You have been offered two different jobs for theupcoming summer. Since both are full-time positions, youmust choose to work only one of the jobs.The first job is in an office. The pay will be $700 perweek.The office is located 20 miles from your home, so youestimate that you will spend $50 per week on gas. Youwill also have to pay $50 per week for parking. Becauseyou are required to dress professionally, you will need topurchase some new clothes. You estimate that you willspend $420 on new clothes for this job during thesummer.The second job is at an amusement park. The pay will be$520 per week. The amusement park is also 20 milesfrom your home, but you can carpool with a friend. Yourshare of the gas will be $25 per week. There is no chargefor parking. The amusement park will furnish you with auniform, so you won't need to buy any special clothes.Assuming that your summer break will allow you to work12 weeks, which job will provide you with more money?Calculate the Net Income from both jobs. Make sure youdetail your calculations.What qualitative factors may convince you to take thelower paying job?

Net income, also known as net profit or net earnings, is a key financial metric that represents the…

Answered: You have been offered two different…

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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To recap, W.T.’s planning on the following: Newspaper ad $120 per month Social media manager $100 per month; $1 per job scheduled Payment collection $0.75 per job Gas $4.00 per job Considering his analysis of similar services and to keep things simple, W.T. plans to price all jobs the same and charge $15 per job. Because of this flat rate, he anticipates he’ll likely need to create different types of “jobs”. For example, purchasing a list of items at the grocery store would be one job, while a bundle of 2-3 small errands such as picking up dry cleaning and prescriptions, might be considered one job. We’ll deal with those details later. For now, assume that all jobs are priced at $15 each and all have the associated variable expenses listed above. Because this will be a new business, W.T. knows business will likely be slow at the beginning. Complete the following table assuming W.T. completes 10 jobs in a single month. Item Per Job Total (10…
Danny just answered a help wanted ad. The ad states that the job pays $37.5k. What would Danny’s monthly salary be if he gets this job?
A real estate agent is considering changing her land line phone plan. There are three plans to choose from, all of which involve a monthly service charge of $20. Plan A has a cost of $.37 a minute for daytime calls and $.16 a minute for evening calls. Plan B has a charge of $.46 a minute for daytime calls and $.14 a minute for evening calls. Plan C has a flat rate of $75 with 300 minutes of calls allowed per month and a charge of $.34 per minute beyond that, day or evening. a. Determine the total charge under each plan for this case: 130 minutes of day calls and 50 minutes of evening calls in a month. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Cost for Plan A Cost for Plan B Cost for Plan C $ $ $ b. If the agent will only use the service for daytime calls, over what range of call minutes will each plan be optimal? (Round each answer to the nearest whole number. Include the indifference point itself in each answer.) Plan A is optimal from zero to…
(Consider This) Mason, a professional house painter, needs his tax return prepared; in which situation below would he choose to hire Madison, the CPA, rather than sacrifice time (and income) from house painting? The CPA can prepare the tax return in 2 hours and would charge $50 per hour, Mason would take 10 hours to prepare the tax return and sacrifice $15 per hour. The CPA can prepare the tax return in 10 hours and would charge $50 per hour, Mason would take 10 hours to prepare the tax return and sacrifice $15 per hour. The CPA can prepare the tax return in 2 hours and charge $100 per hour; Mason would take 10 hours to prepare the tax return and sacrifice $15 per hour. Mason would not hire Madison in any of these situations described.
Bridget Youhzi works for a large firm. Her alma mater has asked her to make a presentation to the upcoming accounting honor society's annual scholarship dinner. Her firm supports the presentation because it hopes to recruit more excellent employees like Bridget. The university is 192 miles from her office. In order to get to the dinner by 5:00 p.m., she will need to leave work at 1:00 p.m. She can drive her personal car and be reimbursed $0.50 per mile. The dinner ends at 9:00 p.m. Company policy allows her to spend the night if the return trip is four hours or more. There is a student-run Inn and conference center across the street from campus that charges $102 per night. Instead of driving, she could catch a 3:00 p.m. flight that has a round-trip fare of $310. Flying would require her to rent a car for $39 per day and pay an airport parking fee of $26 for the day. The company pays a per diem of $35 for Incidentals if the employee spends at least six hours out of town. (The per diem…
Anita Tahani, who owns a travel agency, boughtan old house to use as her business office. Shefound that the ceiling was poorly insulated andthat the heat loss could be cut significantly if sixinches of foam insulation were installed. She estimatedthat, with the insulation, she could cutthe heating bill by $40 per month and the airconditioningcost hy $25 per month. Assumingthat the summer season is three months (June,July, and August) of the year and that the winterseason is another three months (December, January,and February) of the year, what's the mostthat Anita can spend on insulation that wouldmake installation worthwhile, given that she expectsto keep the property for five years? Assumethat neither heating nor air conditioningwould be required during the fall and springseasons. If she decides to install the insulation, itwill be done at the beginning of May. Anita's interestrate is 9% compounded monthly.
Bridget Youhzi works for a large firm. Her alma mater has asked her to make a presentation to the upcoming accounting honor society’s annual scholarship dinner. Her firm supports the presentation because it hopes to recruit more excellent employees like Bridget. The university is 192 miles from her office. In order to get to the dinner by 5:00 p.m., she will need to leave work at 1:00 p.m. She can drive her personal car and be reimbursed $0.50 per mile. The dinner ends at 9:00 p.m. Company policy allows her to spend the night if the return trip is four hours or more. There is a student-run inn and conference center across the street from campus that charges $101 per night. Instead of driving, she could catch a 3:00 p.m. flight that has a round-trip fare of $290. Flying would require her to rent a car for $40 per day and pay an airport parking fee of $25 for the day. The company pays a per diem of $36 for incidentals if the employee spends at least six hours out of town. (The per diem…
How many units does Eddie the Entrepreneur need to sell to breakeven in a day? He rents a kiosk in the mall for $300 a day. He creates artworks that cost him $47 each in materials and sells them for $100 each. He pays one of his friends $10 an hour to man the booth and he has to pay mall management 3% of his sales. The mall is open daily from 10 am to 8 pm.
You are not ready to open a brick-and-mortar bakery but you think you can handle catering. You have received your first 4 orders. Use the following schedule to determine how much of each raw material you need to use for each dozen cupcakes. It takes you 60 minutes to mix, bake, cool, and ice two dozen cupcakes and you pay yourself $15 per hour. You can only cook two dozen cupcakes at one time. You have also determined that your overhead per dozen is $2.75. You charge $17.00 for each dozen. Selling Price per Material Unit size Pounds per dozen Cost per pound $17 Dozen Cupcakes Flour pound pound 0.5 2.50 Butter 0.25 1.00 Sugar pound 0.5 2.00 Eggs dozen 0.17 2.00 gallon gallon pound pound Milk 0.1 0.1 3.00 Vanilla 0.25 6.00 Cocoa Powder 0.25 4.00 Vanilla Icing Chocolate Icing 0.75 1.50 pound 0.75 1.50 Bakery box each 1 0.50 Job #1 Job #2 Job #3 Job #4 Four dozen chocolate cupcakes with chocolate icing One dozen vanilla cupcakes with chocolate icing Three dozen chocolate cupcakes with…
Jose must choose between two job offers. The first job pays $62,000 for the first year. Each year thereafter, he would receive a raise of $2400. A second job offers $66,000 the first year with a raise of $2000 each year thereafter. However, with the second job, Jose would have to pay $150 per month out of his paycheck for health insurance. Part: 0 / 2 Part 1 of 2 (a) If Jose anticipates working for the company for 6 years, find the total amount he would earn from each job. Jose would earn $ over 6 years from the first job, or a total of $ from the second job.
You are considering two job offers: Job 1 is a full-time position that pays $58,000 annually and Job 2 is a full-time (40 hours a week) job that pays $26 an hour. You will pay 12% of your income for federal income taxes, 6.2% for Social Security, 1.45% for Medicare, and 4% for state income taxes. Job 1 has the following benefits: Health insurance costs $220 a month pre-tax income and the retirement plan is $180 of your after-tax income. You receive (10 days) of paid vacation. Job 2 has the following benefits: health insurance costs $75 a month of your pre-tax income and the retirement plan is 5% of your pre-tax income. You receive 1 week (5 days) of paid vacation. You plan on taking 2 weeks (10 days) of vacation. What is the Monthly Take Home Pay for Job 1?

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