help what did I do wrong? More Info In 20X3, each had sales of $1,150,000. The B

Question

help what did I do wrong?

More Info In 20X3, each had sales of $1,150,000. The Bedford restaurant is still pricing lower than the Boston restaurant to establish a customer base. Variable expenses run 55% of sales for the Boston restaurant and 60% of sales for the Bedford restaurant. Each manager is responsible for the rent and some other fixed costs for his or her restaurant. These costs amounted to $105,000 for the Boston restaurant and $55,000 for the one in Bedford. The difference is primarily due to lower rent in Bedford. In addition, several costs, such as advertising, legal services, accounting, and personnel services, were centralized. The managers had no control of these expenses, but some of them directly benefited the individual restaurants. Of the $340,000 cost in this category, $90,000 related to Boston and $155,000 to Bedford, where most of the additional cost in Bedford is due to the cost of extra advertising to build up its customer base. The remaining $95,000 was general corporate overhead. Print Done

Explanation / Answer

The variable cost is wrong. The correct variable cost is 1150000*55%+1150000*60%=1322500

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