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You are the owner of a parasailing company that is expanding operations to a new beachfront location, and you need to make a 3-year analysis for the bank that may loan you the funds to purchase your boat and parasailing equipment. A lot of business is done on a referral basis, where a company pays a fee to a 3rd party to send them customers. However, because of your well-established reputation, you already have received requests for "flights" to be scheduled as soon as you open the new location. Therefore, you expect to break-even the first year but must calculate the number of flights needed.
Question 1: You also need to determine the new break-even point in Year 2 if the location allows referrals, which you believe will cost on average about 2% of the sales price overall. Finally, you need to determine the volume needed to have $10,000 in profit in Year 3. The following information is available:
Critics of absorption costing have increasingly emphasized its potential for leading to undesirable incentives for managers. Give an example.
Calculate the total production costs of the Disney Project using traditional costing, when manufacturing overhead is applied at 125% of direct labour cost.
If you were the Board of Directors, overseeing this firm's CEO, what would you do to prevent this "overproduction" from taking place simply to enhance his or her bonus?
you are the senior management accountant at johnnos sportsworld co. jsc a retailer of sporting equipment and the ceo
How does the look on a physical flow schedule? The information was obtained for the grinding department of Harlan Company for May
What is the difference between a contribution format income statement and a traditional?
Forbes has a target profit of P36,000 and expects to sell 30,000 units. Compute the selling price Forbes must charge to earn the target profit.
Fixed the companies selling and administrative expenses are $280000 variable and $340000 fixed. if the company's sale sales is $1540000, what is its net income
problem 1the green acres inn is trying to determine its break-even point. the inn has 50 rooms that it rents at 75a
On that date, the financial statements were prepared. The balance sheet reported total assets of $56,150.00 and total stockholders equity of $38,300.
What are job-order costing and process costing? What types of firms use job-order costing? Process costing? Give some examples of service firms that might use job-order costing, and explain why it is used in those firms.
What is the difference between residual income and EVA?
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