AUDITING & ASSURANCE SERVICES CONNECT AC
AUDITING & ASSURANCE SERVICES CONNECT AC
10th Edition
ISBN: 9781259292057
Author: MESSIER
Publisher: MCG
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Chapter 12, Problem 12.24P
To determine

Introduction: Segregation of duties is an important part of the internal control system. It helps in the distribution of duties in such a way that no individual handles more than one activity or each control only one controlled activity so that it helps in detecting misstatements.

The number of people that would be utilized and the types of duties that can be assigned to each person to help prevent errors and frauds in financial statements.

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Now suppose Elijah offers a discount on subsequent rooms for each house, such that he charges $40 for his frist room, $35 for his second, and $25 for each room thereafter. Assume 30% of his clients have only one room cleaned, 25% have two rooms cleaned, 30% have three rooms cleaned, and the remaining 15% have four rooms cleaned.  How many houses will he have to clean before breaking even? If taxes are 25% of profits, how many rooms will he have to clean before making $15,000 profit?                           Answer the question by making a CVP worksheet similar to the depreciation sheets. Make sure it works well, uses cell references and functions/formulas when appropriate, and looks nice.
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