During March, Pipestem Resort budgeted for 27,000 customers, but actually served 25,000 customers. The companyuses the following revenue and cost formulas in its budgeting, where q is the number of customers served:Revenue: $4.82qWages and salaries: $35,200 + $1.73qSupplies: $0.63qInsurance: $12,200Miscellaneous expense: $5,200 + $0.13qThe company wants to prepare a flexible budget for March based on the actual level of activity for the month.Based on the information above, calculate total revenue for the month ended March 31.Based on the information above, calculate total expenses for the month ended March 31.Based on the information above, calculate net operating income for the month ended March 31.

To prepare a flexible budget for March based on the actual level of activity (25,000 customers), we…

Answered: During March, Pipestem Resort budgeted…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Similar questions

The operating budget of the Western Robotics Company was $300 million last year. If the operating budget this year is 12 percent less than last year, what is this year’s operating budget? Answer $_______ million.
For the cost and price functions below, find a) the number, q, of units that produces maximum profit; b) the price, p, per unit that produces maximum profit; and c) the maximum profit, P. C(q) = 90+12q; p= 64-2q a) The number, q, of units that produces maximum profit is q = b) The price, p, per unit that produces maximum profit is p=$ c) The maximum profit is P = $.
2) Indicate the type of cost which is not variable cost: a) Workers' wage. b) Material used in production. c) Accountant salary. d) Electricity consumed by the engine. 3) The relationship between price and demand can be expressed as a linear function. a) True b) False
For the cost and price functions below, find a) the number, q, of units that produces maximum profit; b) the price, p, per unit that produces maximum profit; and c) the maximum profit, P. C(q) = 70+ 14q; p = 70-2q a) The number, q, of units that produces maximum profit is q = b) The price, p, per unit that produces maximum profit is p = $ c) The maximum profit is P = $
Actual labor cost (payroll) for $ 20,000 June Labor rate variance $ 4,000 favorable Labor efficiency variance. $ 2,400 unfavorable Actual direct labor hours 1,000 worked (AQ) Total standard direct labor cost for the output in June (to the nearest dollar) was:
The weekly demand for the LectroCopy photocopying machine is given by the equation p=2000-.04x where P debates the wholesale unit price
A store had monthly utility expense of $21,644. Determine the share for Department 1 (rounded to the nearest dollar), based on floor space for each department as follows: Department Floor Space Dept1: 75,000 sq ft Dept2: 55,000 sq ft Dept3: 37,000 sq ft Dept4: 48,000 sq ft
Which of these is true? Budgeted fixed factory overheads = Budgeted overheads per unit x actual volume Budgeted fixed factory overheads = Budgeted overheads per unit x standard volume Budgeted factory overheads = Budgeted fixed overheads per unit x budgeted volume + actual variable overheads Budgeted factory overheads = Budgeted fixed overheads per unit x standard volume + budgeted variable overheads None of the above
The owner of Tommy's Technicians has found that his shop is losing money and he is in jeopardy of going out of business. Sales have remained constant for quite some time and now he is looking at ways to cut expenses to stay in business. Which of the following expenses is his best choice to try to immediately reduce and save him meaningful dollars so he can remain in business? (Hint: First consider which ones he has ultimate control over?) Rent expense Utilities expense Payroll expense Shop insurance expense Advertising expense
Which of the following statements about the precept of costs, value and price is CORRECT? Cost is equal to value and value is not equal to price (cost = value ≠ price) Cost is not equal to value and value is not equal price (cost ≠ value ≠ price) Cost is equal to value and value is equal price (Cost = value = price) Cost is not equal to value and value is equal to price (cost ≠ value = price)
Economics Question
"A taxi company currently has nine cabs in its fleet, and its total daily cost is $4,000. If the company added a 10th cab, its daily total cost would be $4,200, or $420 per cab. Adding the 10th cab will increase the daily total revenue by $300. Should the company add the 10th cab? (Yes/No)"

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