User Account

All Pages

What is the contribution margin per hour

Assignment Help Accounting Basics
Reference no: EM132103799

Question - Plentygood Company provides two levels of advising services. The costs below are computed at the average monthly volume of 5,000 advising hours for each type of service.

Basic

Deluxe

Revenues per hour

275

590

Variable cost per hour

115

180

Common fixed costs per hour

42

276

1. What is the contribution margin per hour for the Basic service?

2. What is the contribution margin per hour for the Deluxe service?

3. At this level of activity, what is the net income per hour for the Basic service?

4. At this level of activity, what is the net income per hour for the Deluxe service?

5. Which service should Plentygood try to promote if more opportunity exists in both areas? Type Deluxe or Basic

6. By how much will income change if 100 additional Deluxe advising hours are generated next month?

7. If Basic advising hours double next month, what will be the net income per hour for the Basic service?

Reference no: EM132103799

Questions Cloud

How come the share price : a. How come the share price doesn't drop when new debt is taken on?
How are the articles complementary and contradictory : Briefly (!) describe the sample and the research design/type of data. What were the major findings? Was the hypothesis supported?
Discuss the relevant costs you would consider : Pretend you are a manager of Coca-Cola. Discuss the relevant costs you would consider for this decision as well as irrelevant costs and sunk costs
What are the net sales : B&B Lumber reports gross sales of $80,000. If sales returns and allowances are $20,000 and sales discounts are $3,000, what are the net sales
What is the contribution margin per hour : Plentygood Company provides two levels of advising services. What is the contribution margin per hour for the Basic service
Arithmetic and geometric average return : What's the difference between the arithmetic and geometric average return (conceptually, not mathematically), and when is it best to use each?
Identical straight bond : What can you say about the coupon rate on a callable bond compared to an otherwise identical straight bond? Why?
Topic of security markets and finance : When on the topic of security markets and finance, when looking at coupon rate on a callable bond compared to an otherwise
Topic of security markets and finance : Why does market efficiency matter in the stock market? On the topic of security markets and finance.

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