Sales mixPet Palace provides two types of services to dog owners: grooming and training. All company personnel can perform each service equally well. To expand sales and market share, Pet Palacmanager, Jim Jones, relies heavily on radio and billboard advertising, but next year's advertising budget is expected to be very limited. Information on projected operations for next yearfollows.Revenue per billable hourVariable cost of laborMaterial cost per billable hourGrooming Training$50$70$20$41$6$7$450,000 $468,000Allocated fixed cost per yearProjected billable hours for the year54,000 36,000a. What is Pet Palace's projected pre-tax profit (or loss) for next year? $ 0b. If $1 spent on advertising could increase grooming revenue by $20 or training revenue by $20, on which service should the advertising dollar be spent?c. If $1 spent on advertising could increase either grooming billable time or training billable time by one hour, on which service should the advertising dollar be spent?

ParticularsGroomingTrainingRevenue per billable hour $50$70Material cost per billable…

Answered: a. What is Pet Palace's projected…

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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Payback Period Each of the following scenarios is independent. Assume that all cash flows are after-tax cash flows. a. Colby Hepworth has just invested $550,000 in a book and video store. She expects to receive a cash income of $120,000 per year from the investment. b. Kylie Sorensen has just invested $1,580,000 in a new biomedical technology. She expects to receive the following cash flows over the next 5 years: $350,000, $490,000, $790,000, $490,000, and $300,000. c. Carsen Nabors invested in a project that has a payback period of 4 years. The project brings in $960,000 per year. d. Rahn Booth invested $1,350,000 in a project that pays him an even amount per year for 5 years. The payback period is 2.5 years. Required: 1. What is the payback period for Colby? Round your answer to two decimal places. years 2. What is the payback period for Kylie? Round your answer to one decimal place. years 3. How much did Carsen invest in the project? 4. How much cash does Rahn receive each year? per…
K You are a real estate agent thinking of placing a sign advertising your services at a local bus stop. The sign will cost $4,400 and will be posted for one year. You expect that it will generate additional revenue of $836 a month. What is the payback period? The payback period is months. (Round to one decimal place.)
The manager of Pharoah is given a bonus based on net income before taxes. The net income after taxes is $75980 for FIFO and $64500 for LIFO. The tax rate is 30%. The bonus rate is 20%. How much higher is the manager's bonus if FIFO is adopted instead of LIFO?
After a successful year for your beach shop, you are wondering whether to open one more store this year. There are equal chances for the coming summer to be rainy or sunny. If the weather is sunny, you will earn $90,000 in profits per store. However, if the weather is rainy, your profit will be $60,000 if you open one store and zero if you open two stores. What is your expected profit under complete information? O A. $75,000 O B. $180,000 OC. $150,000 O D. $120,000
Instructions Consider an organization that has Earnings Before Tax of $100,000. Assume amortization expense for this organization is zero, and it is in the 30% tax bracket. Answer the following questions: 1. What is the cash flow? 2. Now assume amortization is $50,000. Does the cash flow change? If so, why and by how much? Requirements Your submission should include a single Microsoft Word document or pdf containing your response to the discussion question. S
Please explain and answer ALL questions. A,B, and C. Thank you.
3. What was the contribution toward fixed expenses and profits for each snowboard sold during the quarter? (Do not round intermediate calculations. Round your final answer to nearest whole dollar.) Contribution Answer is not complete. per snowboard 4. What would operating income be if only 3,400 snowboards were sold in a quarter? You can assume no change to fixed expenses will occur if sales decline to 3,400 snowboards. (Do not round intermediate calculations. Round your final answer to nearest whole dollar.) Operating income X Answer is not complete.
Please don't provide answer in image format thank you
You start a baking business,and your goal is to earn a profit of 250 in the first month. Your expenses in the first month are 155.What are your posible revenues that you can earn to meet your goal
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CVP: Before- and After-Tax Targeted Income Head-Gear Company produces helmets for bicycle racing. Currently, Head-Gear charges a price of $240 per helmet. Variable costs are $96.00 per helmet, and fixed costs are $1,158,000. The tax rate is 25 percent. Last year, 14,000 helmets were sold. Required: 1. What is Head-Gear's net income for last year? 2. What is Head-Gear's break-even revenue? In your computations, round the contribution margin ratio to two decimal places. 3. Suppose Head-Gear wants to earn before-tax operating income of $915,600. How many units must be sold? Round to the nearest whole unit. units 4. Suppose Head-Gear wants to earn after-tax net income of $665,100. How many units must be sold? In your computations, round dollar amounts to the nearest dollar. Round your final answer to the nearest whole unit. units 5. Suppose the income tax rate rises to 35 percent. How many units must be sold for Head-Gear to earn after-tax income of $670,020? Round to the nearest whole…

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