Jj.76. Parkview Fish Tacos sells tacos for $5.60 each. The cost of each taco follows:Materials (food)LaborVariable overheadFixed overhead ($7,200 per month, 4,500 tacos per month)Total costs per tacoOne of Parkview's regular customers asked the company to fill a special order of tacos at a selling price of $4.60 each for a youthbasketball tournament at the local school. Parkview has capacity to fill it without affecting total fixed costs for the month. Parkview'sgeneral manager (and owner and cook) was concerned about selling the tacos below the cost of $4.52 and has asked for your advice.Required:a. Prepare a schedule to show the impact on Parkview's profits of providing 355 tacos in addition to the regular production and salesof 4,500 tacos per month.b. Based solely on the data given, what is the lowest price per taco at which the special order can be filled without reducing Parkview'sprofits?Complete this question by entering your answers in the tabs below.Required A Required BPrepare a schedule to show the impact on Parkview's profits of providing 355 tacos in addition to the regular production andsales of 4,500 tacos per month. (Select option "higher" or "lower", keeping Status Quo as the base. Select "none" if there isno effect.)Sales revenueLess variable costs:MaterialsLaborStatus Quo 4500 Alternative 4855tacostacosParkview Fish Tacos sells tacos for $5.60 each. The cost of each taco follows:Materials (food)LaborVariable overheadFixed overhead ($7,200 per month, 4,500 tacos per month)Total costs per taco$ 1.900.660.361.60$4.52DifferenceRequired A Required BOne of Parkview's regular customers asked the company to fill a special order of tacos at a selling price of $4.60 each for a youthbasketball tournament at the local school. Parkview has capacity to fill it without affecting total fixed costs for the month. Parkview'sgeneral manager (and owner and cook) was concerned about selling the tacos below the cost of $4.52 and has asked for your advice.Complete this question by entering your answers in the tabs below.Required:a. Prepare a schedule to show the impact on Parkview's profits of providing 355 tacos in addition to the regular production and salesof 4,500 tacos per month.Lowest priceb. Based solely on the data given, what is the lowest price per taco at which the special order be filled without reducing Parkview'sprofits?$ 1.900.66per taco0.361.60$ 4.52< Required ABased solely on the data given, what is the lowest price per taco at which the special order can be filled without reducingParkview's profits? (Enter your answer to 2 decimal places.)

It is necessary to deduct the variable costs from the sales revenue so as to determine the…

Answered: Parkview Fish Tacos sells tacos for…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Parkview Fish Tacos sells tacos for $4.70 each. The cost of each taco follows: Materials (food) Labor Variable overhead Fixed overhead ($7,200 per month, 4,500 tacos per month) Total costs per taco One of Parkview's regular customers asked the company to fill a special order of tacos at a selling price of $3.70 each for a youth basketball tournament at the local school. Parkview has capacity to fill it without affecting total fixed costs for the month. Parkview's general manager (and owner and cook) was concerned about selling the tacos below the cost of $3.89 and has asked for your advice. Required: a. Prepare a schedule to show the impact on Parkview's profits of providing 310 tacos in addition to the regular production and sales of 4,500 tacos per month. b. Based solely on the data given, what is the lowest price per taco at which the special order can be filled without reducing Parkview's profits? Complete this question by entering your answers in the tabs below. Required A…
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