All company personnel can perform each service equally well

Assignment Help Accounting Basics

Reference no: EM13606481

Pet Palace provides two types of services to dog owners: grooming and training. All company personnel can perform each service equally well. To expand sales and market share, Pet Palace's manager, Jim Jones, relies heavily on radio and billboard advertising, but the 2010 advertising budget is expected to be very limited. Information on projected operations for 2010 follows.

Grooming Training
Revenue per billable hour $50 $70
Variable cost of labor $20 $41
Material cost per billable hour $6 $7
Allocated fixed cost per year $250,000 $260,000
Projected billable hours for 2010 30,000 20,000

a. What is Pet Palace's projected pre-tax profit (or loss) for 2010?
b. If $1 spent on advertising could increase grooming revenue by $20 or training revenue by $20, on which service should the advertising dollar be spent?
c. If $1 spent on advertising could increase either grooming billable time or training billable time by 1 hourr, on which service should the advertising dollar be spent?

Reference no: EM13606481

Questions Cloud

Wade corporation has been you audit client for several : wade corporation has been you audit client for several years. at the beginning of the current year the company changed

Long term partners pop ping and pam have capital balances : long term partners pop ping and pam have capital balances of 60000 45000 and 30000 respectively. they share in profits

Three point charges lie along a straight line as shown in : three point charges lie along a straight line as shown in the figure below where q1 5.76 microc q2 1.44 microc and q3

What is the minimum allowable volumetric flow rate of the : a computer consists of an array of five printed circuit boards pcbs each dissipating pb 20w of power. cooling of the

All company personnel can perform each service equally well : pet palace provides two types of services to dog owners grooming and training. all company personnel can perform each

What is the probability that one randomly selected rayovac : a popular flashlight that uses two d-size batteries was selected and several of the same models were purchased to test

What is the magnitude of the acceleration while the boulder : a large boulder is ejected vertically upward from a volcano with an initial speed of 40.2 ms. air resistance may be

Lighting is provided by 18 fluorescent bulbs 40 w each and : a classroom is occupied by 55 students and one instructor each generating heat at a rate of 100 w. lighting is provided

Lanora white received her accounting degree in 1992 since : lanora white received her accounting degree in 1992. since graduating she has obtained significan experience in a

User Account

All Pages