You run a hospital with 100 rooms. Fixed daily cost is $953.00 which includes staff salary, property charges, maintenance etc. Variable cost per room is $12.00 which includes cleaning, equipment rentals, utility cost etc. which is incurred only when the room is full. You charge $43.00 per room per day. You sold 44.00 rooms today, how much profit/loss did you earn for today.

You run a nail salon. Fixed monthly cost is $5,419.00 for rent and utilities, $5,913.00 is spent in salaries and $1,724.00 in insurance. Also every customer requires approximately $5.00 in supplies. You charge $107.00 on average for each service. You are considering moving the salon to an upscale neighborhood where the rent and utilities will increase to $11,155.00, salaries to $6,372.00 and insurance to $2,220.00 per month. Cost of supplies will increase to $6.00 per service. However you can now charge $171.00 per service. At what point will you be indifferent between your current location and the new location? Submit Answer format: Number: Round to: 2 decimal places. A Restaurant is open only for 25 days in a month. Expenses for the restaurant include raw material for each sandwich at $5.00 per slice, $1,103.00 as monthly rental and $219.00 monthly as insurance. They consider the cost of lost sales as $6.00 per item. They are able to sell any leftover sandwiches for $3. They prepares…

Currently, Sweet Treats Bakery sells 1,200 cupcakes per month. The owners would like to increase net income above what is currently earned. Fixed costs are $1,500 per month and their contribution margin is $3 per cupcake. What would be a reasonable net income goal? O $1,800 O $2,600 O $2,100 O $5,600

William Diesel owns the Fredonia Barber Shop. He employs 5 barbers and pays each a base salary of $1,510 per month. One of the barbers serves as the manager and receives an extra $580 per month. In addition to the base salary, each barber also receives a commission of $8.40 per haircut. Other costs are as follows. Advertising Rent Barber supplies Utilities Magazines William currently charges $18.00 per haircut. (a) Determine the unit variable costs per haircut and the total monthly fixed costs. (Round variable costs to 2 decimal places, e.g. 2.25.) Your answer is correct.. Total unit variable cost per haircut Total fixed costs (b) $300 per month $1,020 per month $0.45 per haircut $150 per month plus $0.15 per haircut $30 per month eTextbook and Media (d) V Your answer is correct. Break-even point Break-even point sales $ Compute the break-even point in sales units and in sales dollars. eTextbook and Media Your answer is incorrect. $ Net income $ $ 1070 19260 9 9630 haircuts Determine…

A 90-room motel has an average room rate of $64 and average occupancy of 77%. Its fixed costs are $800,000 a year, and its variable costs total $500,000. The owner wants to increase operating income from current level to $250,000. She decides to do the following adjustments: increase price by $6 spend $30,000 more per year on marketing to compensate for the higher room rate To motivate the staff, the owner also set a $2,000 reward to the best employee Send guest fruits to each room, which costs $5 per room How many rooms does she need to sell per night?

Figure 4-2.Pauley Company provides home health care. Pauley charges $35/hour for professional care. Variable costs are $21/hour and fixed costs are $78,000. Next year, Pauley expects to charge out 12,000 hours of home health care.Refer to Figure 4-2. What is the break-even point in hours? (round to the nearest whole hour)     2,229     1,393     3,714     5,571     12,000

2. You are considering starting a radiology practice. Your financial projections for the first year of operations are as follows (see problem 1): Number of visits Wages and benefits Medical supplies Rent Utilities Administrative supplies Totals Fixed $1,200,000 $0 $200,000 $36,000 $0 $1,436,000 0 2,500 5,000 7,500 10,000 12,500 24,000 visits 15,000 17,500 20,000 22,500 25,000 27,500 30,000 Variable $0 $300,000 $0 $0 Furthermore, assume that the group expects to perform 24,000 procedures in the coming year at an average of $150 per visit. a. Construct the group's base case projected P&L statement. (See exhibit 5-5). b. What is the group's contribution margin per visit? c. What is the group's breakeven point in volume (number of visits? d. What volume is required to provide an operating profit of $267,125? e. What is the group's operating leverage? $30,000 $330,000 f. Provide an interpretation of the calculated operating leverage and its implication in regard to business risk. g. Sketch…

Dr. MaGoo performs laser surgery to correct eye vision. He charges $800 for eye surgery (for a pair of eyes): Variable cost per eye surgery (per pair of eyes) are:  Medical Supplies       $35.00   Nurses time       65.00   Utilities for the machine     10.50   Variable marketing and administrative costs 24.50   The income tax rate is     30%   Fixed overhead cost is $100,000 per year. Fixed selling and administrative costs are $25,000 per year. Dr. MaGoo performed 400 corrective eye surgeries last year. a. What is the contribution margin per eye surgery? b. Suppose that Dr. MaGoo wants to make a profit (after tax) of $100,000, how many eye surgeries must be sold? (Round to nearest dollar for tax calculation)   c. Suppose that Dr. MaGoo has another option available, which uses a scalpel (cut and sew option) rather than the laser (laser option). This option reduces the fixed costs by $49,950 per year and  increases variable cost by $150 per surgery. Assume 333 is the number…

For a table manufacturing company, selling price for a table is $22.00 per Unit, Variable cost is $6.00 per Unit, labor charge is $1.00 per Unit, rent is $515.00 per month and transportation is $1 per tables. If 337.00 tables are sold in a month how much revenue company earns for that month? 2:You run a hospital with 100 rooms. Fixed daily cost is $818.00 which includes staff salary, property charges, maintenance etc. Variable cost per room is $12.00 which includes cleaning, equipment rentals, utility cost etc. which is incurred only when the room is full. You charge $58.00 per room per day. You sold 31.00 rooms today, how much profit/loss did you earn for today.

Pauley Company provides home health care. Pauley charges $85/hour for professional care. Variable costs are $29/hour and fixed costs are $78,000. Next year, Pauley expects to charge out 12,000 hours of home health care. What is the break-even point in hours? (Round to the nearest whole hour.)