Problem 11-25A (Algo) Part 2 The instructor has offered to teach the course for a percentage of tuition fees. Specifically, she wants $250 per person attending the class. Assume that the tuition fee remains at $470 per student. f. Is the cost of instruction a fixed or a variable cost? g. Determine the profit, assuming that 20 students take the course. h. Determine the profit, assuming a 10 percent increase in enrollment (i.e., enrollment increases to 22 students). What is the percentage change in profitability? i. Determine the profit, assuming a 10 percent decrease in enrollment (i.e., enrollment decreases to 18 students). What is the percentage change in profitability?

Problem 11-25A (Algo) Part 2 The instructor has offered to teach the course for a percentage of tuition fees. Specifically, she wants $250 per person attending the class. Assume that the tuition fee remains at $470 per student. f. Is the cost of instruction a fixed or a variable cost? g. Determine the profit, assuming that 20 students take the course. h. Determine the profit, assuming a 10 percent increase in enrollment (i.e., enrollment increases to 22 students). What is the percentage change in profitability? i. Determine the profit, assuming a 10 percent decrease in enrollment (i.e., enrollment decreases to 18 students). What is the percentage change in profitability?

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

8 The company recorded $5,000 sales with 60% contribution margin ratio in 2019. According to the sales manager, the company can increase the sales volume by 30% this year if the company spends $400 as advertisement expense and decreases the selling price by 10%, while unit variable cost remains the same. If CEO approves the plan, how does it affect the net operating income in 2020? А. $150 Decrease В. $250 Decrease С. $110 Increase D. $250 Increase Е. $510 Increase
content area top Part 1 You have an outstanding student loan with required payments of $550 per month for the next years. The interest rate on the loan is 9% APR (compounded monthly). Now that you realize your best investment is to prepay your student loan, you decide to prepay as much as you can each month. Looking at your budget, you can afford to pay an extra $200 a month in addition to your required monthly payments of $550, or $750 in total each month. How long will it take you to pay off the loan? (Note: Be careful not to round any intermediate steps less than six decimal places.) Question content area bottom Part 1
Question 2 Capital University, a midsized university in a capital city recently received an offer from BrainTrust Teaching Services to teach all of the first year accounting courses at the university. There are currently 10 sections of 1st year accounting taught at Capital University. Cost per section are as follows: Description Cost Professors Classroom/building Teaching Assistants $20,000 $4,000 $2,000 Notes Half of these costs can be avoided by laying off staff This space can not be used for other purposes All costs can be avoided As well, it is estimated that fixed administrative costs are $1,000 per section. BrainTrust has proposed that they can teach all of the sections for a total cost of $105,000 Should Capital accept this special offer? (include both qualitative and quantitative analysis)
Business Math Worksheet 8.2: Installment loans-Amount Financed Name Background: An installment loan is repaid in several equal payments over a specified period of time. Usually, you make a down payment to cover a portion of the cash price of the item. The amount you finance is the portion of the cash price that you owe after making the down payment. Amount Financed = Cash Price - Down Payment Down Payment = Cash Price x Percent 1. Flora Quinton is buying a new air compressor for her auto repair shop. It sells for $1,299. She makes a down payment of $199 and finances the remainder. How much does she finance? 2. Beatriz Ruiz is buying new office furniture. It sells for a cash price of $2,358.60. The down payment is $200.00. What is the amount financed 3. An office remodeling project costs $15,880. If you pay $3,680 towards the project, how much do you finance?
21-Suppose you have attended an interview in Sohar SAOG, and the interviewer provide you the following information. and asked you to find out the profit. Given information are; Sales OMR 30000, Fixed expenses OMR 8000, Breakeven point OMR 18,000. Find out the profit at the given sales level. a. OMR 10000 b. OMR 12000 c. None of the given options d. OMR 5500
QUESTION 9 You plan on starting a lawn mowing business by investing $700 of your own money and purchase $500 of equipment. You plan to work 260 hours per month and charge your customers $22 per hour. Your anticipated costs include: Depreciation Advertising Gas Assistant's Wages Miscellaneous Expenses $25.00 per month $26.00 per month $1.20 per hour $8.00 per hour $20.00 per month Calculate your Variable cost per hour on the budgeted contribution margin income statement. 1
QUESTION 8 Grass is Greener, Inc., plans to charge its customers by the hour and to work 350 hours at $16 per hour. It expects its variable costs to be $6 per hour and fixed costs to be $600. Calculate the number of hours needed to earn $1,800 in operating income? (Round to the nearest hour)
es E6-5 (Algo) Calculating Contribution Margin and Contribution Margin Ratio; Identifying Break-Even Point, Target Profit [LO 6-1, 6-2] Sandy Bank, Incorporated, makes one model of wooden canoe. Partial information is given below. Required: 1. Complete the following table. 2. Suppose Sandy Bank sells its canoes for $600 each. Calculate the contribution margin per canoe and the contribution margin ratio. 3. This year Sandy Bank expects to sell 810 canoes for $600 each. Prepare a contribution margin income statement for the company. 4. Calculate Sandy Bank's break-even point in units and in sales dollars. Sandy Bank sells its canoes for $600 each. 5. Suppose Sandy Bank wants to earn $82,000 profit this year. Calculate the number of canoes that must be sold to achieve this target. Sandy Bank sells its canoes for $600 each. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Complete the following table. Note: Round your "Cost per…
222 Chapter5 PROBLEM 4: MULTIPLE CHOICE- COMPUTATIONAL Mr. Juan, an employee, has a pay rate of P125 per hour, with time and a half for hours worked in excess of 40 during a week. If Mr. Juan works 60 hours during a week and has weekly deductions for SSS at a rate of 6%, PhilHealth at a rate of 1.5%, Pag-IBIG at P25, and withholding tax of 15% on salary after deductions of the required contributions, how much is Mr. Juan's net pay for the week? 1. a. 5,876 b. b. 6,757 c. 6,858 d. d. 7,023 С. Th
13. Problem 5.26 (PV and Loan Eligibility) eBook You have saved $3,000 for a down payment on a new car. The largest monthly payment you can afford is $300. The loan will have a 12% APR based on end-of-month payments. What is the most expensive car you can afford if you finance it for 48 months? Do not round intermediate calculations. Round your answer to the nearest cent. $ What is the most expensive car you can afford if you finance it for 60 months? Do not round intermediate calculations. Round your answer to the nearest cent. $
Question 13 Lightview produces and sells overhead projectors to schools and colleges. Each overhead projector uses $27 of materials and requires 3 hours of labor at $10 per hour. Each overhead projector sells for $85. Lightview has fixed overheads of $227930. What is Lightview's break-even point in sales units? Round your answer to 2 decimal places.