3. Triple U Law Office has a usage of 1,000 pcs of medium sized box files quarterly in the law firm. The law firm is trying to do some cost reduction and one of the areas where they think they can do even a little savings will be on their supplies. However, the administrator of the office, Atty. Ulah insisted in ordering a quantity of 330 pcs every time they place an order. The cost to place an order amounts to BD 20 while the carrying cost of BD 2.5. Identify the amount of money that will either be saved or lost by the law firm if they

3. Triple U Law Office has a usage of 1,000 pcs of medium sized box files quarterly in the law firm. The law firm is trying to do some cost reduction and one of the areas where they think they can do even a little savings will be on their supplies. However, the administrator of the office, Atty. Ulah insisted in ordering a quantity of 330 pcs every time they place an order. The cost to place an order amounts to BD 20 while the carrying cost of BD 2.5. Identify the amount of money that will either be saved or lost by the law firm if they

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Zozan Corp. manufactures Hydrogen engines automobiles. Recently 450 new orders placed by customers requesting credit. The variable cost is $35,000 per unit, and the credit price is $43,000 each. Credit is extended for one period, and based on historical experience, payments for 20% of the orders are never collected. The required return is 4% per period. Assuming a repeat customer, should it be filled by the firm? The customer will not buy if credit is not extended
Sharon's Cutting Station offers a new concept in haircuts; low cost and very quick. Set in a local mall, Sharon's offers 15-minute haircuts for harried shoppers who do not have time for lengthy appointments. To ensure that the clients are in and out quickly, she schedules her 5 employees based on expected client traffic. Each of the employees is paid $1220 per month, with part of their pay coming from client tips. Sharon pays rent and overhead costs of $2400 per month on the facility. Because of the quick nature of the service, Sharon doesn't have time to clean combs in between clients, so she uses a new comb for each customer, at a cost of $0.60 each. She also provides shampoo and conditioner for each client at a cost of $1.05 per client. The average price for a haircut is $15. Sharon pays herself $5600 per month. What is Sharon's contribution margin ratio? 89.0% 85.8% O 12.0% O 11.0%
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The KVS Pharmacy is open from 10:00 A.M. to 8:00 P.M.,and it receives 200 calls per day for delivery orders. It coststhe pharmacy $25 to send out its cars to make deliveries.The pharmacy estimates that each minute a customerspends waiting for their order costs the pharmacy $0.20 inlost sales. a. How frequently should KVS send out its delivery carseach day? Indicate the total daily cost of deliveries. b. If a car could only carry six orders how often would de-liveries be made and what would be the cost?
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MM Co. predicts sales of $45,000 for May. MM Co. pays a sales manager a monthly salary of $4,200 plus a commission of 6% of sales dollars. MM's production manager recently found a way to reduce the amount of packaging MM uses. As a result, MM's product will receive better placement on store shelves and thus May sales are predicted to increase by 9%. In addition, MM's shipping costs are predicted to decrease from 4% of sales to 2% of sales. Compute (1) budgeted sales and (2) budgeted selling expenses for May assuming MM switches to this more sustainable packaging. Answer is not complete. (1) Budgeted sales (2) Budgeted selling expenses
Blossom Enterprises uses a computer to handle its sales invoices. Lately, business has been so good that it takes an extra 3 hours per night, plus every third Saturday, to keep up with the volume of sales invoices. Management is considering updating its computer with a faster model that would eliminate all of the overtime processing. Current Machine New Machine Original purchase cost $14,500 $24,500 Accumulated depreciation $5,000 _ Estimated annual operating costs $24,500 $19,500 Remaining useful life 5 years 5 years If sold now, the current machine would have a salvage value of $9,500. If operated for the remainder of its useful life, the current machine would have zero salvage value. The new machine is expected to have zero salvage value after 5 years.Prepare an incremental analysis to determine whether the current machine should be replaced. (In the first two columns, enter costs and expenses as positive…
Johnson Enterprises uses a computer to handle its sales invoicesLately, business has been so good that it takes an extra 3 hours per night, plus every third Saturdayto keep up with the volume of sales invoicesManagement is considering updating its computer with a faster model that would eliminate all of the overtime processing . Current Machine New Machine Original purchase cost $14,900$ 25,200 Accumulated depreciation $6,600 Estimated annual operating costs $ 24,600 $19,600 Remaining useful life years 5 years sold now , the current machine would have a salvage value of $ 10,200 operated for the remainder of its useful life, the current machine would have zero salvage value . The new machine is expected to have zero salvage value
A cupcake shop just rented out a new space and bought some new ovens and equipment for $18,000. The cost of ingredients and labor to make a single cupcake is $0.90, but the bakery sells them for $3.20 apiece. Approximately how many cupcakes will the shop need to sell to break even? 4,391 cupcakes 5,625 cupcakes 7,827 cupcakes 16,200 cupcakes
Samantha Ross is the procurement manager for the headquarters of a large Financial company chain with a central inventory operation. Ross’ quick-moving inventory item has a demand of 7,000 units per year. Each unit cost $120, and the inventory holding cost is $15 per unit per year. The average ordering cost is $31 per order. It takes about 6 days for an order to arrive. (This is a corporate operation, and there are 250 working days per year.) a) What is the annual cost of ordering and holding inventory? b) Including the cost of the 7,000 units. What is the total annual inventory cost? c) What is the total annual cost?
Bakeryco sells cakes and croissants. Its only constraint is total employee work hours of 300 per week. SFco would like to order 1240 croissants and pay $5.30 each for them. Given the information below, should Bakeryco take SFco’s order? Cakes Croissants Usual Price $32 $6.50 VC $18.50 $1.95 Time required to make 90 minutes 3 minutes Current sales volume 123 per week 2,120 per week
A successful franchise owner of a prestigious sporting goods chain is feeling the effects of technology, with more and more online sales and less and less customers in the shops. Locally there are three stores, and typically each store needs the following positions staffed for optimum profitability and success: a store manager an assistant manager five department managers and 20 customer service representatives, Averaging $1 200 000 in annual revenue. However, there has been a trend of 20 percent sales decline in stores, with an increase of 30 percent sales online (last year the online revenue stream was $300 000). The franchise owner was able to handle all of the online sales with a team of five full-time remote workers (working from home) last year. The owner wants each store to maintain its productivity, which he measures as the revenue per employee. He also thinks that there is potential to grow the online business. Please help the owner by answering the following questions.…