Pantino’s Pizza & Pasta
Pantino’s Pizza & Pasta – Case Study[pic 1]Pantino’s Pizza & Pasta has the following information available regarding costs at various levels of monthly sales in the second quarter of 2011. April May JuneMonthly sales in covers 25,000 37,000 45,000Cost of Food Sold $50,000 $74,000 $90,000Salaries, Wages, and Benefits 60,000 62,400 64,000Telephone 25,500 32,700 37,500Rent 4,800 4,800 4,800Depreciation (kitchen equipment) 1,200 1,200 1,200Marketing 17,200 22,000 25,200Utilities 2,000 2,600 3,000
Repairs and Maintenance 1,200 1,680 2,000Administrative and General 5,200 5,200 5,200Develop a schedule identifying the amount of each cost that is fixed per month or variable per unit using the High / Low Method. Total the amounts under each category to develop an equation for total monthly costs.ItemFixed CostsVariable Cost/UnitCost of Food Sold02.00Salaries, Wages, and Benefits55,000.2Telephone10,500.6Rent4,8000Depreciation (kitchen equipment)1,2000Marketing7,200.4Utilities750.05Repairs and Maintenance200.04Administrative and General5,2000Total:84,8503.29