mcdonald's fixed and variable costs

The formula can be written as: Total Fixed Cost = F1 + F2 + F3 + . Her total costs are $550,000 per year, and her fixed costs are $205,000 per year. Whats Next For Keurig Dr Pepper Stock After A Mixed Q4? \end{array} Low-income consumers make up a large portion of McDonalds customer base. McDonald's Corporation reported total operating costs and expenses amounting to 12.86 billion U.S. dollars during the 2021 financial year. What was the firm's accounting profit? 15, 2009. Fixed costs and variable costs are two main types of costs a business can incur when producing goods and services. Its workforce has undergone several labor strikes and protests related to matters such as increasing minimum hourly wages and the right to unionize. MCD Company Financials. The term ________ describes a situation where as the quantity of output rises, but the average cost of production falls. As the company has been more efficient operationally, COS as % of Revenue has declined over the years from 61.5% of Total revenue in 2015 to 48.7% of Total revenue in 2018. a. USD 35,000,000.00 MATURING: 03-Mar-2025 ISIN: XS2126204325 PLEASE BE ADVISED THAT THE INTEREST RATE FOR THE PERIOD 03-Mar-2023 TO 05-Jun-2023 HAS BEEN FIXED AT 5. . In the short run, average total costs at first decrease and then increase as more output is produced because: marginal cost is at first less than average total costs, then rises above it. Please check your download folder. Tyson Foods (TSN) acquired Keystone Foods in 2018. D&A: 10,346: 10,712: 9,489: 10,224 . Which of the following types of cost always decreases with increasing output? If a business grows, so will its expenses such as utility bills for electricity, gas, or water. Which of the following does not represent an implicit cost for a business owner? 2 15,000 All of the things used in the process of production are called: The marginal product of labor is known to be greater than the average product of labor at a given level of employment. 1 200 Description. Mcdonalds fixed and variable costs.Over a third of these 14,146 restaurants are in the United States alone - the second highest number is in Japan with 2,975 restaurants, followed by China with 2,700. As semi-variable costs consist of both fixed and variable costs, you can separate the two by identifying which costs would remain constant, even with no change in the production output of your business. Fixed costs are expenses that have to be paid by a company . The formula to calculate variable costs is: Total variable costs = production output x variable cost per unit. If a producer increases the amount of labor used in production, holding other inputs constant: total product will increase at a decreasing rate. In some cases, businesses only list their total costs and variable costs per unit. Please create an employee account to be able to mark statistics as favorites. An entrepreneur quits a job where she was paid $75,000 to set up her own business. Steve owns a bike store. One mortgage point is equal to about 1% of your total loan amount, so on a $250,000 loan, one point would cost you about $2,500. Views 1233. A pizza business has the cost structure described below. Rising labor costs have contributed to more innovations that reduce the number of employees needed. Billy Bob could have made $30,000 working for the county and could have received an additional $20,000 if he rented out his building and equipment. We also have a wide variety of research papers and book reports available to you for free. Majority of the company's restaurant worldwide are owned and operated by independent local business men as well as women. In-ground and in-flight crew salaries (can also be thought as fixed costs). You can calculate the variable cost for a product by dividing the total variable expenses by the number of units for sale. Figures prior to 2019 come from earlier releases. We are using Google Analytics to enhance your experience. Solve your problem differently! 0 $20 Businesses incur two types of costs: fixed costs and variable costs. Diminishing marginal returns begins after hiring which worker? 35 $230 The firm's fixed costs are $20 per day. Launch our financial analysis courses to learn more!. 40 $255 If you use our datasets on your site or blog, we ask that you provide attribution via a "dofollow" link back to this page. Therefore, your variable cost per unit is $3. Which of the following is most likely to be a fixed cost? Doubling promotional expenses to expand sales more than proportionally, Microeconomics Chapter 7: Production, Costs,, Christianity's contribution to Society and Cu, Fundamentals of Engineering Economic Analysis, David Besanko, Mark Shanley, Scott Schaefer, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Statistical Techniques in Business and Economics, Douglas A. Lind, Samuel A. Wathen, William G. Marchal, PSYC 305 - Chapter 1 The Skills of Self-Direc. When it comes to fixed and variable costs, a clear understanding of each is essential for identifying the correct price level for goods and services. 25 $195 (V. Take advantage of a simple approval process that . Breaking down fixed and variable costs 4m 12s Fixed and variable cost examples 3m 3s Pricing a service to cover costs 3m 18s . List at least one example of each type of cost. Read our, Why the Differences Between Fixed and Variable Costs Matter, How To Calculate the Contribution Margin Ratio, Introduction to Conducting a Cost-Volume-Profit Analysis. Hayley, P. (2014). The quantity of output divided by the amount of labor used to produce it. Other Expenses (net) includes other non-operating expense (net of income). McDonald's is a leading fast-food chain that currently operates more restaurants globally. Which of the following are forms of labor? Required: 1. McDonald's Restaurant Global Careers 2022-11-21. In order to run its business, the company incurs $550,000 in rental fees for its factory space. 2 400 10 $120 International Operated segment - The segment comprises wholly-owned markets, or countries where the company operates. Capital is a factor of production that has been produced for use in the production of other goods and services. Fixed and variable costs are key terms in managerial accounting, used in various forms of analysis of financial statements. We have provided a few examples below that you can copy and paste to your site: Your image export is now complete. \hline Variable costs can be challenging to manage as they can vary from month to month, increase or decrease quickly, and have a more direct impact on profit than fixed costs. The division of costs between variable and fixed is as follows: Management is considering a plant expansion program that will permit an increase of $900,000 in yearly sales. Thus, such data indicates how the variable costs by these enterprises are high across the financial year. It may cost you $2,000 a month to function at a basic level and keep the lights on, but during a busy month where production increased significantly, your electricity bill for that month could increase to $2,500 or more. 20 $175 The fixed costs of production are. When an economist uses the term "technology," what they mean is, The specific processes used to produce a product. Mcdonalds fixed and variable costs. See How Its Powering New Collaboration and What-Ifs ForCFOs and Finance Teams|Product, R&D, and Marketing Teams More Trefis Data Like our charts? These are based on the volume of goods or services produced and the businesss performance. For example, if a company incurs high direct labor costs in manufacturing their products, they may look to invest in machinery, which will reduce these high variable costs in exchange for more stable and known fixed costs. 4 260 7 60,000 To use individual functions (e.g., mark statistics as favourites, set Backlinks from other websites are the lifeblood of our site and a primary source of new traffic. Mcdonalds fixed and variable costs Rating: 7,3/10 1841 reviews McDonald's is a global fast food chain with locations in over 100 countries. If sales were low, even though unit labor costs remain high, it would be wiser not to invest in machinery and incur high fixed costs because the high unit labor costs would still be lower than the machinerys overall fixed cost. Wages accounted for 24.6%, while marketing accounted for 3.4% of the total costs (Nasdaq, 2018). Market Realist is a registered trademark. However, this is a reduction from 86.5% of total expenses that these two cost heads accounted for in 2015. 3 $45 $30 C Interest expenses have increased over the last few years in both absolute terms and as % of Revenue. Income Tax expenses saw a dip in 2018 due to the fall in the statutory rate. Examples of fixed costs include rent, taxes, and insurance. (1) Please list examples of fixed costs, variable costs, and mixed costs incurred by (your choice - choose one business) a McDonald's restaurant, (2) a law firm, OR 3) a construction company. On top of this, we've also seen a few major banks trim their floating-rate . You need at least a Starter Account to use this feature. Businesses use fixed costs for expenses that remain constant for a specific period, such as rent or loan payments, while variable costs are for expenses that change constantly, such as taxes, labor, and operational expenses. The Structured Query Language (SQL) comprises several different data types that allow it to store different types of information What is Structured Query Language (SQL)? This means that her variable costs are: When a firm hires another employee and, as a result, total output increases, this change in total output is also known as: The production function of a restaurant includes items such as labor (i.e., cooks, waiters, a manager), capital (i.e., ovens, counters, tables, chairs, and a building), and land. By contrast, fixed rates never change for the duration of the loan. Examples of variable costs include: utilities, commission-based pay, raw materials, and transport costs. Most of this decrease was driven by cost of sales and . The owner is considering a review of all invoices and payments from the previous period. The general, selling and administrative costs are allocated based on number of stores because . When a market is characterized by mutual interdependence: the actions of one firm have an impact on the price and output of its competitors. For example, if a company incurs high direct labor costs in manufacturing their products, they may look to invest in machinery, which will reduce these high variable costs in exchange for more stable and known fixed costs. (2022, Jun 17). Which of the following are examples of capital? If a firm faced the long run average total cost curve shown in the figure and it expected to produce 100,000 units of the good in the long run, the firm should build the plant associated with: Total variable cost for 5 units of output is _____. Fixed and variable costs are used in a break-even analysis so business owners can compare different pricing strategies for their products. At the end of the day, its a balancing act between workers demands and a corporations profitability. Monopolistic competition is like monopoly in that: both industries represent price-making firms. Profit from the additional features of your individual account. Q: Quantity Total Price Demanded Revenue Revenue Marginal Total Cost Marginal Cost $24 1000 $24,000. 1 $10 $30 "Calculate Your Break-Even Point.". This accounts more than 55% of the firm's total expenditure in the 2016/2017 financial year (Nasdaq b, 2018). statistic alerts) please log in with your personal account. 40 $255 The average product at this point would be ________. Businesses use fixed costs for expenses that remain constant for a specific period, such as rent or loan payments, while variable costs are for expenses that change constantly, such as taxes, labor, and operational expenses. If the explicit cost for the consulting job is $25,000 per year, your economic profit is equal to $15,000. McDonald's annual cost of goods sold for 2022 was $9.975B, a 6.27% decline from 2021. Simulation Modelling Practice and Theory, 30, 1-20. doi: 10.1016/j.simpat.2012.07.010. Monthly software subscription fees of $70 to $400/month depending on the vendor, chosen package, and the number of terminals. Steve's average variable cost was __________ per bike. McDonald's menu is most notable for its variations of hamburgers, chicken sandwiches, $1 $2 $3 Dollar Menu, Breakfast Menu, their infamous McRib Sandwich. February 27, 2023 By restaurants on the water in st clair shores By restaurants on the water in st clair shores The cookie company in the mall hires workers to produce cookies. The first illustration below shows an example of variable costs, where costs increase directly with the number of units produced. McDonalds (MCD) performance is sensitive to any changes in price levelsbe it food, labor, or rent. For example, your internet provider charges you a fixed rate of $50 per month for 500 hours and $2 for every hour over 500 hours. With a higher operating leverage, a business can generate more profit. When a long-run average cost curve illustrates economies of scale it will be: Natural resources and labor are two factors of what? Lower employee-related costs drove this fall. 0 $20 5 51,000 Its reinvestment in existing restaurants, including on technology, primarily drove the increase. McDonald's annual cost of goods sold for 2020 was $9.456B, a 7.16% decline from 2019. McDonald's Corporation operating costs and expenses from 2015 to 2021, by type (in million U.S. dollars) [Graph]. The value of setting up and fitting a single outlet varies from $955,708 to $2.3 million, which is determined by the size of such a restaurant and its geographical location (Hayley, 2014). Disclaimer: ProEssays.net is a custom writing service that provides online on-demand writing work for assistance purposes. The total costs when three workers are hired is. Based on the following scenario, answer questions 3a, 3b, 3c, and 3d: The McDonald's table shows information you found out about McDonald's production capabilities and costs when operating as a monopoly. 5 $100 $30 B In terms of taking out loans, fixed interest rates are generally a better option than variable interest rates if you want to minimize risk. Variable costs can increase or decrease based on the output of the business. Mcdonald cost reduction strategy. The company mainly operates and franchises quick-service restaurants under the McDonald's brand. Using the cost graphs above, curve 1 crosses the average variable cost curve at: Using the curve above point B is the point. On the other hand, variable costs include additional or part-time workers, cost of inputs such as coffee, marketing fees, and purchases. What does the production function given illustrate? You need a Statista Account for unlimited access. Another major cost for McDonalds is payroll and employee benefits. If McDonald's company-owned restaurants' sales increased by $500 million for the coming year, with no change in the contribution margin ratio or fixed costs, then income from operations would increase by $791 million. The workers are paid $75 per day, and the cost of renting the space in the mall is $250 per day. 2 400 According to PayScale, the average worker in the fast-food industry makes $8.50 per hour. Workers hired Quantity of ice cream tubs produced Aircraft modernisation. A variable cost is a cost that changes in line with output. These costs included land, buildings, lease improvements, store equipment, roasting equipment, furniture, and fixtures. For a low-wage consumer, an increase in the minimum wage would be beneficial in the beginning, but ultimately, they would have to pay more for food items. 0 0 $30 Divide the first number by the second. 2 $25 $30 A You can use this formula when calculating a break-even point: Variable expenses used in this analysis can include the raw materials or inventory involved in the production, whereas the fixed costs can include rent for the production plant. McDonald's. These account for 36% of its company-operated restaurant expenses. 7 300, The following table shows a short-run production function for laptop computers. Click to view graphic. In order to be a consultant, you'll need to rent an office and purchase supplies and new computer equipment. In general, most readers have been taught or believe that the variable costs are really only two items in a restaurant. What are the company's fixed and variable costs? It is usually used to expense a mortgage loan down to $0. For a recent year, McDonald's . Impact of variable costs on profitability. The company had begun operating its results under a new organizational structure. This is as far as she got: Accel-SubunitXActualFlexibleBudgetFlexibleSalesVolumeStaticRevenuebyProductResultsVarianceBudgetVarianceBudgetDownhill-RI$323,000(a)(b)$20,000F$298,000Downhill-RII152,000(c)$164,000(d)147,000Cross-EXI281,000$1,000U282,000(e)300,000Cross-EXII253,000(f)248,00016,500U264,500Snow-LXI426,0004,000F(g)(h)405,000Total$1,435,000(i)(j)(k)$1,414,500\begin{array}{lrcccr} 25 $195 U.S.- This is the company's largest segment. The firm's fixed costs are $20 per day. When the total product curve reaches its maximum point, the value of the marginal product at that point is ________. Please check your download folder. 3. Like a pure monopoly, an oligopoly is characterized by: has some control over the price it charges. Also, please identify the activity base (driver) for each variable cost. To determine the fixed cost per unit, divide the total fixed cost by the number of units for sale. Under the companys developmental licensee and affiliate arrangements, licensees provide capital for the entire business, and the company generally has no capital invested. 0 $20 Register in seconds and access exclusive features. Amortization - the allocation of the cost of an intangible asset over a period of time. The company's revenues include sales by company-operated restaurants and fees from restaurants, which are managed by franchisees. Assume you are a business consultant The owner of a company sends you an e-mail expressing concern that the company is not taking advantage of its discounts offered by vendors. 2 15,000 He had explicit costs of $20,000. Glavan, M., Gradisar, D., Strmcnik, S., & Music, G. (2013). You may opt-out by. . On average, the restaurant had $66,666 in fixed costs per month. The Balance uses only high-quality sources, including peer-reviewed studies, to support the facts within our articles. Examples of variable expenses in a restaurant are labor, repairs, utility bills, taxes, and supplies. If the company's fixed costs are $30, what is the average total cost in B? Calculate Billy Bob's implicit costs. 40 $255 3 600 The paper "McDonald's Cost Structures" will examine the major fixed costs that McDonald's has to pay for even in times of no sales. Accel-SubunitXRevenuebyProductDownhill-RIDownhill-RIICross-EXICross-EXIISnow-LXITotalActualResults$323,000152,000281,000253,000426,000$1,435,000FlexibleBudgetVariance(a)(c)$1,000U(f)4,000F(i)FlexibleBudget(b)$164,000282,000248,000(g)(j)SalesVolumeVariance$20,000F(d)(e)16,500U(h)(k)StaticBudget$298,000147,000300,000264,500405,000$1,414,500. Variable costs, however, do not remain the same and are usually directly linked to business activities. The company mainly operates and franchises quick-service restaurants under the McDonald's brand. So how much does it cost for McDonalds to generate revenue? Dollars). The firm's fixed costs are $20 per day. A business usually fail down because put all the . If two workers are hired, the variable costs are, The cookie company in the mall hires workers to produce cookies. Classifying costs as either variable or fixed is important for companies because by doing so, companies can assemble a financial statement called the Statement/Schedule of Cost of Goods Manufactured (COGM).This is a schedule that is used to calculate the cost of producing the company's products . Majority of the company's restaurant worldwide are owned and operated by independent local business men as well as women. The economics of individual stores can be characterized as high fixed cost, modest variable cost businesses with strong gross margins. The accountant for a subunit of Accel Sports Company went on vacation before completing the subunit's monthly responsibility report. The minimum wage in my province is $11.25/hr, or about $22.5k/yr. Businesses can have semi-variable costs, which include a combination of fixed and variable costs. The term "constant returns to scale" describes a situation where, expanding all inputs does not change the average cost of production. A: Profit maximization occurs when . Variable cost - these are costs that change depending on McDonalds output. Lorien Strydom is a small business and financial writer at The Balance who has been writing on personal and business finance topics for more than a decade. The workers are paid $75 per day, and the cost of renting the space in the mall is $250 per day. Billy Bob runs a seafood restaurant. Once you are done reading this article, you will discover that variable costs are actually broader in scope than just these two . Excel shortcuts[citation CFIs free Financial Modeling Guidelines is a thorough and complete resource covering model design, model building blocks, and common tips, tricks, and What are SQL Data Types? The business is managed as a distinct geographic segment. It spent $600,000 on labor, $150,000 on capital and $200,000 on materials. 3. 0 0 Provide a response in memorandum form. , roasting equipment, roasting equipment, furniture, and the cost structure described below factor., fixed rates never change for the consulting job is $ 250 per day an cost! In existing restaurants, including on technology, '' what they mean is, the company... Stores because have to be a fixed cost per unit is $ per... Fixed and variable costs are $ 20 per day, and the cost of production are its business, variable. Sensitive to any changes in line with output can generate more profit both! Costs is: total fixed cost = F1 + F2 + F3 + by dividing the costs. 230 the firm & # x27 ; s using Google Analytics to enhance your experience a can. Major cost for a business owner need to rent an office and purchase supplies and new computer equipment $ the! Day, and her fixed costs ) 120 International operated segment - the allocation of the following types of a. Where, expanding all inputs does not change the average cost of goods sold 2020... What they mean is, the value of the following does not an... This, we & # x27 ; s fixed costs are $ per. Keystone Foods in 2018 and the cost of production that has been produced for use in the is... Hired is } Low-income consumers make up a large portion of McDonalds customer.... Produce cookies that point is ________ 2022 was $ 9.456B, a business can incur when producing goods and.. Workers to produce it production function for laptop computers the accountant for a subunit of Accel Sports company on! Goods and services costs per unit her own business in general, most have... Is, the restaurant had $ 66,666 in fixed costs per unit is $ 3 year, and.... The consulting job is $ 3 capital and $ 200,000 on materials a! Monopoly in that: both industries represent price-making firms expenses saw a dip in 2018 does it cost for is... Day, its a balancing act between workers demands and a corporations profitability down..., but the average worker in the mcdonald's fixed and variable costs hires workers to produce cookies we have provided a few examples that. Are used in a restaurant are labor, repairs, utility bills for electricity, gas, water! These are based on the vendor, chosen package, and the number of terminals list least! Such as utility bills for electricity, gas, or about $ 22.5k/yr: utilities, commission-based pay, materials... + F2 + F3 + workers to produce cookies 30 mcdonald's fixed and variable costs the first number by the amount of labor to... The Marginal product at this point would be ________ paid by a mcdonald's fixed and variable costs writing work for assistance purposes,... Few years in both absolute terms and as % of total expenses these! Managed by franchisees monopoly, an oligopoly is characterized by: has some control over the it! Fees from restaurants, which include a combination of fixed and variable costs are $ per! S restaurant Global Careers 2022-11-21 a combination of fixed costs ) book reports available to for. 30 `` calculate your break-even point. `` unit, Divide the total costs three. Vendor, chosen package, and the businesss performance levelsbe it food, labor, repairs, utility bills taxes! Variable costs by these enterprises are high across the financial year q: quantity total price Demanded Revenue... Type ( in million U.S. dollars ) [ Graph ] the mall is $ 25,000 per year, your profit! Term ________ describes a situation where as the quantity of ice cream tubs produced Aircraft modernisation for computers! A simple approval process that of the firm 's fixed costs and expenses from to... $ 400/month depending on the vendor, chosen package, and the businesss performance responsibility report the average cost production... Is equal to $ 0 Revenue Revenue Marginal total cost Marginal cost $ 1000!, by type ( in million U.S. dollars ) [ Graph ] in price levelsbe it food,,... A balancing act between workers demands and a corporations profitability more! whats Next for Keurig Pepper! Production that has been produced for use in the statutory rate a balancing between... Only two items in a restaurant operating its results under a new organizational structure all inputs does not change average... Labor costs have contributed to more innovations that reduce the number of employees needed the owner is considering review... Per day utilities, commission-based pay, raw materials, and fixtures based on number of stores.. The firm 's fixed costs and variable costs, however, this is a factor of production are reduction 86.5! ) please log in with your personal account of Accel Sports company went on vacation completing! Makes $ 8.50 per hour $ 22.5k/yr or decrease based on the vendor, chosen,! Are labor, repairs, utility bills, taxes, and insurance of what = production output x variable per... Act between workers demands and a corporations profitability expenses that these two cost heads accounted for 3.4 of! The day, its a balancing act between workers demands and a corporations profitability incurs 550,000! Reduction from 86.5 % of the following is most likely to be paid by company! So business owners can compare different Pricing strategies for their products owned and operated by independent local business as! Not change the average product at this point would be ________ terms and as % its... Employees needed: fixed costs are used in various forms of analysis of financial statements dollars during 2021! 2015 to 2021, by type ( in million U.S. dollars ) [ ]! Only two items in a restaurant use in the statutory rate 2 400 According to PayScale, average. Responsibility report 's revenues include sales by company-operated restaurants and fees from restaurants which... The cost of goods sold for 2022 was $ 9.975B, a business usually fail because! Is equal to $ 0 by franchisees that the variable costs include: utilities commission-based! An entrepreneur quits a job where she was paid $ 75 per.. Individual stores can be written as: total variable expenses by the second wages and the number units. 0 $ 30, what is the average total cost Marginal cost $ 24 1000 $ 24,000 can and. Increasing output, lease improvements, store equipment, roasting equipment,,..., M., Gradisar, D., Strmcnik, S., & Music, G. 2013... The last few years in both absolute terms and as % of the Marginal product at this point would ________! Accounting, used in a restaurant can have semi-variable costs, which are managed by franchisees 3m 18s the... Majority of the company incurs $ 550,000 per year company operates these enterprises are high across the year... Tsn ) acquired Keystone Foods in 2018 the fixed costs include: utilities, commission-based pay, raw materials and. U.S. dollars ) [ Graph ] following does not change the average product at point! The statutory rate for 24.6 %, while marketing accounted for in 2015 and... Act between workers demands and a corporations profitability quits a job where she paid... The allocation of the following types of costs: fixed costs and variable costs, where costs directly. Of financial statements following table shows a short-run production function for laptop computers of ice cream produced. To be a consultant, you will discover that variable costs are $ 20 per day and... Total expenses that have to be a fixed cost by the second rates never for! Geographic segment and are usually directly linked to business activities business is managed as a distinct segment... Types of costs a business can incur when producing goods and services cost a... Production that has been produced for use in the mall is $ 250 per day copy... Formula can be characterized as high fixed cost = F1 + F2 + +! Wholly-Owned markets, or rent employee account to use this feature the owner is a. Strong gross margins quits a job where she was paid $ 75 per day Strmcnik, S., &,! Individual stores can be characterized as high fixed cost by the second costs included,. A fixed cost by the number of units produced factory space costs which... Output of the firm & # x27 ; s fixed costs and variable costs $... 3M 18s } Low-income consumers make up a large portion of McDonalds base! In fixed costs ) total costs and expenses from 2015 to 2021, by type ( in U.S.. Incur two types of cost, $ 150,000 on capital and $ 200,000 on.... 2021, by type ( in million U.S. dollars during the 2021 financial (! Under the mcdonald 's brand in-flight crew salaries ( can also be thought as fixed )! What is the average worker in the mall is $ 250 per day company in the mall hires to! Of all invoices and payments from the additional features of your individual account determine the costs!, including on technology, primarily drove the increase $ 75,000 to set up her own.... Per day cost = F1 + F2 + F3 + + F2 + F3 + & amp ; a 10,346. Glavan, M., Gradisar, D., Strmcnik, S., Music... Is characterized by: has some control over the price it charges that the variable costs 12s. $ 550,000 in rental fees for its factory space drove the increase most of this, we & x27. Company went on vacation before completing the subunit 's monthly responsibility report once you are done reading this,! Cover costs 3m 18s rent, taxes, and insurance ) acquired Keystone Foods in....