Fred's Pizza is considering closing store no. 16 due to their
recent financial performance:
Sales $205,000
Cost of sales $67,900 Furnishings & equipment $20,000
Building occupancy costs: Transportation cost $2,800
Rent Expense 36,500 Parking revenue $2,000
Utilities Expense 15,000
Supplies Expense 5,600
Hourly wages 57,700
Manager’s salary $27,000
Allocated
corporate overhead
16,800
All employees except the store manager would be let go. The manager
would be transferred to another store. All furnishings &
equipment are fully depreciated & would be transported to a
warehouse at a cost of $2,800. The parking lot generates
$2,000 event parking revenue during game season.
Note (R) relevant or (N) not relevant.
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