Dog Google DocsHW 72BookPrietReferencesYouTubeSavedM7-3 (Static) Identifying Relevant and Irrelevant Costs [LO 7-2]Isabella Canton is considering taking a part-time job at a local clothing store. She loves the store and shops there often, butunfortunately, employee discounts are given only to full-time employees. If Isabella takes this job, she would have to withdraw from herTuesday night basket-weaving class to work. Accepting the job also would mean that Isabella must give up her volunteer work at thelocal animal sanctuary, an activity she enjoys a great deal. The new job would pay approximately $125 per week but would costIsabella $15 per week in gas. Isabella would be able to keep her Saturday afternoon job at the library that pays $40 per week.Required:A list of factors Isabella has identified follows. For each one, indicate whether it is relevant or irrelevant to Isabella's decision.1. The $125 income from the new job2. The $40 income from the library.3. The $50 nonrefundable registration fee Isabella paid for the basket-weaving class.4. The $15 cost for gas5. The $75 per month Isabella spends for clothing6. The time Isabella spends volunteering at the animal sanctuary.Help SaVA

Relevant costs are future-oriented and play an important role in decision-making since they give…

Answered: Book Priet erences M7-3 (Static)…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 5PB: Blake Cohen Painting Service specializes in small paint jobs. His normal charge is $350/day plus...

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displaying at a craft fair, a representative of a mail order catalog company wants to put your product in the catalog. It will pay you $40 and mark up the product to $55 for the catalog. It estimates that your market share could be substantial and should be dependent only on your production output. You decide to quit your real job and devote all your time to making wreaths, but you want to match your current $50,000 salary. You really don’t want to work more than 40 hours per week in actual wreath manufacturing (assume all paperwork, material purchasing, and such takes place beyond those 40 hours). You want four weeks a year for vacation, holidays, and sick days or personal days. Taking into consideration time constraints, the price you will get from the catalog company, and your revised costs, does this make sense? Assume each wreath has $5 costs and takes one hour to construct.
Suppose Frances earns $825 per week working as a programmer for PC Pros. She uses $9 to buy a box of aspirin at Pillmart Pharmacy. Pillmart Pharmacy pays Dmitri $450 per week to work the cash register. Dmitri uses $175 to purchase software from PC Pros. Identify whether each of the following events in this scenario occurs in the factor market or the product market. Event Factor Market Product Market Frances spends $9 to buy a box of aspirin. Frances earns $825 per week working for PC Pros. Dmitri spends $175 to purchase software from PC Pros. Which of the elements of this scenario represent a flow from a firm to a household? This could be a flow of dollars, inputs, or outputs. Check all that apply. a. Frances's labor b. The $450 per week Dmitri earns working for Pillmart Pharmacy c. The aspirin Frances receives d. The $175 Dmitri spends to purchase software from PC Pros
Frank Pepe’s Restaurant and Pie Shop needs help defining the costs for his business. Frank also wants to know which costs are relevant or irrelevant to his decision making. Identify each cost as relevant or irrelevant. Then identify the type of cost (sunk, fixed, variable, or opportunity). Cost Relevant or irrelevant sunk, fixed, variable, or opportunity Rent baker wages franks culinary school tuition Berries for pies paiting dining area last year franks decision not to attend graduate school
Variable costs, fixed costs, total costs. Bridget Ashton is getting ready to open a small restaurant. She is on a tight budget and must choose between the following long-distance phone plans: Plan A: Pay 10 cents per minute of long-distance calling. Plan B: Pay a fixed monthly fee of $15 for up to 240 long-distance minutes and 8 cents per minute thereafter (if she uses fewer than 240 minutes in any month, she still pays $15 for the month). Plan C: Pay a fixed monthly fee of $22 for up to 510 long-distance minutes and 5 cents per minute thereafter (if she uses fewer than 510 minutes, she still pays $22 for the month). 1. Draw a graph of the total monthly costs of the three plans for different levels of monthly long-distance calling.? 2. Which plan should Ashton choose if she expects to make 100 minutes of long-distance calls? 240 minutes? 540 minutes?
Check my work Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montana. For its services, the company has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $23.60 per hundred square feet. However, there is some question about whether the company is actually making any money on jobs for some customers-particularly those located on remote ranches that require considerable travel time. The owner's daughter, home for the summer from college, has suggested investigating this question using activity-based costing. After some discussion, she designed a simple system consisting of four activity cost pools. The activity cost pools and their activity measures appear below: Activity Cost Pool Cleaning carpets Travel to jobs Job support Other (organization-sustaining costs and idle capacity costs) Activity Measure Square feet cleaned (00s) Activity for the Year 14, 500 hundred square feet Miles driven 308,000 miles Number of…
Jimmy’s Suit House (JSH) rents out designer apparel to customers who want to wear formal suits on special events but are unwilling to purchase them. For example, a customer can rent a $1,000 suit for $25 per day for a 10-day rental period. To rent a suit, a customer visits the JSH website, which shows the available suits and their rental prices. The number of webpage views is surprisingly large, but not everyone finally rents. Many leave the website because of not finding the suits they like. On average, JSH sees the demand of 200 rental orders per day. To ensure that enough customers find suits, JSH keeps 1,600 suits in their Rental-Ready Inventory, including different styles and sizes. This number must be substantial due to the variety of suits JSH keeps and the policy that JSH ships two suits (same style in two different sizes) to satisfy a customer’s request for one suit. When taking a rental order, JSH requires that a customer specify two sizes for the requested suit—the most…
EA1. 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 $15 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 opportunity costs for Garrison?
Clothing Retail Store's accountant prepared the following income statement for the teenagers' accessories product line: Sales Less: Variable expenses Contribution margin Less: Fixed expenses: Wages Insurance on inventory Advertising Net operating income (loss) Sales $1,035,000 57,500 632,500 Management is concerned about the loss and is considering dropping the product line. If the product line is dropped, a job has to be created elsewhere for a long-term employee currently earning an annual salary of $101,500. Fixed expenses $2,875,000 1,351, 250 1,523,750 Required: Calculate the increase or decrease in the operating income in both alternatives. Net operating income (loss) 1,725,000 $ (201,250) Keep Accesories Product Line Drop Accesories Product Line
The Eastwood Cake Factory sells chocolate cakes, birthday decorated cakes, and specialty cakes. The factory is experiencing a bottleneck and is trying to determine which cake is more profitable. Even though the company may have to limit the orders that it takes, Eastwood is concerned about customer service and satisfaction. Chocolate Birthday Specialty Cake Cake Cake Sales price $20.00 $45.00 SE0.00 Variable cost per cake $5.00 $12.00 $20.00 Hours needed to bake, frast, and decorate 1 hour 2.5 hours 2 haurs Determine which cake the company should concentrate on producing first and then second and finally third. Select one: a. Birthcay, Chocolate, Specialty Ob. Specialty, Birthday, Chacolate c. Chocalate, Birthday, Specialty Od. Specialty, Chocolate, Birthday
Saved Help Mindy makes boots for Belleville Boot Factory. She is paid on the following differential pay scale: 1-50 = $ 1.65 51-150 = $ 3.30 151-200 = $ 4.95 Over 200 = $ 6.00 What is Mindy's pay if she produced 192 boots for the week? Multiple Choice $620.30 $702.90 $1,152.00 Prey 15 of 24 Next > ...
Cost Definitions Luisa Giovanni is a student at New York University. To help pay her way through college, Luisa started a dog walking service. She has 12 client dogssix are walked on the first shift (6:30 A.M. and 5:00 P.M.), and six are walked on the second shift (7:30 A.M. and 6:00 P.M.). Last month, Luisa noted the following: 1. Purchase of three leashes at 10 each (she carries these with her in case a leash breaks during a walk). 2. Internet service cost of 40 a month. This enables her to keep in touch with the owners, bill them by email, and so on. 3. Dog treats of 50 to reward each dog at the end of each walk. 4. A heavy-duty raincoat and hat for 100. 5. Partway through the month, Luisas friend, Jason, offered her a chance to play a bit role in a movie that was shooting on location in New York City. The job paid 100 and would have required Luisa to be on location at 6:00 A.M. and to remain for 12 hours. Regretfully, Luisa turned it down. 6. The dog owners pay Luisa 250 per month per dog for her services. Required: 1. At the end of the month, how would Luisa classify her Internet payment of 40as a cost on the balance sheet or as an expense on the income statement? 2. CONCEPTUAL CONNECTION Which of the above items is an opportunity cost? Why? 3. What price is charged? What is Luisas total revenue for a month?
Identifying Fixed, Variable, Mixed, and Step Costs Consider each of the following independent situations: a. A computer service agreement in which a company pays 150 per month and 15 per hour of technical time b. Fuel cost of the companys fleet of motor vehicles c. The cost of beer for a bar d. The cost of computer printers and copiers at your college e. Rent for a dental office f. The salary of a receptionist in a law firm g. The wages of counter help in a fast-food restaurant h. The salaries of dental hygienists in a three-dentist office. One hygienist can take care of 120 cleanings per month. i. Electricity cost which includes a 15 per month billing charge and an additional amount depending on the number of kilowatt-hours used Required: 1. For each situation, describe the cost as one of the following: fixed cost, variable cost, mixed cost, or step cost. (Hint: First, consider what the driver or output measure is. If additional assumptions are necessary to support your cost type decision, be sure to write them down.) Example: Raw materials used in productionVariable cost 2. CONCEPTUAL CONNECTION Change your assumption(s) for each situation so that the cost type changes to a different cost type. List the new cost type and the changed assumption(s) that gave rise to it. Example: Raw materials used in production. Changed assumptionthe materials are difficult to obtain, and a years worth must be contracted for in advance. Now, this is a fixed cost. (This is the case with diamond sales by DeBeers Inc. to its sightholders. See the following website for information: www.keyguide.net/sightholders/.)

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