Walton Condos Corporation is a small company owned by Dennis Hatch. It leases three condos of differing sizes to customers as vacation facilities. Labor costs for each condo consist of maid service and maintenance cost. Other direct operating costs consist of interest and depreciation. The direct operating costs for each condo follow. Condo 1 Condo 2 Condo 3 Total Direct Labor $ 17,300 18,600 26,000 $ 61,900 Other Direct Operating Costs $ 44,800 51,000 64,500 $ 160,300 Indirect operating expenses, which amounted to $40,075, are allocated to the condos in proportion to the amount of other direct operating costs incurred for each. Required a. Assuming that the amount of rent revenue from Condo 2 is $110,000, what amount of income did it earn? Note: Do not round intermediate calculations. Income earned
Walton Condos Corporation is a small company owned by Dennis Hatch. It leases three condos of differing sizes to customers as vacation facilities. Labor costs for each condo consist of maid service and maintenance cost. Other direct operating costs consist of interest and depreciation. The direct operating costs for each condo follow. Condo 1 Condo 2 Condo 3 Total Direct Labor $ 17,300 18,600 26,000 $ 61,900 Other Direct Operating Costs $ 44,800 51,000 64,500 $ 160,300 Indirect operating expenses, which amounted to $40,075, are allocated to the condos in proportion to the amount of other direct operating costs incurred for each. Required a. Assuming that the amount of rent revenue from Condo 2 is $110,000, what amount of income did it earn? Note: Do not round intermediate calculations. Income earned
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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