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Questions -
1. A cafe specializes in short order meals; and, morning and afternoon snack breaks. It is open from 9:00 am until 4:00 pm. An office manager in a nearby high rise office building offers the owner a contract to provide her 50 employees with afternoon snack breaks for $2.00 each. Each employee would receive a drink and a snack item. The shop has an hourly capacity of 50 customers. The owner estimates that the variable costs of the afternoon breaks would be $1.20 each. Currently the afternoon service, starting at 2:00, is running at only 50 percent capacity, although the morning and noon activities are near capacity. At the present level of operations each meal/snack served is allocated a fixed cost of $0.25.
Required -
a. What nonfinancial factors should be considered by the owner?
b. Given your concerns listed in part a. and quantitative analysis, should the offer be accepted? Why or why not?
2. Doggie Dinner, Inc., currently manufactures three different types of scientifically balanced dog food. The firm is considering eliminating one of the three products. What factors should be taken into account in making this decision?
3. Explain the differences between short-run pricing decisions and long-run pricing decisions.
This budgeting exercise is similar to the initial phase in activity-based budgeting. Include a list of any assumptions you use in completing the budget.
2010 the bowwow company purchased 14038 units from its supplier at a cost of 11.09 per unit. bowwow sold 17756 units of
Review the convergence of United States Generally Accepted Accounting Principles and International Financial Reporting Standards.
firewalls are one of the most fundamental and important security tools. you are likely familiar with the software-based
Explain how revenue sources are planned and budgeted in nonprofits. What are at least 4 of the key revenue assumptions
The present value factor of a single sum for three periods at 4% is .88900, What amount will Sorel record as the lease liability at the inception of the lease
Suggest a plan for a client to increase the deductible pass through loss and deductions over the initial investment from a new wholly owned S corporation.
The machine will generate revenues of £600, £800, £800 and £800 in years 1, 2, 3 and 4 respectively. Calculate the Net Present Value of this machine to the firm
Work in process inventory, beginning of the year $35,000. Compute the amount of the work in process inventory on hand at year-end
Prepare an income statement and an owner's equity statement for the year. The owner did not make any new investments during the year.
If 15,000 units used 61,800 hours at an hourly rate of $19.85 per hour, what is the direct labor (a) rate variance? (b) time variance? (c) cost variance
quantacc ltd. began operations on january 1 2011 and uses ifrs to prepare its consoliated financial statements.
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