Fuzhou Spa is considering adding one of two services, seaweed body wraps or hot stone massages. Theseaweed body wrap will result in additional revenues of $500 and costs of $100. The hot stone massages willresult in additional revenues of $500 and costs of $300.The relevant (s)pieces of information in this decision is (are)Select one:all the information is relevantnone of the information is relevantthe additional coststhe additional revenues

The revenue is defined as the total income a business receives from selling a good or service to its…

Answered: Fuzhou Spa is considering adding one of…

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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A particular university was considering whether to offer a seminar for executives. The tuition would be USD 650 per person. Variable costs, including meals, parking, and materials, would be USD 80 per person. Certain costs of offering the seminar, including advertising, instructors' fees, room rent, and audiovisual equipment rent, would not be affected by the number of people attending. Such costs, which could be thought of as fixed costs, amounted to USD 8,000 for the seminar. If the University wants to have a profit of USD 7,000, how much revenue should they expect ? Round off your answer two decimal places. 20 15 14 none of these
Can this be solved by hand and what are the formulas?
Air Americo is about to introduce a daily round-trip flight from New York to Los Angeles and is determining how to price its round-trip tickets. The market research group at Air Americo segments the market into business and pleasure travelers. It provides the following information on the effects of two different prices on the number of seats expected to be sold and the variable cost per ticket, including the commission paid to travel agents: Price Charged Variable Costs per Ticket # of Seats Expected to be Sold Business Pleasure 800 2,100 75 300 150 185 285 30 Pleasure travelers start their travel during one week, spend at least I weekend at their destination, and return the following week or thereafter. Business travelers usually start and complete their travel within the same workweek. They do not stay over weekends. Assume that round-trip fuel costs are fixed costs of $24,500 and that fixed costs allocated to the round-trip flight for airplane-lease costs, ground services, and…
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Cindy Jo's Hair Salon is concerned about its rising costs of supplies, energy, and labor, so it is considering investing in better equipment, which hopefully will reduce the time required to perform most hairstyles as well as result in better perceived quality by its customers. It predicts that the added investment will increase output levels as well as reduce energy costs, since some of the new equipment (hair dryers) use less electricity. Inputs and Outputs Hairstyles per week Current (this year) 290 Expected (next year) 340 $950 $990 $400 $345 $340 $0 $365 $15,000 Labor costs per week Energy costs per week Material costs per week Capital investment Using the given information, determine the current and expected single-factor and total productivity measures. Do not round intermediate calculations. Round your answers to three decimal places. Productivity Labor Energy Material Total Current (this year) haircuts/dollar haircuts/dollar haircuts/dollar haircuts/dollar Expected (next year)…
Based on the information provided above which option should you take if any? Explain. Note:(*) Result = sales - costs. These costs do not include the cost of an option. (**) You can ́t launch loyalty card and cut prices at the same time.
Shack Homebuilders Limited is evaluating a new promotional campaign that could increase home sales. Possible outcomes and probabilities of the outcomes are shown next. Possible Outcomes Ineffective campaign Normal response Extremely effective Additional Sales in Coefficient of variation Units 70 80 140 Probabilities 0.40 0.20 0.40 Compute the coefficient of variation. Note: Do not round intermediate calculations. Round your answer to 3 decimal places.
NEED ASAP with a complete solution! A particular university was considering whether to offer a seminar for executives. The tuition would be USD 650 per person. Variable costs, including meals, parking, and materials, would be USD 80 per person. Certain costs offering the seminarIncluding advertising, instructors' fees, room rent, audiovisual equipment rent would not be affected by the number of people attending Such costs. which could be thought of as fixed costs amounted to USD 8,000 for the seminar. • Given this information. If the school wanted at least to break even on this program, how many students should they expect to attend? a) 15 b) 14 c) 20
Coronado Makeup produces face cream. Each bottle of face cream costs $12 to produce and can be sold for $13. The bottles can be sold as is, or processed further into sunscreen at a cost of $14 each. Coronado Makeup could sell the sunscreen bottles for $23 each. What should Coronado Makeup do? Face cream must be further processed because it increases operating income by $1 each. O Face cream must not be further processed because incremental revenue is less than incremental processing costs. O Face cream must be further processed because its operating income is $9 each. Face cream must not be further processed because it decreases operating income by $3 each.
Mohave Corporation is considering eliminating a product from its Sand Trap line of beach umbrellas. This collection is aimed at people who spend time on the beach or have an outdoor patio near the beach. Two products, the Indigo and Verde umbrellas, have impressive sales. However, sales for the Azul model have been dismal. Mohave's information related to the Sand Trap line is shown as follows. Segmented Income Statement for Mohave's Sand Trap Beach Umbrella Products Indigo $ 60,000 34,000 $ 26,000 1,900 $ 24,100 17,840 $ 6,260 Sales revenue Variable costs. Contribution margin Less: Direct fixed costs Segment margin Common fixed costs* Net operating income (loss) *Allocated based on total sales revenue Mohave determined that eliminating the Azul model would cause sales of the Indigo and Verde models to increase by 10 percent and 15 percent, respectively. Variable costs for these two models would increase proportionately. Although the direct fixed costs could be eliminated, the common…
Conrad Coding Institute (CCI) offers online courses in coding. One of CCI's most popular courses is the introductory course that teaches basic coding skills. CCI prices this course aggressively, because of the potential for creating demand for the more advanced (and more profitable) courses. The Introductory coding course has the following price and cost characteristics: Tuition Variable costs (instruction, support, and so on) Fixed costs (advertising, salaries, and so on) Required: 4. Suppose that fixed costs for the year are 15 percent lower than projected, whereas variable costs per swuent are 15 percent higher than projected. What would be the operating profit/loss for the Introductory coding course for the year? Complete this question by entering your answers in the tabs below. Req A Req B Operating profit Req C1 Req C2 $ 65 per student 40 per student 180,000 per year Req C3 Show less

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