Software Solution (SOS) helps subscribers solve software problems. All transactions are made over the telephone. For the year 2021, 8engineers, most of whom are recent graduates, handled 109,000 calls. The average yearly salary for software engineers was $48,000.Starting in 2022, the firm retained and hired only software engineers with at least 2 years of experience. SOS raised the engineers'salary to $63,000 per year. In 2022, five engineers handled 117,000 calls.Required:1. Calculate the partial operational productivity ratio for both years.2. Calculate the partial financial productivity ratio for both years. (Round your answers to 4 decimal places.)202120221. Operational partial productivity2. Financial partial productivity

2021 Total Salary=$48,000×8=$384,000

Answered: Software Solution (SOS) helps…

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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Office Furniture & Fixtures, which is estimated to cost $350,000, will be purchased in February. The manager has made arrangement with the suppliers to make a cash deposit of 40% upon signing of the agreement in February. The balance will be settled in five (5) equal monthly instalments beginning March of 2022.
Super Clubs Hotels, Inc. has signed a service outsourcing contract with Quality Rooms, Inc. for $3 million, which was received in cash at contract inception. Under the agreement, Quality Rooms is obligated to clean and prepare over 5,000 hotels rooms managed by Super Clubs on a daily basis from September 1, 2020 to August 31, 2021. Required: Prepare any journal entry that Quality would record: (1) at inception of the contract and (2) at the end of 2020 to recognize all revenue associated with this contract that should be recognized in 2020.
Upon inception in 2019, AVX Corp. (AVX) set up its business in a small office building in Toronto and entered into an agreement with Executive Furniture Inc. to purchase office furniture for the building on a month-by-month basis (two sets of furniture per month), with the expectation that AVX would be hiring two new employees each month on average. As AVX experienced considerable growth throughout 2020, it hired 25 additional employees at the same time, and its office building was NO longer sufficient to meet its needs. On December 15, 2020, AVX moved out of its original office building and into a new, larger office. Due to configurations in the new office, AVX had to purchase a different type of office furniture (including stand-up desks) for all of its employees. AVX has been trying to negotiate with Executive Furniture Inc. to get out of the original purchase agreement, which requires AVX to pay $4,000 per month at the beginning of each month until December 2022, since AVX has…
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Required information [The following information applies to the questions displayed below.] This year Elizabeth agreed to a three-year service contract with an engineering consulting firm to improve efficiency in her factory. The contract requires Elizabeth to pay the consulting firm $1,500 for each instance that Elizabeth requests its assistance. The contract also provides that Elizabeth only pays the consultants if their advice increases efficiency as measured 12 months from the date of service. This year Elizabeth requested advice on three occasions and she has not yet made any payments to the consultants. (Leave no answers blank. Enter zero if applicable.) b. How much should Elizabeth deduct this year under this service contract if she uses the cash method of accounting? Deductible amount
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Asia Pacific Ltd started operating on 1 July 2017 with 12 employees. Three years later all of thoseemployees were still with the company. On 1 July 2019, the company hired 15 more people but by 30June 2020 only 10 of those employed at the beginning of that year were still employed by the Asia PacificLtd.All employees are entitled to 13 weeks’ long-service leave after a conditional period of 10 years ofemployment with Asia Pacific Ltd.At 30 June 2020 Asia Pacific Ltd estimates the following: The aggregate annual salaries of all employees hired on 1 July 2017 is now $1,200,000. The aggregate annual salaries of all current employees hired on 1 July 2019 is now $800,000. The probability that employees hired on 1 July 2017 will continue to be employed for the durationof the conditional period is 40 percent. The probability that employees hired on 1 July 2019 will continue to be employed for the durationof the conditional period is 20 percent. Salaries are expected to increase…
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