Survey Of Accounting
5th Edition
ISBN: 9781259631122
Author: Edmonds, Thomas P.
Publisher: Mcgraw-hill Education,
expand_more
expand_more
format_list_bulleted
Videos
Question
Chapter 11, Problem 10E
a)
To determine
The total band cost and the cost per person
b)
To determine
Whether the cost of hiring is variable or fixed cost
c)
To determine
Graphical representation of plotting the cost and cost per unit if attendances are 2,000, 3,000, 3,500, or 4,000
d)
To determine
B Corporations risk and the ways to minimize the risk
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Exercise 11-10A (Algo) Fixed versus variable cost behavior LO 11-1, 11-2
Jordan Entertainment sponsors rock concerts. The company is considering a contract to hire a band at a cost of $85,000 per concert.
Required
a. What are the total band cost and the cost per person if concert attendance is 5,000, 5,500, 6,000, 6,500, or 7,000?
b. Is the cost of hiring the band a fixed or a variable cost?
Complete this question by entering your answers in the tabs below.
Required A
Required B
What are the total band cost and the cost per person if concert attendance is 5,000, 5,500, 6,000, 6,500, or 7,000?
Note: Round "Cost per person" answers to 2 decimal places.
Number attending
Total cost of concert
Cost per person
5,000
5,500
6,000
6,500
7,000
2 Homework i
Saved
Exercise 11-10A (Algo) Fixed versus variable cost behavior LO 11-1, 11-2
Solomon Entertainment sponsors rock concerts. The company is considering a contract to hire a band at a cost of $95,000 per
concert.
Required
a. What are the total band cost and the cost per person if concert attendance is 3,000, 3,500, 4,000, 4,500, or 5,000?
b. Is the cost of hiring the band a fixed or a variable cost?
Complete this question by entering your answers in the tabs below.
Required A
Required B
What are the total band cost and the cost per person if concert attendance is 3,000, 3,500, 4,000, 4,500, or 5,000? (Round
"Cost per person" answers to 2 decimal places.)
Number attending
3,000
3,500
4,000
4,500
5,000
Total cost of concert
Cost per person
The question 1 point possible
Stancil Dry Cleaners has determined the following about its costs: Total variable expenses are $42,000, total fixed expenses are $30,000, and the sales revenue needed to break even is $50,000. Determine the company's current)
revenue and 2) operating income. (Hint First, find the contribution margin ratio; then prepare the contribution margin income statement)
Use the contribution margin income statement and the shortcut contribution margin approaches to determine Stancif's current (1) sales revenue and (2) operating income
Begin by computing the contribution margin ratio. (inter the result as a whole number)
The contribution margin ratio la
Question Viewer
Prepare the contribution margin income statement at the calculated sales level.
Stancil Drycleaners
Contribution Margin Income Statement
Submit t
Chapter 11 Solutions
Survey Of Accounting
Ch. 11 - 1.Define fixed cost and variable cost and give an...Ch. 11 - Prob. 2QCh. 11 - 3.Define the term operating leverage and explain...Ch. 11 - Prob. 4QCh. 11 - Prob. 5QCh. 11 - 6.If volume is increasing, would a company benefit...Ch. 11 - Explain the risk and rewards to a company that...Ch. 11 - 9.Are companies with predominately fixed cost...Ch. 11 - 10.How is the relevant range of activity related...Ch. 11 - Which cost structure has the greater risk?...
Ch. 11 - 14.The president of Bright Corporation tells you...Ch. 11 - Prob. 12QCh. 11 - Prob. 13QCh. 11 - Prob. 14QCh. 11 - Prob. 15QCh. 11 - Prob. 16QCh. 11 - Prob. 17QCh. 11 - Prob. 1ECh. 11 - Prob. 2ECh. 11 - Prob. 3ECh. 11 - Exercise 2-4A Determining total variable cost The...Ch. 11 - Prob. 5ECh. 11 - Prob. 6ECh. 11 - Prob. 7ECh. 11 - Prob. 8ECh. 11 - Prob. 9ECh. 11 - Prob. 10ECh. 11 - Prob. 11ECh. 11 - Prob. 12ECh. 11 - Prepare an income statement using the contribution...Ch. 11 - Prob. 14ECh. 11 - Prob. 15ECh. 11 - Prob. 16ECh. 11 - Prob. 17ECh. 11 - Prob. 18ECh. 11 - Prob. 19ECh. 11 - Prob. 20ECh. 11 - Prob. 21PCh. 11 - Prob. 22PCh. 11 - Problem 2-19A Context-sensitive nature of cost...Ch. 11 - Prob. 24PCh. 11 - Prob. 25PCh. 11 - Prob. 26PCh. 11 - Prob. 27PCh. 11 - Prob. 28PCh. 11 - Prob. 29PCh. 11 - Prob. 1ATCCh. 11 - Prob. 2ATCCh. 11 - Prob. 3ATCCh. 11 - Prob. 4ATCCh. 11 - Prob. 5ATC
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Question Feip Suppose that a manufacturer can produce a part for $9.00 with a fixed cost of $5,000. Alternately, the manufacturer could contract with a supplier in Asia to purchase the part at a cost of $11.00, which includes transportation. a. If the anticipated production volume is 1,500 units, compute the total cost of manufacturing and the total cost of outsourcing. b. What is the best decision? a. The total cost of manufacturing is $ (Simplify your answer.) PI ry sit nas mu Enter your answer in the answer box and then click Check Answer. parts remaining Check Answer Clear All Type here to searcharrow_forwardSnowParadise operates a Rocky Mountain ski resort. The company is planning its lift ticket pricing for the coming ski season. Investors would like to earn a 15% return on investment on the company's $135,000,000 of assets. The company primarily incurs fixed costs to groom the runs and operate the lifts. SnowParadise projects fixed costs to be $36,000,000 for the ski season. The resort serves about 750,000 skiers and snowboarders each season. Variable costs are about $11 per guest. Currently, the resort has such a favorable reputation among skiers and snowboarders that it has some control over the lift ticket prices. Read the requirements. Requirement 1. Would SnowParadise emphasize target pricing or cost-plus pricing? Why? SnowParadise should emphasize a reputation, managers will have willing to pay. approach to pricing because it has been able to differentiate its ski resort from others in the area. Because of its good control over pricing. Of course, they still need to consider…arrow_forwardAssume that a radiologist group practice has the following cost structure: Fixed costs Variable cost per procedure Charge (revenue) per procedure $500,000 25 100 Furthermore, assume that the group expects to perform 7,500 proce- dures in the coming year. a. Construct the group's base case projected P&L statement. b. What is the group's contribution margin? What is its breakeven point? c. What volume is required to provide a pretax profit of $100,000? A pretax profit of $200,000? d. Sketch out a CVP analysis graph depicting the base case situation. e. Now assume that the practice contracts with one HMO, and the plan proposes a 20 percent discount from charges. Redo questions a, b, c, and d under these conditions.arrow_forward
- Question 1 What would be the BEP in units sales if the company decides to: Increase the Sales Price from $100 to $105 by spending annually $5000 for advertisement. Question 2 What would be the BEP in units sales if the company decides to: Increase the Sales Price from $100 to $105 and cutting the fixed salary of the salespeople by $15000 and instead provides them $10 per unit commission?Question 3 Which one of the following options provides better units BEP for the company? Option A: Increase the Sales Price from $100 to $105 by spending annually $5000 for advertisement. Option B: Increase the Sales Price from $100 to $105 and cutting the fixed salary of the salespeople by $15000 and instead provides them $10 per unit commission. Option A Option B Both options are same None of the OptionsUse the available pick lists from within the three boxed areas to change values, noting how the break-even units change within the green - shaded area. Think critically about why the changes in…arrow_forwardBreak-Even Analysis and CVP Graphing The Hartford Symphony Guild is planning its annual dinner-dance. The dinner-dance committee has assembled the following expected costs for the event: The committee members would like to charge $35 per person for the evening’s activities. Required: 1. What is the break-even point for the dinner-dance (in terms of the number of persons who must attend)? 2. Assume that last year only 300 persons attended the dinner-dance. If the same number attend this year, what price per ticket must be charged in order to break even? 3. Refer to the original data ($35 ticket price per person). Prepare a CVP graph for the dinner-dance from zero tickets up to 600 tickets sold.arrow_forwardQuestion Two companies Malcom and Yoda manufacture the similar hand-sanitizing products. The following data for the two companies for the year 2019 are provided below: Malcom ($) Yoda ($) Sales revenue 60,000 72000 Total costs 42,000 48000 Variable Costs 40 % of sales revenue 50% Required: Calculate the Break Even Point (BEP) in dollars of product for each company. Calculate the percentage margin of safety for each company. If sales of the product in Yoda company are equal to 3,000 units, determine the BEP (in units), and present the Break-even chart. I Would like more info on point number 3 with the break even chartarrow_forward
- 14 Howard Cooper, the president of Finch Computer Services, needs your help. He wonders about the potential effects on the firm's net income if he changes the service rate that the firm charges its customers. The following basic data pertain to fiscal Year 3. Standard rate and variable costs Service rate per hour Labor cost Overhead cost Selling, general, and administrative cost Expected fixed costs Facility maintenance Selling, general, and administrative Required: a. Prepare the pro forma income statement that would appear in the master budget if the firm expects to provide 36,000 hours of services in Year 3. Required Required Required A B с $ b. A marketing consultant suggests to Mr. Cooper that the service rate may affect the number of service hours that the firm can achieve. According to the consultant's analysis, if Finch charges customers $80 per hour, the firm can achieve 45,000 hours of services. Prepare a flexible budget using the consultant's assumption. c. The same…arrow_forwardQuestions: What is the minimum transfer price that the repair division should obtain for its services, assuming it is operating at capacity? P 28.50 per hour P 30.00 per hour P 48.00 per hour What is the maximum price the management division should pay? P 28.50 P 30.00 P 48.00 If the repair division has idle capacity, what is the minimum transfer price that the repair division should obtain? P 28.50 P 30.00 P 48.00arrow_forwardQuestion 3 Assume that HASF furniture Inc., as described, currently purchases the chair cushions for its lawn set from an outside vendor for $30 per set. Modern Furniture’s chief operations officer wants an analysis of the comparative costs of manufacturing these cushions to determine whether bringing the manufacturing in-house would save the firm money. Additional information shows that if Modern furniture’s were to manufacture the cushions, the materials cost would be $16 and the labor cost would be $10 per set and that it would have to purchase cutting and sewing equipment, which would add $25,000 to annual fixed costs. NOTE: No need to enter comma between numbers Required Computation for 10,000 units What amount should have been inccrued if company produce 10,000 units What amount should have been inccrued if company purhcase 10,000 units from outside What amount company save if company make 10,000 cushionsarrow_forward
- Question Description Company XYZ has a monthly rental amount of 2000 USD, credit payments(1200 per year), materials 30USD, Labor 70 USD, Unit selling price is 150$. Please find BEP andprepare a profit and loss statement. Going forward company also decided to look at theirproductivity from a multifactor perspective. To do so, CEO has determined his labor, capital,energy and material usage and has decided to use dollar as the common denominator. His totallabor hours are now 300 per day and will increase to 308 per day. His capital and energy costs willremain constant at $350 and $150 per day respectively. Material costs for 100 logs per day are$1000 and will remain the same. Because he pays an average of $10 per hour. a) calculate the productivity for current system and with professional buyer.b) Please prepare a flow diagram, process chart, activity chart and operations chart for a teacherteaching a class at FMS?arrow_forwardDivision A of Huskie, Inc. has operating data as follows: Capacity Selling price Variable costs Fixed costs A. B. Division B wants to purchase units from Division A. If Division A agrees to sell units to Division B, A's variable costs will be $5 less per unit. C. If Division A has capacity available to meet B's requirements, what is the minimum price it should charge? $40 $30 20,000 units $75 $80 per unit D. $60 $35 per unit $20 per unitarrow_forwardJilrn/takeAssignment/takeAssignment Main.do?invoker=&takeAssignmentSession Locator=&inprogress=false eBook Show Me How Contribution Margin Ratio a. Young Company budgets sales of $1,280,000, fixed costs of $66,200, and variable costs of $294,400. What is the contribution margin ratio for Young Company? % b. If the contribution margin ratio for Martinez Company is 52%, sales were $682,000, and fixed costs were $262,430, what was the operating income? Check My Work 2 more Check My Work uses remaining, B Previous Nextarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Financial And Managerial AccountingAccountingISBN:9781337902663Author:WARREN, Carl S.Publisher:Cengage Learning,
Managerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College Pub
Financial And Managerial Accounting
Accounting
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:Cengage Learning,
Managerial Accounting
Accounting
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:South-Western College Pub
How to Estimate Project Costs: A Method for Cost Estimation; Author: Online PM Courses - Mike Clayton;https://www.youtube.com/watch?v=YQ2Wi3Jh3X0;License: Standard Youtube License