Homework Help is Here – Start Your Trial Now!
Business
Finance
Cortex Business Solutions operates a trading partner network that allows firms to digitize their customer invoicing. Cortex focuses exclusively on North American Oil & Gas firms, which it calls “buyers." When a buyer signs onto the network, all of its suppliers are included in the network. Cortex generates recurring revenue primarily through a fee charged for each supplier invoice processed through the network. Sales are forecasted on the basis of transactions processed through the network, or "Billable Transactions." Thus, Sales #Billable Transactions x Price. = Last year, the average price was $2.18 per transaction. Billable transactions are modelled as follows: Billable transactions = #Buyers x #Suppliers per Buyer x #Transactions Where #Buyers = the number of oil and gas companies using the network #Suppliers per buyer = the average number of suppliers per buyer #Transactions = the average number of transactions per buyer-supplier pair Last year, there were 75 buyers on the network, each buyer had an average of 110 suppliers and the average supplier processed 553 invoices. Forecast sales for next year assuming that the number of buyers rises by 10% and the price per billable rises by 3%. (Assume that the average number of suppliers and transactions per supplier stay constant.)

Cortex Business Solutions operates a trading partner network that allows firms to digitize their customer invoicing. Cortex focuses exclusively on North American Oil & Gas firms, which it calls “buyers." When a buyer signs onto the network, all of its suppliers are included in the network. Cortex generates recurring revenue primarily through a fee charged for each supplier invoice processed through the network. Sales are forecasted on the basis of transactions processed through the network, or "Billable Transactions." Thus, Sales #Billable Transactions x Price. = Last year, the average price was $2.18 per transaction. Billable transactions are modelled as follows: Billable transactions = #Buyers x #Suppliers per Buyer x #Transactions Where #Buyers = the number of oil and gas companies using the network #Suppliers per buyer = the average number of suppliers per buyer #Transactions = the average number of transactions per buyer-supplier pair Last year, there were 75 buyers on the network, each buyer had an average of 110 suppliers and the average supplier processed 553 invoices. Forecast sales for next year assuming that the number of buyers rises by 10% and the price per billable rises by 3%. (Assume that the average number of suppliers and transactions per supplier stay constant.)

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter6: Process Costing
Section: Chapter Questions
Problem 35P: Hepworth Credit Corporation is a wholly owned subsidiary of a large manufacturer of computers....
See similar textbooks
icon
Related questions
Question

Please help me with this, i can understand

Cortex Business Solutions operates a trading partner network that allows firms to digitize their customer invoicing. Cortex focuses exclusively on North American Oil & Gas firms, which it calls “buyers." When a buyer signs onto the network, all of its suppliers are included in the network. Cortex generates recurring revenue primarily through a fee charged for each supplier invoice processed through the network. Sales are forecasted on the basis of transactions processed through the network, or "Billable Transactions." Thus, Sales #Billable Transactions x Price. = Last year, the average price was $2.18 per transaction. Billable transactions are modelled as follows: Billable transactions = #Buyers x #Suppliers per Buyer x #Transactions Where #Buyers = the number of oil and gas companies using the network #Suppliers per buyer = the average number of suppliers per buyer #Transactions = the average number of transactions per buyer-supplier pair Last year, there were 75 buyers on the network, each buyer had an average of 110 suppliers and the average supplier processed 553 invoices. Forecast sales for next year assuming that the number of buyers rises by 10% and the price per billable rises by 3%. (Assume that the average number of suppliers and transactions per supplier stay constant.)
Transcribed Image Text:Cortex Business Solutions operates a trading partner network that allows firms to digitize their customer invoicing. Cortex focuses exclusively on North American Oil & Gas firms, which it calls “buyers." When a buyer signs onto the network, all of its suppliers are included in the network. Cortex generates recurring revenue primarily through a fee charged for each supplier invoice processed through the network. Sales are forecasted on the basis of transactions processed through the network, or "Billable Transactions." Thus, Sales #Billable Transactions x Price. = Last year, the average price was $2.18 per transaction. Billable transactions are modelled as follows: Billable transactions = #Buyers x #Suppliers per Buyer x #Transactions Where #Buyers = the number of oil and gas companies using the network #Suppliers per buyer = the average number of suppliers per buyer #Transactions = the average number of transactions per buyer-supplier pair Last year, there were 75 buyers on the network, each buyer had an average of 110 suppliers and the average supplier processed 553 invoices. Forecast sales for next year assuming that the number of buyers rises by 10% and the price per billable rises by 3%. (Assume that the average number of suppliers and transactions per supplier stay constant.)
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Pkg Acc Infor Systems MS VISIO CD
Pkg Acc Infor Systems MS VISIO CD
Finance
ISBN:
9781133935940
Author:
Ulric J. Gelinas
Publisher:
CENGAGE L
Financial Accounting
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Financial Reporting, Financial Statement Analysis…
Financial Reporting, Financial Statement Analysis…
Finance
ISBN:
9781285190907
Author:
James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS