Determine the expected net income when 500 people buy the ticket

Question

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Answer 1

Question

Chapter 11, Problem 2ATC

a)

To determine

Determine the expected net income when 500 people buy the ticket

a)

Expert Solution

Explanation of Solution

Given information:

The sale price of ticket is $28. Fee is $10,000 fixed.

The formula to calculate the net income:

Net income=Revenue−Cost

Compute the net income:

Net income=Revenue−Cost=$14,000−$10,000=$4,000

Hence, the net income is $4,000.

The price of the speaker will remain same irrespective of fixed fee or fee of $20 per ticket sold.

b)1.

To determine

Determine the net income and percentage change in net income if the sale of tickets is 10% higher than expected

b)1.

Expert Solution

Explanation of Solution

Given information:

Refer above part for net income:

Compute the net income:

Survey Of Accounting, Chapter 11, Problem 2ATC , additional homework tip 1

The net income is $5,400.

Compute the percentage growth in net income:

Percentage change in net income=Current year income−Base year incomeBase year income=$5,400−$4,000$4,000=35%

Hence, the percentage growth in net income is 35%.

2.

To determine

Determine the net income and percentage change in net income if the sale of tickets is 10% lower than expected and the fixed fee is $10,000.

2.

Expert Solution

Explanation of Solution

Given information:

Refer part a) for net income:

Compute the net income:

Excel spread sheet:

Survey Of Accounting, Chapter 11, Problem 2ATC , additional homework tip 2

Excel workings:

Survey Of Accounting, Chapter 11, Problem 2ATC , additional homework tip 3

The net income is $2,600.

Compute the percentage growth in net income:

Percentage change in net income=Base year income−Current year incomeBase year income=$4,000−$2,600$4,000=35%

Hence, the percentage growth in net income is 35%.

3.

To determine

Determine the net income and percentage change in net income if School P pays Person L $20 per ticket sold. The sale of tickets is 10% higher than expected.

3.

Expert Solution

Explanation of Solution

Given information:

Refer part a) for net income:

Compute the net income:

Excel spread sheet:

Survey Of Accounting, Chapter 11, Problem 2ATC , additional homework tip 4

The net income is $4,400.

Excel workings:

Survey Of Accounting, Chapter 11, Problem 2ATC , additional homework tip 5

Compute the percentage growth in net income:

Percentage change in net income=Current year income−Base year incomeBase year income=$4,400−$4,000$4,000=10%

Hence, the percentage growth in net income is 10%.

4)

To determine

Determine the net income and percentage change in net income if School P pays Person L $20 per ticket sold and the sale of tickets is 10% lower than expected.

4)

Expert Solution

Explanation of Solution

Given information:

Refer part a) for net income:

Compute the net income:

Excel spread sheet:

Survey Of Accounting, Chapter 11, Problem 2ATC , additional homework tip 6

The net income is $3,600.

Excel workings:

Survey Of Accounting, Chapter 11, Problem 2ATC , additional homework tip 7

Compute the percentage growth in net income:

Percentage change in net income=Current year income−Base year incomeBase year income=$3,600−$4,000$4,000=10%

Hence, the percentage growth in net income is 10%.

c)

To determine

Discuss the discrepancies if any arises on the computation presented at the board by the spokesperson and by the other groups.

c)

Expert Solution

Explanation of Solution

There are no discrepancies in the computation presented at the board by the spokesperson and by the other groups.

d)1.

To determine

The kind of cost structure produces the greater growth potential in the profitability of the company.

d)1.

Expert Solution

Explanation of Solution

The fixed cost structure produces the higher growth potential in company’s profitability.

This is because of operating leverage.

2.

To determine

The type of cost structure produces the higher risk of company’s declining profitability.

2.

Expert Solution

Explanation of Solution

The fixed cost structure produces the higher risk of company’s declining profitability.

This is because of operating leverage.

3.

To determine

The circumstances under which the company pursue to establish a fixed cost structure

3.

Expert Solution

Explanation of Solution

The circumstances where the sales of the company expected to raise are where the fixed cost structure is established.

4.

To determine

The circumstances under which the company pursues to establish a variable cost structure

4.

Expert Solution

Explanation of Solution

The circumstances where the sales of the company expected to drop are where the variable cost structure is established.

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Answer 2

Question

Chapter 11, Problem 2ATC

a)

To determine

Determine the expected net income when 500 people buy the ticket

a)

Expert Solution

Explanation of Solution

Given information:

The sale price of ticket is $28. Fee is $10,000 fixed.

The formula to calculate the net income:

Net income=Revenue−Cost

Compute the net income:

Net income=Revenue−Cost=$14,000−$10,000=$4,000

Hence, the net income is $4,000.

The price of the speaker will remain same irrespective of fixed fee or fee of $20 per ticket sold.

b)1.

To determine

Determine the net income and percentage change in net income if the sale of tickets is 10% higher than expected

b)1.

Expert Solution

Explanation of Solution

Given information:

Refer above part for net income:

Compute the net income:

Survey Of Accounting, Chapter 11, Problem 2ATC , additional homework tip 1

The net income is $5,400.

Compute the percentage growth in net income:

Percentage change in net income=Current year income−Base year incomeBase year income=$5,400−$4,000$4,000=35%

Hence, the percentage growth in net income is 35%.

2.

To determine

Determine the net income and percentage change in net income if the sale of tickets is 10% lower than expected and the fixed fee is $10,000.

2.

Expert Solution

Explanation of Solution

Given information:

Refer part a) for net income:

Compute the net income:

Excel spread sheet:

Survey Of Accounting, Chapter 11, Problem 2ATC , additional homework tip 2

Excel workings:

Survey Of Accounting, Chapter 11, Problem 2ATC , additional homework tip 3

The net income is $2,600.

Compute the percentage growth in net income:

Percentage change in net income=Base year income−Current year incomeBase year income=$4,000−$2,600$4,000=35%

Hence, the percentage growth in net income is 35%.

3.

To determine

Determine the net income and percentage change in net income if School P pays Person L $20 per ticket sold. The sale of tickets is 10% higher than expected.

3.

Expert Solution

Explanation of Solution

Given information:

Refer part a) for net income:

Compute the net income:

Excel spread sheet:

Survey Of Accounting, Chapter 11, Problem 2ATC , additional homework tip 4

The net income is $4,400.

Excel workings:

Survey Of Accounting, Chapter 11, Problem 2ATC , additional homework tip 5

Compute the percentage growth in net income:

Percentage change in net income=Current year income−Base year incomeBase year income=$4,400−$4,000$4,000=10%

Hence, the percentage growth in net income is 10%.

4)

To determine

Determine the net income and percentage change in net income if School P pays Person L $20 per ticket sold and the sale of tickets is 10% lower than expected.

4)

Expert Solution

Explanation of Solution

Given information:

Refer part a) for net income:

Compute the net income:

Excel spread sheet:

Survey Of Accounting, Chapter 11, Problem 2ATC , additional homework tip 6

The net income is $3,600.

Excel workings:

Survey Of Accounting, Chapter 11, Problem 2ATC , additional homework tip 7

Compute the percentage growth in net income:

Percentage change in net income=Current year income−Base year incomeBase year income=$3,600−$4,000$4,000=10%

Hence, the percentage growth in net income is 10%.

c)

To determine

Discuss the discrepancies if any arises on the computation presented at the board by the spokesperson and by the other groups.

c)

Expert Solution

Explanation of Solution

There are no discrepancies in the computation presented at the board by the spokesperson and by the other groups.

d)1.

To determine

The kind of cost structure produces the greater growth potential in the profitability of the company.

d)1.

Expert Solution

Explanation of Solution

The fixed cost structure produces the higher growth potential in company’s profitability.

This is because of operating leverage.

2.

To determine

The type of cost structure produces the higher risk of company’s declining profitability.

2.

Expert Solution

Explanation of Solution

The fixed cost structure produces the higher risk of company’s declining profitability.

This is because of operating leverage.

3.

To determine

The circumstances under which the company pursue to establish a fixed cost structure

3.

Expert Solution

Explanation of Solution

The circumstances where the sales of the company expected to raise are where the fixed cost structure is established.

4.

To determine

The circumstances under which the company pursues to establish a variable cost structure

4.

Expert Solution

Explanation of Solution

The circumstances where the sales of the company expected to drop are where the variable cost structure is established.

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Answer 3

Question

Chapter 11, Problem 2ATC

a)

To determine

Determine the expected net income when 500 people buy the ticket

a)

Expert Solution

Explanation of Solution

Given information:

The sale price of ticket is $28. Fee is $10,000 fixed.

The formula to calculate the net income:

Net income=Revenue−Cost

Compute the net income:

Net income=Revenue−Cost=$14,000−$10,000=$4,000

Hence, the net income is $4,000.

The price of the speaker will remain same irrespective of fixed fee or fee of $20 per ticket sold.

b)1.

To determine

Determine the net income and percentage change in net income if the sale of tickets is 10% higher than expected

b)1.

Expert Solution

Explanation of Solution

Given information:

Refer above part for net income:

Compute the net income:

Survey Of Accounting, Chapter 11, Problem 2ATC , additional homework tip 1

The net income is $5,400.

Compute the percentage growth in net income:

Percentage change in net income=Current year income−Base year incomeBase year income=$5,400−$4,000$4,000=35%

Hence, the percentage growth in net income is 35%.

2.

To determine

Determine the net income and percentage change in net income if the sale of tickets is 10% lower than expected and the fixed fee is $10,000.

2.

Expert Solution

Explanation of Solution

Given information:

Refer part a) for net income:

Compute the net income:

Excel spread sheet:

Survey Of Accounting, Chapter 11, Problem 2ATC , additional homework tip 2

Excel workings:

Survey Of Accounting, Chapter 11, Problem 2ATC , additional homework tip 3

The net income is $2,600.

Compute the percentage growth in net income:

Percentage change in net income=Base year income−Current year incomeBase year income=$4,000−$2,600$4,000=35%

Hence, the percentage growth in net income is 35%.

3.

To determine

Determine the net income and percentage change in net income if School P pays Person L $20 per ticket sold. The sale of tickets is 10% higher than expected.

3.

Expert Solution

Explanation of Solution

Given information:

Refer part a) for net income:

Compute the net income:

Excel spread sheet:

Survey Of Accounting, Chapter 11, Problem 2ATC , additional homework tip 4

The net income is $4,400.

Excel workings:

Survey Of Accounting, Chapter 11, Problem 2ATC , additional homework tip 5

Compute the percentage growth in net income:

Percentage change in net income=Current year income−Base year incomeBase year income=$4,400−$4,000$4,000=10%

Hence, the percentage growth in net income is 10%.

4)

To determine

Determine the net income and percentage change in net income if School P pays Person L $20 per ticket sold and the sale of tickets is 10% lower than expected.

4)

Expert Solution

Explanation of Solution

Given information:

Refer part a) for net income:

Compute the net income:

Excel spread sheet:

Survey Of Accounting, Chapter 11, Problem 2ATC , additional homework tip 6

The net income is $3,600.

Excel workings:

Survey Of Accounting, Chapter 11, Problem 2ATC , additional homework tip 7

Compute the percentage growth in net income:

Percentage change in net income=Current year income−Base year incomeBase year income=$3,600−$4,000$4,000=10%

Hence, the percentage growth in net income is 10%.

c)

To determine

Discuss the discrepancies if any arises on the computation presented at the board by the spokesperson and by the other groups.

c)

Expert Solution

Explanation of Solution

There are no discrepancies in the computation presented at the board by the spokesperson and by the other groups.

d)1.

To determine

The kind of cost structure produces the greater growth potential in the profitability of the company.

d)1.

Expert Solution

Explanation of Solution

The fixed cost structure produces the higher growth potential in company’s profitability.

This is because of operating leverage.

2.

To determine

The type of cost structure produces the higher risk of company’s declining profitability.

2.

Expert Solution

Explanation of Solution

The fixed cost structure produces the higher risk of company’s declining profitability.

This is because of operating leverage.

3.

To determine

The circumstances under which the company pursue to establish a fixed cost structure

3.

Expert Solution

Explanation of Solution

The circumstances where the sales of the company expected to raise are where the fixed cost structure is established.

4.

To determine

The circumstances under which the company pursues to establish a variable cost structure

4.

Expert Solution

Explanation of Solution

The circumstances where the sales of the company expected to drop are where the variable cost structure is established.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 11, Problem 2ATC

a)

To determine

Determine the expected net income when 500 people buy the ticket

a)

Expert Solution

Explanation of Solution

Given information:

The sale price of ticket is $28. Fee is $10,000 fixed.

The formula to calculate the net income:

Net income=Revenue−Cost

Compute the net income:

Net income=Revenue−Cost=$14,000−$10,000=$4,000

Hence, the net income is $4,000.

The price of the speaker will remain same irrespective of fixed fee or fee of $20 per ticket sold.

b)1.

To determine

Determine the net income and percentage change in net income if the sale of tickets is 10% higher than expected

b)1.

Expert Solution

Explanation of Solution

Given information:

Refer above part for net income:

Compute the net income:

Survey Of Accounting, Chapter 11, Problem 2ATC , additional homework tip 1

The net income is $5,400.

Compute the percentage growth in net income:

Percentage change in net income=Current year income−Base year incomeBase year income=$5,400−$4,000$4,000=35%

Hence, the percentage growth in net income is 35%.

2.

To determine

Determine the net income and percentage change in net income if the sale of tickets is 10% lower than expected and the fixed fee is $10,000.

2.

Expert Solution

Explanation of Solution

Given information:

Refer part a) for net income:

Compute the net income:

Excel spread sheet:

Survey Of Accounting, Chapter 11, Problem 2ATC , additional homework tip 2

Excel workings:

Survey Of Accounting, Chapter 11, Problem 2ATC , additional homework tip 3

The net income is $2,600.

Compute the percentage growth in net income:

Percentage change in net income=Base year income−Current year incomeBase year income=$4,000−$2,600$4,000=35%

Hence, the percentage growth in net income is 35%.

3.

To determine

Determine the net income and percentage change in net income if School P pays Person L $20 per ticket sold. The sale of tickets is 10% higher than expected.

3.

Expert Solution

Explanation of Solution

Given information:

Refer part a) for net income:

Compute the net income:

Excel spread sheet:

Survey Of Accounting, Chapter 11, Problem 2ATC , additional homework tip 4

The net income is $4,400.

Excel workings:

Survey Of Accounting, Chapter 11, Problem 2ATC , additional homework tip 5

Compute the percentage growth in net income:

Percentage change in net income=Current year income−Base year incomeBase year income=$4,400−$4,000$4,000=10%

Hence, the percentage growth in net income is 10%.

4)

To determine

Determine the net income and percentage change in net income if School P pays Person L $20 per ticket sold and the sale of tickets is 10% lower than expected.

4)

Expert Solution

Explanation of Solution

Given information:

Refer part a) for net income:

Compute the net income:

Excel spread sheet:

Survey Of Accounting, Chapter 11, Problem 2ATC , additional homework tip 6

The net income is $3,600.

Excel workings:

Survey Of Accounting, Chapter 11, Problem 2ATC , additional homework tip 7

Compute the percentage growth in net income:

Percentage change in net income=Current year income−Base year incomeBase year income=$3,600−$4,000$4,000=10%

Hence, the percentage growth in net income is 10%.

c)

To determine

Discuss the discrepancies if any arises on the computation presented at the board by the spokesperson and by the other groups.

c)

Expert Solution

Explanation of Solution

There are no discrepancies in the computation presented at the board by the spokesperson and by the other groups.

d)1.

To determine

The kind of cost structure produces the greater growth potential in the profitability of the company.

d)1.

Expert Solution

Explanation of Solution

The fixed cost structure produces the higher growth potential in company’s profitability.

This is because of operating leverage.

2.

To determine

The type of cost structure produces the higher risk of company’s declining profitability.

2.

Expert Solution

Explanation of Solution

The fixed cost structure produces the higher risk of company’s declining profitability.

This is because of operating leverage.

3.

To determine

The circumstances under which the company pursue to establish a fixed cost structure

3.

Expert Solution

Explanation of Solution

The circumstances where the sales of the company expected to raise are where the fixed cost structure is established.

4.

To determine

The circumstances under which the company pursues to establish a variable cost structure

4.

Expert Solution

Explanation of Solution

The circumstances where the sales of the company expected to drop are where the variable cost structure is established.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 11, Problem 2ATC

a)

To determine

Determine the expected net income when 500 people buy the ticket

a)

Expert Solution

Explanation of Solution

Given information:

The sale price of ticket is $28. Fee is $10,000 fixed.

The formula to calculate the net income:

Net income=Revenue−Cost

Compute the net income:

Net income=Revenue−Cost=$14,000−$10,000=$4,000

Hence, the net income is $4,000.

The price of the speaker will remain same irrespective of fixed fee or fee of $20 per ticket sold.

b)1.

To determine

Determine the net income and percentage change in net income if the sale of tickets is 10% higher than expected

b)1.

Expert Solution

Explanation of Solution

Given information:

Refer above part for net income:

Compute the net income:

Survey Of Accounting, Chapter 11, Problem 2ATC , additional homework tip 1

The net income is $5,400.

Compute the percentage growth in net income:

Percentage change in net income=Current year income−Base year incomeBase year income=$5,400−$4,000$4,000=35%

Hence, the percentage growth in net income is 35%.

2.

To determine

Determine the net income and percentage change in net income if the sale of tickets is 10% lower than expected and the fixed fee is $10,000.

2.

Expert Solution

Explanation of Solution

Given information:

Refer part a) for net income:

Compute the net income:

Excel spread sheet:

Survey Of Accounting, Chapter 11, Problem 2ATC , additional homework tip 2

Excel workings:

Survey Of Accounting, Chapter 11, Problem 2ATC , additional homework tip 3

The net income is $2,600.

Compute the percentage growth in net income:

Percentage change in net income=Base year income−Current year incomeBase year income=$4,000−$2,600$4,000=35%

Hence, the percentage growth in net income is 35%.

3.

To determine

Determine the net income and percentage change in net income if School P pays Person L $20 per ticket sold. The sale of tickets is 10% higher than expected.

3.

Expert Solution

Explanation of Solution

Given information:

Refer part a) for net income:

Compute the net income:

Excel spread sheet:

Survey Of Accounting, Chapter 11, Problem 2ATC , additional homework tip 4

The net income is $4,400.

Excel workings:

Survey Of Accounting, Chapter 11, Problem 2ATC , additional homework tip 5

Compute the percentage growth in net income:

Percentage change in net income=Current year income−Base year incomeBase year income=$4,400−$4,000$4,000=10%

Hence, the percentage growth in net income is 10%.

4)

To determine

Determine the net income and percentage change in net income if School P pays Person L $20 per ticket sold and the sale of tickets is 10% lower than expected.

4)

Expert Solution

Explanation of Solution

Given information:

Refer part a) for net income:

Compute the net income:

Excel spread sheet:

Survey Of Accounting, Chapter 11, Problem 2ATC , additional homework tip 6

The net income is $3,600.

Excel workings:

Survey Of Accounting, Chapter 11, Problem 2ATC , additional homework tip 7

Compute the percentage growth in net income:

Percentage change in net income=Current year income−Base year incomeBase year income=$3,600−$4,000$4,000=10%

Hence, the percentage growth in net income is 10%.

c)

To determine

Discuss the discrepancies if any arises on the computation presented at the board by the spokesperson and by the other groups.

c)

Expert Solution

Explanation of Solution

There are no discrepancies in the computation presented at the board by the spokesperson and by the other groups.

d)1.

To determine

The kind of cost structure produces the greater growth potential in the profitability of the company.

d)1.

Expert Solution

Explanation of Solution

The fixed cost structure produces the higher growth potential in company’s profitability.

This is because of operating leverage.

2.

To determine

The type of cost structure produces the higher risk of company’s declining profitability.

2.

Expert Solution

Explanation of Solution

The fixed cost structure produces the higher risk of company’s declining profitability.

This is because of operating leverage.

3.

To determine

The circumstances under which the company pursue to establish a fixed cost structure

3.

Expert Solution

Explanation of Solution

The circumstances where the sales of the company expected to raise are where the fixed cost structure is established.

4.

To determine

The circumstances under which the company pursues to establish a variable cost structure

4.

Expert Solution

Explanation of Solution

The circumstances where the sales of the company expected to drop are where the variable cost structure is established.

Answer 6

Chapter 11, Problem 2ATC

a)

To determine

Determine the expected net income when 500 people buy the ticket

a)

Expert Solution

Explanation of Solution

Given information:

The sale price of ticket is $28. Fee is $10,000 fixed.

The formula to calculate the net income:

Net income=Revenue−Cost

Compute the net income:

Net income=Revenue−Cost=$14,000−$10,000=$4,000

Hence, the net income is $4,000.

The price of the speaker will remain same irrespective of fixed fee or fee of $20 per ticket sold.

Answer 7

Chapter 11, Problem 2ATC

a)

To determine

Determine the expected net income when 500 people buy the ticket

Answer 8

a)

Expert Solution

Explanation of Solution

Given information:

The sale price of ticket is $28. Fee is $10,000 fixed.

The formula to calculate the net income:

Net income=Revenue−Cost

Compute the net income:

Net income=Revenue−Cost=$14,000−$10,000=$4,000

Hence, the net income is $4,000.

The price of the speaker will remain same irrespective of fixed fee or fee of $20 per ticket sold.

Answer 9

a)

Expert Solution

Answer 10

a)

Expert Solution

Answer 11

Expert Solution

Answer 12

b)1.

To determine

Determine the net income and percentage change in net income if the sale of tickets is 10% higher than expected

b)1.

Expert Solution

Explanation of Solution

Given information:

Refer above part for net income:

Compute the net income:

Survey Of Accounting, Chapter 11, Problem 2ATC , additional homework tip 1

The net income is $5,400.

Compute the percentage growth in net income:

Percentage change in net income=Current year income−Base year incomeBase year income=$5,400−$4,000$4,000=35%

Hence, the percentage growth in net income is 35%.

Answer 13

b)1.

To determine

Determine the net income and percentage change in net income if the sale of tickets is 10% higher than expected

Answer 14

b)1.

Expert Solution

Explanation of Solution

Given information:

Refer above part for net income:

Compute the net income:

Survey Of Accounting, Chapter 11, Problem 2ATC , additional homework tip 1

The net income is $5,400.

Compute the percentage growth in net income:

Percentage change in net income=Current year income−Base year incomeBase year income=$5,400−$4,000$4,000=35%

Hence, the percentage growth in net income is 35%.

Answer 15

b)1.

Expert Solution

Answer 16

b)1.

Expert Solution

Answer 17

Expert Solution

Answer 18

2.

To determine

Determine the net income and percentage change in net income if the sale of tickets is 10% lower than expected and the fixed fee is $10,000.

2.

Expert Solution

Explanation of Solution

Given information:

Refer part a) for net income:

Compute the net income:

Excel spread sheet:

Survey Of Accounting, Chapter 11, Problem 2ATC , additional homework tip 2

Excel workings:

Survey Of Accounting, Chapter 11, Problem 2ATC , additional homework tip 3

The net income is $2,600.

Compute the percentage growth in net income:

Percentage change in net income=Base year income−Current year incomeBase year income=$4,000−$2,600$4,000=35%

Hence, the percentage growth in net income is 35%.

Answer 19

2.

To determine

Determine the net income and percentage change in net income if the sale of tickets is 10% lower than expected and the fixed fee is $10,000.

Answer 20

2.

Expert Solution

Explanation of Solution

Given information:

Refer part a) for net income:

Compute the net income:

Excel spread sheet:

Survey Of Accounting, Chapter 11, Problem 2ATC , additional homework tip 2

Excel workings:

Survey Of Accounting, Chapter 11, Problem 2ATC , additional homework tip 3

The net income is $2,600.

Compute the percentage growth in net income:

Percentage change in net income=Base year income−Current year incomeBase year income=$4,000−$2,600$4,000=35%

Hence, the percentage growth in net income is 35%.

Answer 21

2.

Expert Solution

Answer 22

2.

Expert Solution

Answer 23

Expert Solution

Answer 24

3.

To determine

Determine the net income and percentage change in net income if School P pays Person L $20 per ticket sold. The sale of tickets is 10% higher than expected.

3.

Expert Solution

Explanation of Solution

Given information:

Refer part a) for net income:

Compute the net income:

Excel spread sheet:

Survey Of Accounting, Chapter 11, Problem 2ATC , additional homework tip 4

The net income is $4,400.

Excel workings:

Survey Of Accounting, Chapter 11, Problem 2ATC , additional homework tip 5

Compute the percentage growth in net income:

Percentage change in net income=Current year income−Base year incomeBase year income=$4,400−$4,000$4,000=10%

Hence, the percentage growth in net income is 10%.

Answer 25

3.

To determine

Determine the net income and percentage change in net income if School P pays Person L $20 per ticket sold. The sale of tickets is 10% higher than expected.

Answer 26

3.

Expert Solution

Explanation of Solution

Given information:

Refer part a) for net income:

Compute the net income:

Excel spread sheet:

Survey Of Accounting, Chapter 11, Problem 2ATC , additional homework tip 4

The net income is $4,400.

Excel workings:

Survey Of Accounting, Chapter 11, Problem 2ATC , additional homework tip 5

Compute the percentage growth in net income:

Percentage change in net income=Current year income−Base year incomeBase year income=$4,400−$4,000$4,000=10%

Hence, the percentage growth in net income is 10%.

Answer 27

3.

Expert Solution

Answer 28

3.

Expert Solution

Answer 29

Expert Solution

Answer 30

4)

To determine

Determine the net income and percentage change in net income if School P pays Person L $20 per ticket sold and the sale of tickets is 10% lower than expected.

4)

Expert Solution

Explanation of Solution

Given information:

Refer part a) for net income:

Compute the net income:

Excel spread sheet:

Survey Of Accounting, Chapter 11, Problem 2ATC , additional homework tip 6

The net income is $3,600.

Excel workings:

Survey Of Accounting, Chapter 11, Problem 2ATC , additional homework tip 7

Compute the percentage growth in net income:

Percentage change in net income=Current year income−Base year incomeBase year income=$3,600−$4,000$4,000=10%

Hence, the percentage growth in net income is 10%.

Answer 31

4)

To determine

Determine the net income and percentage change in net income if School P pays Person L $20 per ticket sold and the sale of tickets is 10% lower than expected.

Answer 32

4)

Expert Solution

Explanation of Solution

Given information:

Refer part a) for net income:

Compute the net income:

Excel spread sheet:

Survey Of Accounting, Chapter 11, Problem 2ATC , additional homework tip 6

The net income is $3,600.

Excel workings:

Survey Of Accounting, Chapter 11, Problem 2ATC , additional homework tip 7

Compute the percentage growth in net income:

Percentage change in net income=Current year income−Base year incomeBase year income=$3,600−$4,000$4,000=10%

Hence, the percentage growth in net income is 10%.

Answer 33

4)

Expert Solution

Answer 34

4)

Expert Solution

Answer 35

Expert Solution

Answer 36

c)

To determine

Discuss the discrepancies if any arises on the computation presented at the board by the spokesperson and by the other groups.

c)

Expert Solution

Explanation of Solution

There are no discrepancies in the computation presented at the board by the spokesperson and by the other groups.

Answer 37

c)

To determine

Discuss the discrepancies if any arises on the computation presented at the board by the spokesperson and by the other groups.

Answer 38

c)

Expert Solution

Explanation of Solution

There are no discrepancies in the computation presented at the board by the spokesperson and by the other groups.

Answer 39

c)

Expert Solution

Answer 40

c)

Expert Solution

Answer 41

Expert Solution

Answer 42

d)1.

To determine

The kind of cost structure produces the greater growth potential in the profitability of the company.

d)1.

Expert Solution

Explanation of Solution

The fixed cost structure produces the higher growth potential in company’s profitability.

This is because of operating leverage.

Answer 43

d)1.

To determine

The kind of cost structure produces the greater growth potential in the profitability of the company.

Answer 44

d)1.

Expert Solution

Explanation of Solution

The fixed cost structure produces the higher growth potential in company’s profitability.

This is because of operating leverage.

Answer 45

d)1.

Expert Solution

Answer 46

d)1.

Expert Solution

Answer 47

Expert Solution

Answer 48

2.

To determine

The type of cost structure produces the higher risk of company’s declining profitability.

2.

Expert Solution

Explanation of Solution

The fixed cost structure produces the higher risk of company’s declining profitability.

This is because of operating leverage.

Answer 49

2.

To determine

The type of cost structure produces the higher risk of company’s declining profitability.

Answer 50

2.

Expert Solution

Explanation of Solution

The fixed cost structure produces the higher risk of company’s declining profitability.

This is because of operating leverage.

Answer 51

2.

Expert Solution

Answer 52

2.

Expert Solution

Answer 53

Expert Solution

Answer 54

3.

To determine

The circumstances under which the company pursue to establish a fixed cost structure

3.

Expert Solution

Explanation of Solution

The circumstances where the sales of the company expected to raise are where the fixed cost structure is established.

Answer 55

3.

To determine

The circumstances under which the company pursue to establish a fixed cost structure

Answer 56

3.

Expert Solution

Explanation of Solution

The circumstances where the sales of the company expected to raise are where the fixed cost structure is established.

Answer 57

3.

Expert Solution

Answer 58

3.

Expert Solution

Answer 59

Expert Solution

Answer 60

4.

To determine

The circumstances under which the company pursues to establish a variable cost structure

4.

Expert Solution

Explanation of Solution

The circumstances where the sales of the company expected to drop are where the variable cost structure is established.

Answer 61

4.

To determine

The circumstances under which the company pursues to establish a variable cost structure

Answer 62

4.

Expert Solution

Explanation of Solution

The circumstances where the sales of the company expected to drop are where the variable cost structure is established.

Answer 63

4.

Expert Solution

Answer 64

4.

Expert Solution

Answer 65

Expert Solution

Answer 66

Ch. 11 - 1.Define fixed cost and variable cost and give an...Ch. 11 - Prob. 2Q Ch. 11 - 3.Define the term operating leverage and explain...Ch. 11 - Prob. 4Q Ch. 11 - Prob. 5Q Ch. 11 - 6.If volume is increasing, would a company benefit...Ch. 11 - Explain the risk and rewards to a company that...Ch. 11 - 9.Are companies with predominately fixed cost...Ch. 11 - 10.How is the relevant range of activity related...Ch. 11 - Which cost structure has the greater risk?...

Determine the expected net income when 500 people buy the ticket

Determine the expected net income when 500 people buy the ticket

Explanation of Solution

Determine the net income and percentage change in net income if the sale of tickets is 10% higher than expected

Explanation of Solution

Determine the net income and percentage change in net income if the sale of tickets is 10% lower than expected and the fixed fee is $10,000.

Explanation of Solution

Determine the net income and percentage change in net income if School P pays Person L $20 per ticket sold. The sale of tickets is 10% higher than expected.

Explanation of Solution

Determine the net income and percentage change in net income if School P pays Person L $20 per ticket sold and the sale of tickets is 10% lower than expected.

Explanation of Solution

Discuss the discrepancies if any arises on the computation presented at the board by the spokesperson and by the other groups.

Explanation of Solution

The kind of cost structure produces the greater growth potential in the profitability of the company.

Explanation of Solution

The type of cost structure produces the higher risk of company’s declining profitability.

Explanation of Solution

The circumstances under which the company pursue to establish a fixed cost structure

Explanation of Solution

The circumstances under which the company pursues to establish a variable cost structure

Explanation of Solution

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