Mr.Matsura is a famous motivational speaker. He travels across the country by jet and gives an average of nine presentations a week. He gives his speeches in auditoriums that are always full and hold an average of 2500 people each. He charges $20 per person at each of these speeches. His average expenses for each presentation, including renting the auditorium, are about $13,000. The cost of meals, motels, jet travel, and support personnel total $75,000 per week. How many weeks will Mr.Matsura need to travel if he wants to earn $516,000 per year?
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- Phoenix was a professional classical guitar player until a motorcycle accident left him disabled. After long months of therapy, he hired an experienced luthier and started a small shop to make and sell Spanish guitars. The guitars sell for $705,and the fixed monthly operating costs are as follows: Rent and utilities $810 Wages and benefits to luthier $2,510 Other expenses $480 Phoenix's accountant told him about contribution margin ratios, and Phoenix understood clearly that for every dollar of sales, $0.60 went to cover his fixed costs, and anything above that point was profit. Phoenix is planning to increase the sales price to $760. What impact will the increase in sales price have on the contribution margin ratio?The orthopods & the radiologistSuppose that there are ten orthopaedic surgeons that have their private consultation rooms in a shared facility. Currently each earns $20,000 per month and pays $10,000 per month towards the operating expenses of the joint facility.A world renowned radiologist has just moved to town and is deliberating over where to set-up his practice. If he goes it alone he will earn $300,000 per month and will have to incur a monthly operating cost of $100,000. On the other hand, the orthopods have calculated that if they were to accommodate him in their existing facility, their total operating costs would increase from $100,000 to $120,000 per month, but each individual practice will increase its revenues from $20,000 to $50,000 per month. Moreover, they have convinced the radiologist, that his practice will also increase revenues from patients by $20,000 per month.Assuming that the 10 orthopods have chosen a representative to negotiate with the radiologist (so…Mary Smith is the owner and manager of a small bakery, “Mary’s Cookies”, which is known for its special gigantic almond-chocolate chip cookies. She has been offered a job by Cookie Monster, Inc., to come to work for them at $110,000 per year. Currently, she is producing her own cookies and she has revenues of $260,000 per year. Her costs are $10,000 for rent, $35,000 for ingredients, $5,000 for utilities, and $80,000 for wages, including $40,000 for Mary in concept of manager’s salary. She has $100,000 of her own money invested in the operation, which if she leaves, can be sold for $40,000 that she can invest at 8.2% per year. Using this information, calculate: Accounting profits = $ Economic profits = $ If instead, Mary pays herself no salary: Accounting profits = $ Economic profits = $
- Elliott, Inc., has four salaried clerks to process purchase orders. Each clerk is paid a salary of$25,750 and is capable of processing as many as 6,500 purchase orders per year. Each clerk usesa PC and laser printer in processing orders. Time available on each PC system is sufficient toprocess 6,500 orders per year. The cost of each PC system is $1,100 per year. In addition to thesalaries, Elliott spends $27,560 for forms, postage, and other supplies (assuming 26,000 purchaseorders are processed). During the year, 25,350 orders were processed.Required:1. Classify the resources associated with purchasing as (1) flexible or (2) committed.2. Compute the total activity availability, and break this into activity usage and unused activity.3. Calculate the total cost of resources supplied (activity cost), and break this into the cost ofactivity used and the cost of unused activity.4. (a) Suppose that a large special order will cause an additional 500 purchase orders. Whatpurchasing costs are…Elliott, Inc., has four salaried clerks to process purchase orders. Each clerk is paid a salary of $25,750 and is capable of processing as many as 6,500 purchase orders per year. Each clerk uses a PC and laser printer in processing orders. Time available on each PC system is sufficient to process 6,500 orders per year. The cost of each PC system is $1,100 per year. In addition to the salaries, Elliott spends $27,560 for forms, postage, and other supplies (assuming 26,000 purchase orders are processed). During the year, 25,350 orders were processed. Required: 1. Which of the resources associated with purchasing can be classified as flexible resources? Forms, Postage and Supplies Which of the resources associated with purchasing can be classified as committed resources? PC system and clerks 2. Compute the total activity availability, and break this into activity usage and unused activity. Activity availability: fill in the blank 3 purchase orders Activity usage: fill in the blank…Elliott, Inc., has four salaried clerks to process purchase orders. Each clerk is paid a salary of $25,750 and is capable of processing as many as 6,500 purchase orders per year. Each clerk uses a PC and laser printer in processing orders. Time available on each PC system is sufficient to process 6,500 orders per year. The cost of each PC system is $1,100 per year. In addition to the salaries, Elliott spends $27,560 for forms, postage, and other supplies (assuming 26,000 purchase orders are processed). During the year, 25,350 orders were processed. REQUIRED: 1. Classify the resources associated with purchasing as (1) flexible or (2) committed. 2. Compute the total activity availability, and break this into activity usage and unused activity. 3. Calculate the total cost of resources supplied (activity cost), and break this into the cost of activity used and the cost of unused activity. (a) Suppose that a large special order will cause an additional 500 purchase orders. What purchasing…
- Ajax was a professional classical guitarist until a motorcycle accident left him disabled. After long months of therapy, he hired an experienced luthier and started a small shop to make and sell Spanish guitars. The guitars sell for $700, and the fixed monthly operating costs are as follows: Rent and utilities $700 Wages and benefits to luthier 2,400 Other expenses 483 Ajax's accountant told him about contribution margin ratios, and Ajax understood clearly that for every dollar of sales, $0.70 went to cover his fixed costs, and anything above that point was profit. How many guitars does Ajax need to sell each month to break even? (Round your answer up to the nearest whole guitar.) A. 6 guitars B. 8 guitars C. 7 guitars D. 3 guitarsColin was a professional classical guitar player until his motorcycle accident that left him disabled. After long months of therapy, he hired an experienced luthier (maker of stringed instruments) and started a small shop to make and sell Spanish guitars. The guitars sell for $700 and the fixed monthly operating costs are as follows: Rent and utilities $1,000 Wages and benefits to luthier 2,500 Other expenses 481 Colin's accountant told him about contribution margin ratios and he understood clearly that for every dollar of sales, $0.60 went to cover his fixed costs, and that anything past that point was pure profit. What is the amount of revenue Colin should earn each month to break even? Colin wishes to earn $5,100 of operating profit each month. Calculate the amount of sales revenue required to achieve the target profit.) Charli was a professional classical guitar player until his motorcycle accident that left him disabled. After long months of therapy, he hired an experienced luthier (maker of stringed instruments) and started a small shop to make and sell Spanish guitars. The guitars sell for $700 and the fixed monthly operating costs are as follows: Rent and utilities $1,210 Wages and benefits to luthier 2,500 Other expenses 480 Charli's accountant told him about contribution margin ratios and he understood clearly that for every dollar of sales, $0.65 went to cover his fixed costs, and that anything past that point was pure profit. Charli wishes to earn $4,000 of operating profit each month. Calculate the number of guitars Colin will have to sell to achieve the target profit.
- Fred Flingstone operates a French Fries stand at the local flee market that operates for 8 weekends through the summer. The market vendor fee is $50 per weekend, his vendor insurance is $376 for the summer and he has committed to paying a helper $150 per weekend. His variable costs are $1.58 per French Fries (This includes the cost of napkins, ketchup and salt). He plans to sell the fries for $3.50 each and he knows from experience that he can make a maximum of 200 fries each weekend. a) How many fries does he have to sell per week to break even? b) On one weekend he gets sick and cannot get to the market? What is his net loss for that weekend? c) Another french fries vendor at the market sells fries for $3.10 each. How many fries would Fred have to sell in summer at this price to break even assuming none of his costs change? d) How much would he have to change the variable costs (assuming original fixed costs) to maintain his original break even point if he sold fries at $3.00?The Inn occasionally hires Maria Sostenuto, a local pianist, to entertain the guests during theevening while they chat by the fireplace in the Grand Room. Maria charges $300 perapprearance plus $30 per hour.1. If Maria plays for three hours, what would be:the total cost to the Inn?the average cost per hour?2. If the Inn manager wants Maria to stay for a fourth hour, what would be:the cost of the fourth hour (the marginal cost)?the total cost to the Inn?the average cost per hour?3. Explain why the average cost is an unimportant calculation in this situation.Owens sells computers. He purchases the computers for $460 each and incurs $6,000 in fixed operating expenses each month. The average cost per unit is a. $520 if owens make and sells 100 units of product b. $580 if owens make and sells 50 units of product c. $700 if owens make and sells 25 units of product d. all the answers are correct