Accounting

Uses of Unit Cost Information

SE11. Accounting Connection ▶ Doug, the owner of a miniature golf course with 36 holes of miniature golf, must make several business decisions soon. Write yes or no to indicate whether knowing the cost to provide one golf game (i.e., the service unit cost) can help Doug answer these questions:

a. Is the fee for playing a golf game high enough to cover the related cost?

b. How much profit will Miniature Golf make if it sells an average of 100 games per day for 50 weeks?

c. What costs can be reduced to make the fee more competitive?