The Happy Toddlers (THT) is a preparatory school for children three to five years old. There are ten teachers employed by THT: five senior teachers with a salary of P30,000 a month and five junior teachers at P18,000 a month. There are also four administrators with average monthly salary of P35,000. Annual depreciation for furniture and fixtures amounted to P100,000. Utilities starting operation totals P200,000. Required: Examine and list down the expenses of THT as of December 31 by nature. Which type of expense is the highest and lowest? If the owner of THT consulted you on minimizing expenses and maximizing profit, what would you recommend?
The Happy Toddlers (THT) is a preparatory school for children three to five years old. There are ten teachers employed by THT: five senior teachers with a salary of P30,000 a month and five junior teachers at P18,000 a month. There are also four administrators with average monthly salary of P35,000. Annual depreciation for furniture and fixtures amounted to P100,000. Utilities starting operation totals P200,000. Required: Examine and list down the expenses of THT as of December 31 by nature. Which type of expense is the highest and lowest? If the owner of THT consulted you on minimizing expenses and maximizing profit, what would you recommend?
Chapter15: Choice Of Business Entity—other Considerations
Section: Chapter Questions
Problem 71P
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The Happy Toddlers (THT) is a preparatory school for children three to five years old. There are ten teachers employed by THT: five senior teachers with a salary of P30,000 a month and five junior teachers at P18,000 a month. There are also four administrators with average monthly salary of P35,000. Annual
Required:
Examine and list down the expenses of THT as of December 31 by nature. Which type of expense is the highest and lowest?
If the owner of THT consulted you on minimizing expenses and maximizing profit, what would you recommend?
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