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The Owner of Spicy's Gourmet Popcorn Is Concerned Because the Stand

Question 223

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The owner of Spicy's Gourmet Popcorn is concerned because the stand has been averaging sales of only 7,500 cartons per month, the stand and staff can make 15,000 cartons of popcorn per month. The variable cost of each carton is $1.50. Monthly fixed costs are (taxes, licenses, space rent and salaries) are $10,000. The owner wants cost information about different volumes so that he can make some operating decisions.
Required: Fill in the following chart to provide Bob with the information he wants.
The owner of Spicy's Gourmet Popcorn is concerned because the stand has been averaging sales of only 7,500 cartons per month, the stand and staff can make 15,000 cartons of popcorn per month. The variable cost of each carton is $1.50. Monthly fixed costs are (taxes, licenses, space rent and salaries) are $10,000. The owner wants cost information about different volumes so that he can make some operating decisions. Required: Fill in the following chart to provide Bob with the information he wants.

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