Identification of variable, semi-variable, and fixed costs.*Provide total VC/unit, total FC, and Semi-VC here as well. q 1. Breakeven in units.q 2. Breakeven in Salesq 3. Units including Target profitq 4. Income statement as at Dec.31, 202xV&A Carpet cleaning (Finney Franchise)based on units from Q3 with target profit /dist/#/book/11981Homepage - eCone...CASE 2: V & A CARPET CLEANING SERVICESIn March 2003, Vincent and Anne-Marie Finney started their carpet-cleaning services business in Toronto. The business was geared primarily atyoung couples, a market that they felt was growing rapidly. Vincent and Anne-Marie had worked during the previous 10 years as salariedemployees for different types of organizations. They were frustrated with the fact that their future was in the hands of employers, so theydecided to start V & A Carpet Cleaning Services. After 10 years of tremendous success in the business, the couple decided to launch a franchise.They placed advertisements in different daily newspapers across Canada promoting the franchise business. Bill and Jill Robinson of Ottawasaw the advertisement and called V & A for information about the economics and advantages of managing a carpet-cleaning franchise operation.The Finneys provided the following information:●.0●●6DAverage revenue for cleaning carpets in each household is $120.A 20% sales commission per contract is secured by a sales representative.Other costs include the following:●A $1,400 monthly salary for office employees.A $500 yearly expense for various insurance policies.• A $125 monthly expense for utilities and telephone.A yearly $10,000 fee for the franchise.A $5.00 franchise fee for each household cleaned.0Machine operators receive $30 for cleaning the carpets in each household.Average costs for gas and maintenance for trucks for each household is $5.50.Maintenance charges are $400 per machine for each 100 houses cleaned.Monthly rental charges for office and small warehouse for inventories is $1,200.Annual depreciation for the equipment is $500.Monthly salary paid to Bill and Jill would total $3,500.●

The point at which total revenue and total costs are equal is known as the break-even point. It is…

Identification of variable, semi-variable, and fixed costs.*Provide total VC/unit, total FC, and Semi-VC here as well. q 1. Breakeven in units. q 2. Breakeven in Sales q 3. Units including Target profit q 4. Income statement as at Dec.31, 202x

Identification of variable, semi-variable, and fixed costs.*Provide total VC/unit, total FC, and Semi-VC here as well. q 1. Breakeven in units. q 2. Breakeven in Sales q 3. Units including Target profit q 4. Income statement as at Dec.31, 202x

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter3: Corporations: Introduction And Operating Rules

Section: Chapter Questions

Problem 2TRP

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