Laura's Cutting Station offers a new concept in haircuts; low cost and very quick. Set in a local mall, Laura's offers 15-minute haircuts for harried shoppers who do not have time for lengthy appointments. To ensure that the clients are in and out quickly, she schedules her 5 employees based on expected client traffic. Each of the employees is paid $1270 per month, with part of their pay coming from client tips. Laura pays rent and overhead costs of $2200 per month on the facility. Because of the quick nature of the service, Laura doesn't have time to clean combs in between clients, so she uses a new comb for each customer, at a cost of $0.70 each. She also provides shampoo and conditioner for each client at a cost of $1.10 per client. The average price for a haircut is $14. Laura pays herself $5300 per month. What is Laura's contribution margin per haircut?
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- Sharon’s Cutting Station offers a new concept in haircuts; low cost and very quick. Set in a local mall, Sharon’s offers 15-minute haircuts for harried shoppers who do not have time for lengthy appointments. To ensure that the clients are in and out quickly, she schedules her 5 employees based on expected client traffic. Each of the employees is paid $1220 per month, with part of their pay coming from client tips. Sharon pays rent and overhead costs of $2400 per month on the facility. Because of the quick nature of the service, Sharon doesn’t have time to clean combs in between clients, so she uses a new comb for each customer, at a cost of $0.50 each. She also provides shampoo and conditioner for each client at a cost of $1.05 per client. The average price for a haircut is $13. Sharon pays herself $5600 per month. What is Sharon’s contribution margin per haircut? $11.45 $11.95 $12.50 $11.15Sharon's Cutting Station offers a new concept in haircuts; low cost and very quick. Set in a local mall, Sharon's offers 15-minute haircuts for harried shoppers who do not have time for lengthy appointments. To ensure that the clients are in and out quickly, she schedules her 5 employees based on expected client traffic. Each of the employees is paid $1220 per month, with part of their pay coming from client tips. Sharon pays rent and overhead costs of $2400 per month on the facility. Because of the quick nature of the service, Sharon doesn't have time to clean combs in between clients, so she uses a new comb for each customer, at a cost of $0.60 each. She also provides shampoo and conditioner for each client at a cost of $1.05 per client. The average price for a haircut is $15. Sharon pays herself $5600 per month. What is Sharon's contribution margin ratio? 89.0% 85.8% O 12.0% O 11.0%What are Jenny’s fixed costs for the month? Jenny’s Cutting Station offers a new concept in haircuts; low cost and very quick. Set in a local mall, Jenny’s offers 15-minute haircuts with a shampoo for harried shoppers who do not have time for lengthy appointments. To ensure that the clients are in and out quickly, Jenny schedules her 5 employees based on expected client traffic. Each of the employees is paid $1200 per month, with part of their pay coming from client tips. Jenny pays rent and overhead costs of $2000 per month for the facility. Because of the quick nature of the service, Jenny doesn’t have time to clean combs in between clients, so she uses a new comb for each customer, at a cost of $0.55 each. She also provides shampoo and conditioner for each client at a cost of $0.95 per client. The average price for a haircut is $12. Jenny pays herself $5000 per month.
- The Print Shop provides copying services to the general public. The Print Shop has equipmentwhich is capable of making 1,800 copies per hour. The practical capacity of the equipment is7 hours per day due to set up time and time to re-supply paper and toner.Customers expect quick service. If copies cannot be made within an hour, the customer willtake their job elsewhere. The Print Shop has an excellent location and as such the business hasa fairly steady demand of 10,000 copies per day. The shop charges 25 cents a copy and has atotal variable cost of 22 cents per copy.Required:(a) At 8 a.m. one morning a customer brings in 5,000 pages to be copied. The customer hasrequested that the copies be available by closing time. For this one-time order, the customerwill only pay 24 cents per copy. Prepare a financial analysis to determine whether the ordershould be accepted. (b) Calculate the largest order from this customer that the shop could accept at 24 cents percopy and still earn a normal…Alice Trading runs 10 branches and pays for a variety of expenses. Zabrina, the Accounts Payable Clerk of Alice Trading writes the checks for each supplier and the Accounting Manager signs the checks. Zabrina decided she needs a raise and the Manager told her to wait for six months. Zabrina devised a plan to get a raise on her own. She created a new supplier account for her friend’s business, Prime Auto Parts. Zabrina also created two purchase orders for Prime Auto Parts for ₱20,000 and ₱15,000 and wrote checks to pay these invoices. She knows the Manager will sign all checks only looking at the checks over ₱30,000. She delivers the checks to her friend who will encash the checks and give the money to Zabrina. Is this a good way for Zabrina to obtain a raise? Eventually, what will be the effect of her actions? How can Jiffy prevent this type of incident?Elliott, Inc., has four salaried clerks to process purchase orders. Each clerk is paid a salary of 25,750 and is capable of processing as many as 6,500 purchase orders per year. Each clerk uses a PC and laser printer in processing orders. Time available on each PC system is sufficient to process 6,500 orders per year. The cost of each PC system is 1,100 per year. In addition to the salaries, Elliott spends 27,560 for forms, postage, and other supplies (assuming 26,000 purchase orders are processed). During the year, 25,350 orders were processed. Required: 1. Classify the resources associated with purchasing as (1) flexible or (2) committed. 2. Compute the total activity availability, and break this into activity usage and unused activity. 3. Calculate the total cost of resources supplied (activity cost), and break this into the cost of activity used and the cost of unused activity. 4. (a) Suppose that a large special order will cause an additional 500 purchase orders. What purchasing costs are relevant? By how much will purchasing costs increase if the order is accepted? (b) Suppose that the special order causes 700 additional purchase orders. How will your answer to (a) change?
- You are a management accountant for Time Treasures Company, whose company has recently signed an outsourcing agreement with Spotless. Inc., a janitorial service company. Spotless will provide all of Time Treasures janitorial services, including sweeping floors, hauling trash, washing windows, stocking restrooms, and performing minor repairs. Time Treasures will be billed at an hourly rate based on the type of service performed. The work of common laborers (sweeping, hauling trash) is to be billed at $8 per hour. More skilled (repairs) and more dangerous work (washing outside windows on the 23rd floor) are to be billed at $18 per hour. Supervisory time is to be billed at $20 per hour. Spotless will submit monthly invoices, which will show the number and types of hours for which Time Treasures is being charged. The outsourcing contract is simple and straightforward. A. What are some of the internal control problems you foresee as a result of our sourcing the janitorial service with this contract? B. Explain recommendations to control risk that would you suggest after reviewing the contract.Myrna White is a mobile housekeeper. The price for a standard house cleaning is $150 and takes 5 hours. Each worker is paid $25/hour, uses $15 of materials and $0.50 per mile to use their own vehicle to travel from job to job. The average job is 5 miles. Arniz Meyroyan has a family reunion at her house and needs her house freshened up. She offers $75 for this emergency tidy-up service. This service includes vacuuming and cleaning floors, dusting, and cleaning the bathrooms. Only $5 of materials would be used. A. Prepare an Excel spread sheet to determine the differential income if the emergency tidy-up service is priced at $75. The tidy-up service will take 2 hours. B. If a $25 surcharge was included to make the price of $100 how would the differential income change? C. If the hourly worker rate increased to $30/hour, how would net income change? D. What other issue would you need to consider?Garrison Boutique, a small novelty store, just spent $4,000 on a new software program that will help in organizing its inventory. Due to the steep learning curve required to use the new software, Garrison must decide between hiring two part-time college students or one full-time employee. Each college student would work 20 hours per week, and would earn $1 S per hour. The full-time employee would work 40 hours per week and would earn $15 per hour plus the equivalent of $2 per hour in benefits. Employees are given two polo shirts to wear as their uniform. The polo-shirts cost Garrison $10 each. What are the relevant costs, relevant revenues, sunk costs, and opportunity costs for Garrison?
- Madison is the newly appointed manager of spark communication a small computer monitor manfacturing company based out of halifox nova Scottia. During her first few days on the jobs she collected the following data about the company. The company has the capacity to produce 750 monitors per month and is currently producing 525monitors every month and selling it to wholesaler The company is expenses are :rent $4000 per month, salaries of $12500 per month, insurance of $1500 per month , material is of $6 permonth, labour of $35 per month and sales commissions of $19 per month. Each month is sold for $105. a. What is the contribution margin and the contribution rate? b. What is the break even volume and break even revenue per month? c. How much net income per month we earned at the current level of presentation.?A computer store sells two types of laptops, an all-purpose laptop and a gaming laptop. The supplier demands that at least 150 of these laptops be sold each month. Experience shows that most consumers prefer all-purpose laptops, but some younger consumers prefer gaming laptops. The result is that the number of all-purpose laptops sold is at least twice the number of gaming laptops sold. The store pays its sales staff a $52.86 commission for each all-purpose laptop sold and a $49.4 commission for each gaming laptop sold. How many of each type of laptop should be sold to minimize commission? What is that minimum monthly commission? All-purpose laptops: Gaming laptops: Commission (dollars): 000Janice Huffman has decided to start Rundle Cleaning, a residential housecleaning service company. She is able to rent cleaning equipment at a cost of $760 per month. Labor costs are expected to be $90 per house cleaned and supplies are expected to cost $6 per house. Required a. Determine the total expected cost of equipment rental and the average expected cost of equipment rental per house cleaned, assuming that Rundle Cleaning cleans 20, 30, or 40 houses during one month. Is the cost of equipment a fixed or a variable cost? b. Determine the total expected cost of labor and the average expected cost of labor per house cleaned, assuming that Rundle Cleaning cleans 20, 30, or 40 houses during one month. Is the cost of labor a fixed or a variable cost? c. Determine the total expected cost of supplies and the average expected cost of supplies per house cleaned, assuming that Rundle Cleaning cleans 20, 30, or 40 houses during one month. Is the cost of supplies a fixed or a variable cost? d.…