"It's close to a $40,000 loser and we ought to devote our efforts elsewhere," noted Cindy Mires, after reviewing financial reports of her company's attempt to offer a reduced-price daycare service to employees. The daycare's financial figures for the year just ended follow. Revenues Variable costs Traceable fixed costs Allocated corporate overhead $120,000 Required: 45,000 89,000 24,000 If the daycare service/center is closed, 70% of the traceable fixed cost will be avoided. In addition, the company will incur one-time closure costs of $6,800. A. Show calculations that support Mires' belief that the daycare center lost almost $40,000. ort your answer

"It's close to a $40,000 loser and we ought to devote our efforts elsewhere," noted Cindy Mires, after reviewing financial reports of her company's attempt to offer a reduced-price daycare service to employees. The daycare's financial figures for the year just ended follow. Revenues Variable costs Traceable fixed costs Allocated corporate overhead $120,000 Required: 45,000 89,000 24,000 If the daycare service/center is closed, 70% of the traceable fixed cost will be avoided. In addition, the company will incur one-time closure costs of $6,800. A. Show calculations that support Mires' belief that the daycare center lost almost $40,000. ort your answer

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Please Do not Give image format
Please do not give solution in image format and show all calculation thanku
Please do not give solution in image format thanku
Dog
As an analyst at Delta Air Lines, you are asked to help the operations staff. Operations has identified a new method of loading baggage that is expected to result in a 35 percent reduction in labor time but no changes in any other costs. The current labor cost to load bags is $3 per bag. Other costs are $2 per bag. Required: a-1. What differential costs should the operations staff consider for the decision to use the new method next year? a-2. What would be the cost savings per bag using it? b. How would management use the information in requirement (a) and any other appropriate information to proceed with the contemplated use of the new baggage loading method? What would be the cost savings per bag using it? Note: Round your answer to 2 decimal places. Cost savings per bag
Please do not give solution in image format thanku
After reviewing financial reports of her company's daycare service, Camila determines it should be closed due to a loss. Revenues $120195 Variable costs $47953 Traceable (avoidable) fixed costs $70095 Allocated corporate overhead $45995 What would be the impact to net income of closing the daycare? State loss as negative, gain as positive. Round only your final answer to the nearest dollar.
A.4
not use ai please
Due to erratic sales of its sole product—a high-capacity battery for laptop computers—PEM, Incorporated, has been experiencing financial difficulty for some time. The company’s contribution format income statement for the most recent month is given below: Sales (13,200 units × $20 per unit) $ 264,000 Variable expenses 132,000 Contribution margin 132,000 Fixed expenses 147,000 Net operating loss $ (15,000) Required: 1. Compute the company’s CM ratio and its break-even point in unit sales and dollar sales. 2. The president believes that a $6,800 increase in the monthly advertising budget, combined with an intensified effort by the sales staff, will increase unit sales and the total sales by $86,000 per month. If the president is right, what will be the increase (decrease) in the company’s monthly net operating income? 3. Refer to the original data. The sales manager is convinced that a 10% reduction in the selling price, combined with an increase of $31,000 in the…