←Bridget Logue is getting ready to open a small restaurant. She is on a tight budget and must choose between thefollowing long-distance phone plans:(Click the icon to view the long-distance phone plans.)Read the requirements.Requirement 1. Match the graphs to the total monthly costs of the three plans for different levels ofmonthly long-distance calling.Before we match the graphs to the plans, complete the following table, calculating the total costs for each plan ateach of the different minute levels. (Round to the nearest cent.)PlanABC100 minutes 340 minutes 540 minutes e thisKBridget Logue is getting ready to open a small restaurant. She is on a tight budget and must choose betfollowing long-distance phone plans:Data tablePlan A: Pay $0.08 per minute of long-distance calling.Plan B:Pay a fixed monthly fee of $17 for up to 340 long-distance minutes and$0.05 per minute thereafter (if she uses fewer than 340 minutes inany month, she still pays $17 for the month).Plan C: Pay a fixed monthly fee of $24 for up to 520 long-distance minutes and$0.03 per minute thereafter (if she uses fewer than 520 minutes, she stillpays $24 for the month).PrintDone- Xent levels oftal costs for each plCheck answ

The fixed costs remain the same even if the company achieves different activity levels. The…

Answered: Bridget Logue is getting ready to open…

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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José Ruiz starts a company that makes handcrafted birdhouses. Competitors sell a similar birdhouse for $245 each. José believes he can produce a birdhouse for a total cost of $200 per unit, and he plans a 25% markup on total cost. (a) Compute José's planned selling price. (b) Is José's price lower than competitors' price? Complete this question by entering your answers in the tabs below. Required A Required B Compute José's planned selling price. Selling price E per unit Required A Required B >
Joey Bag-o-donuts owns an ice cream shop. Looking at last year's utility bills, the highest utility bill was $4000 for 2000 machine hours. The lowest utility bill was $2500 for 1200 machine hours. Calculate the variable rate per machine hour and the total fixed utility cost. Show the equation for determining total utility costs. If Joey plans on using 1500 machine hours, what will the total utility bill be using the equation in part 2.
Joyce Murphy runs a courier service in downtown Seattle. She charges clients $0.54 per mile driven. Joyce has determined that if she drives 3,200 miles in a month, her total operating cost is $829. If she drives 5,900 miles in a month, her total operating cost is $1,153. Joyce has used the high-low method to determine that her monthly cost equation is total monthly cost = $445 $0.12 per mile driven. Required: 1. Determine how many miles Joyce needs to drive to break even. 2. Calculate Joyce's degree of operating leverage if she drives 6,100 miles. 3. Suppose Joyce took a week off and her sales for the month decreased by 23 percent. Using the degree of operating leverage, calculate the effect this will have on her profit for that month
You are not ready to open a brick-and-mortar bakery but you think you can handle catering. You have received your first 4 orders. Use the following schedule to determine how much of each raw material you need to use for each dozen cupcakes. It takes you 60 minutes to mix, bake, cool, and ice two dozen cupcakes and you pay yourself $15 per hour. You can only cook two dozen cupcakes at one time. You have also determined that your overhead per dozen is $2.75. You charge $17.00 for each dozen. Selling Price per Material Unit size Pounds per dozen Cost per pound $17 Dozen Cupcakes Flour pound pound 0.5 2.50 Butter 0.25 1.00 Sugar pound 0.5 2.00 Eggs dozen 0.17 2.00 gallon gallon pound pound Milk 0.1 0.1 3.00 Vanilla 0.25 6.00 Cocoa Powder 0.25 4.00 Vanilla Icing Chocolate Icing 0.75 1.50 pound 0.75 1.50 Bakery box each 1 0.50 Job #1 Job #2 Job #3 Job #4 Four dozen chocolate cupcakes with chocolate icing One dozen vanilla cupcakes with chocolate icing Three dozen chocolate cupcakes with…
Analyze Cityscape Hotels Cityscape Hotels has 200 rooms available in a major metropolitan city. The hotel is able to attract business customers during the weekdays and leisure customers during the weekend. However, the leisure customers on weekends occupy fewer rooms than do business customers on weekdays. Thus, Cityscape plans to provide special weekend pricing to attract additional leisure customers. A hotel room is priced at $180 per room night. The cost of a hotel room night includes the following: Line Item Description Cost Per Room Night(at normal occupancy) Housekeeping service $23 Utilities 7 Amenities 3 Hotel depreciation 55 Hotel staff (excluding housekeeping) 42 Total $130 The special weekend price is proposed for $120 per room night. At this price, it is anticipated that average occupancy for the weekend (Friday, Saturday, and Sunday) will increase from 30% to 50% of available rooms. Question Content Area a. What is the contribution margin for a…
Bridget Cheungis getting ready to open a small restaurant. She is on a tight budget and must choose between the following long- Plan A: Pay $0.07 per minute of long-distance calling. Plan B: Pay a fixed monthly fee of $14 for up to 280 long-distance minutes and $0.05 per minute thereafter (if she uses fewer than 280 minutes in any month, she still pays $14 for the month). Plan C: Pay a fixed monthly fee of $23 for up to 440 long-distance minutes and $0.04 per minute thereafter (if she uses fewer than 440 minutes, she still pays $23 for the month). 1. Match the graphs to the total monthly costs of the three plans for different levels of monthly long-distance calling. 2. Which plan should Cheung choose if she expects to make 100 minutes of long-distance calls? 280 minutes? 480 minutes? Requirement 1. Match the graphs to the total monthly costs of the three plans for different levels of monthly long-distance calling. Before we…
Tupper Inc. and Victory Inc. are two small clothing companies that are considering leasing a dyeing machine together. The companies estimated that in order to meet production, Tupper needs the machine for 950 hours and Victory needs it for 700 hours. If each company rents the machine on its own, the fee will be $85 per hour of usage. If they rent the machine together, the fee will decrease to $80 per hour of usage. Read the requirements. Requirements 1. Calculate Tupper's and Victory's respective share of fees under the stand-alone cost-allocation method. 2. Calculate Tupper's and Victory's respective share of fees using the incremental cost-allocation method assuming (a) Tupper ranked as the primary party and (b) Victory ranked as the primary party. 3. Calculate Tupper's and Victory's respective share of fees using the Shapley value method. 4. Which method would you recommend Tupper and Victory use to share the fees? - X
Amora is one of your best friends. She keeps complaining that she runs out of money each month before she gets paid. She's asked you to help her make a budget based on her income from her part-time job. She handed you a crumpled paper with the following record of her expenditures for last month. Before you help her make a budget, first help her balance her monthly transactions by filling in the last column on the table below. To obtain the balance, add income and subtract expenditures and withdrawals. Date Transaction Expenditure Income or Balance Paycheck-Direct Deposit |ATM cash + fee Movie and soft drink Transportation $268.43 -$21.50 2/1 2/1 $17.85 $20.00 $45.00 $53.47 2/1 2/3 2/5 Hairdresser 2/10 Old Navy clothes ATM cash Jewelry Transportation 2/12 -$60.00 2/15 $36.00 $15.00 2/19
Use the following information to complete Short Exercises S20-16 and S20-17. Wild Waters Swim Park sells individual and family tickets. With a ticket, each person receives a meal, three beverages, and unlimited use of the swimming pools. Wild Water's has the following ticket prices and variable costs for 2018: Wild Waters expects to sell one individual ticket for every four family tickets. Wild Waters’s total fixed costs are $27,500. Calculating breakeven point for two products For 2019, Wild Waters expects a sales mix of four individual tickets for every one family ticket. Requirements Compute the new weighted-average contribution margin per ticket. Calculate the total number of tickets Wild Waters must sell to break even. Calculate the number of individual tickets and the number of family tickets the company must sell to break even.
Each Section should be completed in a separate spreadsheet tab and all calculations should be performed using Excel formulas: You graduated from college and landed a new job that will start in a couple of weeks. You need to purchase a car to commute to and from your new place of employment. You have decided to buy a car that costs $40,000, and will make a $5,000 down payment, resulting in the need to take out a $35,000 loan with a 5% annual interest rate that you will pay off in equal monthly installments over the next 5 years (60 months). Calculate and provide the following information: a) Calculate the monthly payment on the car loan. b) Prepare an amortization table for the car loan that provides separate columns for the following for each month of the car loan: Beginning loan balance; total payment amount, amount of monthly payment allocated to interest; amount of monthly payment allocated to the principal balance; and ending loan balance. (Your amortization table is likely…
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Russell Preston delivers parts for several local auto parts stores. He charges clients $0.75 per mile driven. Russell has determined that if he drives 3,480 miles in a month, his average operating cost is $0.55 per mile. If he drives 4,640 miles in a month, his average operating cost is $0.50 per mile. Russell has used the high-low method to determine that his monthly cost equation is total cost = $696 + $0.35 per mile. Required: 1. Determine how many miles Russell needs to drive to break even. 2. Assume Russell drove 2,040 miles last month. Without making any additional calculations, determine whether he earned a profit or a loss last month. 3. Determine how many miles Russell must drive to earn $1,000 in profit. 4. a. Prepare a contribution margin income statement assuming Russell drove 2,040 miles last month. b. Use the information provided in Req 4a to calculate Russell's degree of operating leverage. Complete this question by entering your answers in the tabs below. Req 1 Req 2…

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