User Account

All Pages

What enrollment will enable alameda tile to break even

Assignment Help Accounting Basics
Reference no: EM133085820

Question - Alameda Tile sells products to many people remodeling their homes and thinks that it could profitably offer courses on tile installation, which might also increase the demand for its products. The basic installation course has the following (tentative) price and cost characteristics.

Tuition $ 490 per student

Variable costs (tiles, supplies, and so on) 290 per student

Fixed costs (advertising, salaries, and so on) 96,000 per year

Required -

a. What enrollment will enable Alameda Tile to break even?

b. How many students will enable Alameda Tile to make an operating profit of $50,000 for the year?

c. Assume that the projected enrollment for the year is 810 students for each of the following (considered independently):

1. What will be the operating profit (for 810 students)?

2. What would be the operating profit if the tuition per student (that is, sales price) decreased by 7 percent? Increased by 23 percent?

3. What would be the operating profit if variable costs per student decreased by 11 percent? Increased by 16 percent?

4. Suppose that fixed costs for the year are 6 percent lower than projected, whereas variable costs per student are 9 percent higher than projected. What would be the operating profit for the year?

Reference no: EM133085820

Questions Cloud

What is the book value of this machine : Lulu Inc. uses double declining depreciation method. It acquired a machine at $5,000 on January 1, 2010. What is the book value of this machine
Calculate the depreciable basis of property : Calculate the depreciable basis of this property and the annual depreciation allowance.
Advertising of consumer products such as bottled water : What agency(ies) and regulation(s) govern advertising of consumer products such as bottled water?
Case-johnson controls : Read the case Johnson Controls and the section 9.3 Reproductive Hazards and answer the following questions.
What enrollment will enable alameda tile to break even : Fixed costs (advertising, salaries, and so on) 96,000 per year. What enrollment will enable Alameda Tile to break even
Diversity management in globalized economy : Explain the type of analyses conducted? Explain why and how you selected the data to be collected/analyzed?
Differentiate areas of corporate social responsibility : Evaluate the given corporate social responsibility impacts on the business activities. Describe the U.S. national and international trends in CSR,
What is the break-even point : What is the break-even point? What sales dollars will be required to make $180,000? To make $450,000
Regression analysis with assessment value : Use the data to construct a model that predicts the tax assessment value assigned to medical office buildings with specific characteristics.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd