Shula\'s 347 Grill has budgeted the following costs for a month in which 1,600 steak dinners will be produced and sold: Materials, $4,080; hourly labor (variable), $5,200; rent (fixed), $1,700; depreciation, $800; and other fixed costs, $600. Each steak dinner sells for $14.00 each. What is Shula\'s budgeted profit? Solution Answer Shula\'s budgeted profit = $ 10,020 Working .

1. Shula's 347 Grill has budgeted the following costs for a month in which 1,600 steak dinners will
be produced and sold: Materials, $4,080; hourly labor (variable), $5,200; rent (fixed), $1,700;
depreciation, $800; and other fixed costs, $600. Each steak dinner sells for $14.00 each. What is
Shula's budgeted profit?
Solution
Answer
Shula's budgeted profit = $ 10,020
Working
Calculation Budgeted
Profit
Sales 22400
Variable Expenses
Material 4080
Labor 5200 9280
Contribution Margin 13120
Fixed Cost
Rent 1700
Depreciation 800
Other Fixed Cost 600 3100
Budgeted Profit 10020