Bella's Bistro is analyzing the profitability of three segments: café, bakery, and catering. Revenues and direct...
90.2K
Verified Solution
Link Copied!
Question
Accounting
Bella's Bistro is analyzing the profitability of three segments: café, bakery, and catering. Revenues and direct costs (variable plus fixed costs) for each segment are as follows:
Segment | Revenue | Direct Costs |
Café | $400,000 | $250,000 |
Bakery | $200,000 | $120,000 |
Catering | $60,000 | $40,000 |
Bella, the owner, is considering converting the bakery area into an expanded café area.
Required: a. Based on segment margin analysis, by how much will the café segment margin have to increase for Bella’s Bistro’s income to be at least as high as it is now? b. What other considerations should Bella take into account before making the decision to eliminate the bakery to expand the café area?
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.