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- Orlando Clinic has fixed costs of $800,000, a variable cost per visit of $60, and revenue per visit of $100. For this clinic (within the relevant range), which of the following statements is most correct? O Higher volume leads to higher total costs. O Higher volume leads to higher average costs. O Higher volume leads to a higher contribution margin per unit. O Higher volume leads to lower contribution margin per unit.please help me and do not give answer in handwritten.Use the following information to complete Short Exercises S20-10 through S20-13. Funday Park competes with Cool World by providing a variety of rides. Funday Park sells tickers at $70 per- person as a one-day entrance fee. Variable costs are $42 per person, and fixed costs are $170,800 per month Applying sensitivity analysis of Changing fixed costs Refer to the original information (ignoring the changes considered in Short Exercise S20-20) Suppose Funday Park increases fixed costs from $170,800 per month to $231,000 per month. Compute the new breakeven point in tickets and in sales dollars.
- Please Show Work and formulas used in Excel 3. A local college is installing steam pipes on their campus and must decide what insulation to use. If no insulation is used, it has been estimated that the heat loss per foot will be $2.10. If 1-inch thick insulation is used, 70% of the heat loss will be eliminated. If 2-inch thick insulation is used, 84% of the heat loss will be eliminated. The 1-inch thick insulation costs $0.30 per foot to install, and the 2-inch thick insulation costs $0.80 per foot to install. The campus has 230,000 ft of steam pipe on campus, and a MARR=10%. Assume the insulation has a life of 10 years. (a) Calculate the present worth (PW) of all alternatives. (b) Calculate the future worth (FW) of all alternatives. (c) Calculate the annual worth (AW) of all alternatives. (d) Rank the alternatives by any of the above metrics. Explain your choice using one of the ranking methods (PW/FW/AW), as if you were talking to your boss, a non-engineering economist. (e) What…Joyce Murphy runs a courier service in downtown Seattle. She charges clients $0.60 per mile driven. Joyce has determined that if she drives 2,400 miles in a month, her total operating cost is $700. If she drives 3,500 miles in a month, her total operating cost is $810. Required: 1. Using the high-low method, determine Joyce's variable and fixed operating cost components. 2. Complete the contribution margin income statement for Joyce's service assuming she drove 1,550 miles last month. (Assume this falls within the relevant range of operations). Complete this question by entering your answers in the tabs below. Required 1 Required 2 Using the high-low method, determine Joyce's variable and fixed operating cost components. (Round your cost per unit answer to 2 decimal places.) Variable Cost per Mile Driven Fixed CostStandard Costs; Absorption Costing Approach to Cost-Plus Pricing Wilderness Products, Inc., has designed a self-inflating sleeping pad for use by backpackers and campers. The following information is available about the new product: a. An investment of $1,350,000 will be necessary to carry inventories and accounts receivable and to purchase some new equipment needed in the manufacturing process. The company’s required rate of return is 24% on all investments. b. A standard cost card has been prepared for the sleeping pad, as shown below: c. The only variable selling and administrative expense will be a sales commission of $9 per pad. The fixed selling and administrative expenses will be $732,000 per year. d. Because the company manufactures many products, no more than 38,400 direct labor- hours per year can be devoted to production of the new sleeping pads. e. Manufacturing overhead costs are allocated to products on the basis of direct labor-hours. Required: 1. Assume that the company…
- Jamison Company uses the reciprocal services method to allocate support department costs and has gathered the following information: Janitorial Department Usage Cafeteria 50% Cutting 10% Assembly 40% Cafeteria Department Usage Janitorial 20% Cutting 60% Assembly 20% Janitorial Department costs are $450,000. Cafeteria Department costs are $250,000. What are the correct equations to represent (a) the total Janitorial (J) costs, (b) the total Cafeteria (C) costs, and (c) the rewritten equation substituting C into J? a. J = $fill in the blank 1 + (fill in the blank 2% × ) b. C = $fill in the blank 4 + (fill in the blank 5% × ) c. J = $fill in the blank 7 + {fill in the blank 8% × [$fill in the blank 9 + (fill in the blank 10% × )]}4. Develop a single equation to estimate total costs at various levels of activity. 5. Project the total costs if 3,500 rooms are sold.Sherri’s Tan-O-Rama is a local tanning salon. Its regression output is as follows: Coefficients Intercept 4,649.75 X Variable 1 2.12 Suppose that the company charges $7.40 per tanning session. Required: 1. Calculate the unit contribution margin.2. Calculate contribution margin ratio.3. Calculate the total contribution margin if the shop books 1,000 tanning sessions this month.
- Use the following information to complete Short Exercises S20-10 through S20-13. Funday Park competes with Cool World by providing a variety of rides. Funday Park sells tickers at $70 per- person as a one-day entrance fee. Variable costs are $42 per person, and fixed costs are $170,800 per month Computing contribution margin per unit, breakeven point in sales units Compute the contribution margin per unit and the number of tickets Funday Park must sell to break even. Perform numerical proof to show that your answer is correct.Elizabeth and William are considering offering a doggy day-care service. After some research, they found several pet day-care facilities in their area, but they were expensive! Further, the facilities were sterile and didn't provide a "homey" or fun environment for pets. Elizabeth and William felt they could easily fix these shortcomings. Elizabeth's home would be the location for their business, since it already has a fenced-in yard and is located two blocks from a dog park. Estimated costs for building an outdoor shelter, plus other licensing and business start-up costs, are as follows. Shelter (depreciated over 7 years) Licensing and other annual costs Hourly wage for hired labor; planned for only 200 hours per year Variable costs for food Estimated volume of dogs per day (open for business 5 days per week, 50 weeks per year; average length of stay 8 hours per day) $600 per year $700 per year $16 per hour $16 per day per dog. 24 per dayLog Cabins Unlimited constructs vacation houses in the North Carolina mountains. The company has developed the following value chart: a. How much of the total time is value-added time? ______ hours b. How much total time is spent performing non-value-added activities? ______ hours c. Calculate the manufacturing cycle efficiency of the process. Note: Round the percentage to one decimal point (i.e. show 14.445% as 14.4%). ______%