Relax Spas provides two types of massage services, the Full Body and the Trouble Spots, with unit contribution margins of $198 and $90, respectively. Regardless of type, each massage requires the use of a certified masseuse. Relax Spas has four masseuses on staff who each work 1,500 hours per year. Each Full Body massage uses 90 minutes of masseuse time, and each Trouble Spot massage uses 30 minutes of masseuse time. [Note: For all answers that are less than 1.0, round the answer to two decimal places. For all unit answers (e.g., the answer is greater than 1.0), round the answer to the nearest whole number.] Refer to the information for Relax Spas above. Assume that a maximum of 8,000 massages of each type can be sold. Required: What is the contribution margin per hour of masseuse time for each type of massage? What is the optimal mix of massages? What is the total contribution margin earned for the optimal mix?

Radig Travel offers helicopter service from suburban towns to John F. Kennedy International Airport in New York City. Each of its fourteen helicopters makes between 1,100 and 2,200 ​round-trips per year. The records indicate that a helicopter that has made 1,100 ​round-trips in the year incurs an average operating cost of $500 per​ round-trip, and one that has made 2,200 ​round-trips in the year incurs an average operating cost of $400 per​ round-trip.   Read the requirements LOADING... .   Requirement 1. Using the​ high-low method, estimate the linear relationship y=a+bX​, where y is the total annual operating cost of a helicopter and X is the number of​ round-trips it makes to JFK airport during the year.     =   +     Requirement 2. Give examples of costs that would be included in a and in b.   Begin by selecting which type of costs ​"a​" and ​"b​" ​represent, then select the costs that correlate with that cost​ type, use each cost only once.…

The Konopka Company has three product lines of belts-A, B, and C-with contribution margins of $4, $3, and $2, respectively. The president foresees sales of 150,000 units in the coming period, consisting of 15,000 units of A, 75,000 units of B, and 60,000 units of C. The company's fixed costs for the period are $351,000. Read the requirements. Requirement 3. What would operating income be if 15,000 units of A, 60,000 units of B, and 75,000 units of C were sold? What is the new breakeven point in units if these relationships persist in the next period? Begin by completing the table below to calculate operating income. A B 15,000 60,000 $ 60,000 180,000 $ 75,000 150,000 Total 150,000 390,000 351,000 39,000 Units sold Contribution margin Fixed costs Operating income Now determine the new sales mix. For every 1 unit of A, 4 units of B are sold, and 5 units of C are sold. Now calculate the breakeven point in bundles for this requirement, then determine the breakeven point for each product…

Thornton Health Care Center Incorporated has three clinics servicing the Seattle metropolitan area. The company's legal services department supports the clinics. Moreover, its computer services department supports all of the clinics and the legal services department. The annual cost of operating the legal services department is $331,000. The annual cost of operating the computer services department is $292,600. The company uses the number of patients served as the cost driver for allocating the cost of legal services and the number of computer workstations as the cost driver for allocating the cost of computer services. Other relevant information follows. Number of Patients:Number of Workstations Sewell clinic 6, 500 : 7 Alphretta clinic 5, 600: 11 Gwinnett clinic 6,300 : 14 Legal services 6 Computer services 18 Required Allocate the cost of computer services to all of the clinics and the legal services department. After allocating the cost of computer services, allocate the cost of…

Talon Services offers standardized job counseling services. The company is planning a new service line targeted to active seniors who are retiring and looking forward to a new career. The service will sell for a flat $971 per client and will consist of a standardized offering. The service will consist of a total of 9 hours with a counseling specialist and a battery of tests to assess interests and aptitudes. Counseling specialists, who are contract employees, are paid $34 per hour. The testing is estimated to cost $131 per client. Administrative costs for the new service have not been estimated, but the company has collected Information on counseling hours and administrative costs for other services over the past 15 months. The following is a summary of a simple regression of administrative costs on counseling hours: Simple Regression Analysis Results Dependent variable-Administrative costa (monthly) Independent variable-Counseling hours (monthly) Computed values Intercept Coefficient…

Wildhorse Repairs has 200 auto-maintenance service outlets nationwide. It performs primarily two lines of service: oil changes and brake repair. Oil change-related services represent 70% of its sales and provide a contribution margin ratio of 20%. Brake repair represents 30% of its sales and provides a 40% contribution margin ratio. The company's fixed costs are $13,416,000 (that is, $67,080 per service outlet). Sales mix is determined based upon total sales dollars.

Alter's Home Center (AHC) sells renovation and remodeling products to both contractors and individual home owners. One of the services AHC offers is delivery of the purchased products to the customer's work site. Because not all customers take advantage of the delivery service option, ACH adds 10 percent to the cost of the products purchased to cover the delivery cost. A business intern spent the summer at ACH. The intern's assignment was to analyze the delivery service and recommend a better way to charge customers for using it. The intern, who had studied activity-based costing, identified the following activities and the data related to them: Activity Picking order Delivering order Handling complaints Total delivery cost Cost Driver Number of items Number of orders Number of complaints Annual Cost $ 308,125 720,000 40,000 Annual Driver Volume 362,500 items 30,000 orders 160 complaints $ 1,068,125 The intern selected two customers, who were frequent customers, to use as an…

Blossom Repairs has 200 auto-maintenance service outlets nationwide. It performs primarily two lines of service: oil changes and brake repair. Oil change-related services represent 70% of its sales and provide a contribution margin ratio of 20% Brake repair represents 30% of its sales and provides a 40% contribution margin ratio. The company's fixed costs are $12,480,000 (that is $62,400 per service outlet). Sales mix is determined based upon total sales dollars. (a) Calculate the dollar amount of each type of service that the company must provide in order to break even. (Use Weighted Average Contribution Margin Ratio rounded to 2 decimal places ag 0.25 and round final answers to O decimal places, eg 2.510) Sales Dollars Needed Per Product Oil changes Brake repair

Joyce Murphy runs a courier service in downtown Seattle. She charges clients $0.60 per mile driven. Joyce has determined that if she drives 2,400 miles in a month, her total operating cost is $700. If she drives 3,500 miles in a month, her total operating cost is $810. Required: 1. Using the high-low method, determine Joyce's variable and fixed operating cost components. 2. Complete the contribution margin income statement for Joyce's service assuming she drove 1,550 miles last month. (Assume this falls within the relevant range of operations). Complete this question by entering your answers in the tabs below. Required 1 Required 2 Using the high-low method, determine Joyce's variable and fixed operating cost components. (Round your cost per unit answer to 2 decimal places.) Variable Cost per Mile Driven Fixed Cost

PDQ Repairs has 200 auto-maintenance service outlets nationwide. It performs primarily two lines of service: oil changes and brake repair. Oil change-related services represent 60% of its sales and provide a contribution margin ratio of 25%. Brake repair represents 40% of its sales and provides a 45% contribution margin ratio. The company's fixed costs are $15,589,200 (that is, $77,946 per service outlet). Your answer is incorrect. Calculate the dollar amount of each type of service that the company must provide in order to break even. (Use Weighted- Average Contribution Margin Ratio rounded to 2 decimal places e.g. 0.25 and round final answers to 0 decimal places, e.g. 2,510.) Oil changes Brake repair %24