Adelphia Brokers, a full service brokerage house, brought in William N. Thomas, a specialist in financial stock, to meet with their 15 brokers. Mr. Thomas charged a fee of $2,500 for the 4-hour session. The average hourly rate for the 15 brokers was $50.00 per hour. Lunch for the 15 brokers and Mr. Thomas was $14.50 per person. What was the total cost for the 4-hour financial stock training session?

Adelphia Brokers, a full service brokerage house, brought in William N. Thomas, a specialist in financial stock, to meet with their 15 brokers. Mr. Thomas charged a fee of $2,500 for the 4-hour session. The average hourly rate for the 15 brokers was $50.00 per hour. Lunch for the 15 brokers and Mr. Thomas was $14.50 per person. What was the total cost for the 4-hour financial stock training session?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter17: Activity Resource Usage Model And Tactical Decision Making

Section: Chapter Questions

Problem 6E: Elliott, Inc., has four salaried clerks to process purchase orders. Each clerk is paid a salary of...

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Elliott, Inc., has four salaried clerks to process purchase orders. Each clerk is paid a salary of 25,750 and is capable of processing as many as 6,500 purchase orders per year. Each clerk uses a PC and laser printer in processing orders. Time available on each PC system is sufficient to process 6,500 orders per year. The cost of each PC system is 1,100 per year. In addition to the salaries, Elliott spends 27,560 for forms, postage, and other supplies (assuming 26,000 purchase orders are processed). During the year, 25,350 orders were processed. Required: 1. Classify the resources associated with purchasing as (1) flexible or (2) committed. 2. Compute the total activity availability, and break this into activity usage and unused activity. 3. Calculate the total cost of resources supplied (activity cost), and break this into the cost of activity used and the cost of unused activity. 4. (a) Suppose that a large special order will cause an additional 500 purchase orders. What purchasing costs are relevant? By how much will purchasing costs increase if the order is accepted? (b) Suppose that the special order causes 700 additional purchase orders. How will your answer to (a) change?
Crane Diesel owns the Fredonia Barber Shop. He employs 7 barbers and pays each a base rate of $1,310 per month. One of the barbers serves as the manager and receives an extra $560 per month. In addition to the base rate, each barber also receives a commission of$5.85 per haircut. Other costs are as follows. Advertising $300 per month Rent $950 per month Barber supplies $0.50 per haircut $170 per month plus $0.15 per haircut $30 per month Utilities Magazines Crane currently charges $13 per haircut. Determine the variable costs per haircut and the total monthly fixed costs. (Round variable costs to 2 decimal places, eg. 2.25) Total variable cost per haircut Total fixed Compute the break-even point in units and dollars. Break-even point haircuts Break even seles
Sheridan Diesel owns the Fredonia Barber Shop. He employs 4 barbers and pays each a base rate of $ 1,570 per month. One of the barbers serves as the manager and receives an extra $ 500 per month. In addition to the base rate, each barber also receives a commission of $ 9.05 per haircut. Other costs are as follows. Advertising $ 270 per month Rent $ 1,060 per month Barber supplies $0.45 per haircut Utilities $ 195 per month plus $ 0.10 per haircut Magazines $ 15 per month Sheridan currently charges $ 16 per haircut. Determine the variable costs per haircut and the total monthly fixed costs. (Round variable costs to 2 decimal places, e.g. 2.25.) Total variable cost per haircut 2$ 9.6 Total fixed 24 8320 eTextbook and Media Compute the break-even point in units and dollars. Break-even point haircuts Break even sales 2$ eTextbook and Media Determine net income, assuming 1,590 haircuts are given in a month. Net income / (Loss) $
Mark Diesel owns the Fredonia Barber Shop. He employs 7 barbers and pays each a base salary of $1,200 per month. One of the barbers serves as the manager and receives an extra $560 per month. In addition to the base salary, each barber also receives a commission of $6.10 per haircut.Other costs are as follows. Advertising $270 per month Rent $970 per month Barber supplies $0.40 per haircut Utilities $175 per month plus $0.10 per haircut Magazines $20 per month Mark currently charges $12.00 per haircut. Determine the unit variable costs per haircut and the total monthly fixed costs. (Round variable costs to 2 decimal places, e.g. 2.25.) Total unit variable cost per haircut $enter total variable cost per haircut rounded to 2 decimal places in dollars Total fixed costs $enter total fixed cost in dollars
The direct cost of each hotel guest at Seaview hotel is $15 per night. The hotel manager has estimated that the average overhead cost per guest is $10 per night, based on 100 guest nights per week. The room price is $50 per night. A large group of 50 people have asked to spend one night at the hotel during a week when only 30 other guests are booked. The group of 50 has offered to pay a price of $20 each. Discuss whether the manager should accept the offer.
Classical Glasses operates a kiosk at the local mall, selling s unglasses for $30 each. Classical Glasses currently pays $1,000 a month to rent the space and pays two full-time employees to each work 160 hours a month at $10 per hour. The store shares a manager with a neighboring kiosk and pays 50% of the manager’s annual salary of $60,000 and benefits of $12,000. The wholesale cost of the sunglasses to the company is $10 a pair. Q1. How many sunglasses does Classical Glasses need to sell each month to break even?
Classical Glasses operates a kiosk at the local mall, selling s unglasses for $30 each. Classical Glasses currently pays $1,000 a month to rent the space and pays two full-time employees to each work 160 hours a month at $10 per hour. The store shares a manager with a neighboring kiosk and pays 50% of the manager’s annual salary of $60,000 and benefits of $12,000. The wholesale cost of the sunglasses to the company is $10 a pair. Q.Assume Classical Glasses pays its employees hourly under the original pay structure, but is able to pay the mall 10% of its monthly revenue instead of monthly rent. At what sales levels would Classical Glasses prefer to pay a fixed amount of monthly rent, and at what sales levels would it prefer to pay 10% of its monthly revenue as rent?
Classical Glasses operates a kiosk at the local mall, selling s unglasses for $30 each. Classical Glasses currently pays $1,000 a month to rent the space and pays two full-time employees to each work 160 hours a month at $10 per hour. The store shares a manager with a neighboring kiosk and pays 50% of the manager’s annual salary of $60,000 and benefits of $12,000. The wholesale cost of the sunglasses to the company is $10 a pair. Q.If the store’s hourly employees agreed to a 15% sales-commission-only pay structure, instead of their hourly pay, how many sunglasses would Classical Glasses need to sell to earn an operating income of $5,300?
Classical Glasses operates a kiosk at the local mall, selling s unglasses for $30 each. Classical Glasses currently pays $1,000 a month to rent the space and pays two full-time employees to each work 160 hours a month at $10 per hour. The store shares a manager with a neighboring kiosk and pays 50% of the manager’s annual salary of $60,000 and benefits of $12,000. The wholesale cost of the sunglasses to the company is $10 a pair. Q.If Classical Glasses wants to earn an operating income of $5,300 per month, how many sunglasses does the store need to sell?
Elliott, Inc., has four salaried clerks to process purchase orders. Each clerk is paid a salary of $25,750 and is capable of processing as many as 6,500 purchase orders per year. Each clerk uses a PC and laser printer in processing orders. Time available on each PC system is sufficient to process 6,500 orders per year. The cost of each PC system is $1,100 per year. In addition to the salaries, Elliott spends $27,560 for forms, postage, and other supplies (assuming 26,000 purchase orders are processed). During the year, 25,350 orders were processed. Required: 1. Which of the resources associated with purchasing can be classified as flexible resources? Forms, Postage and Supplies Which of the resources associated with purchasing can be classified as committed resources? PC system and clerks 2. Compute the total activity availability, and break this into activity usage and unused activity. Activity availability: fill in the blank 3 purchase orders Activity usage: fill in the blank…
Vin Diesel owns the Fredonia Barber Shop. He employs four barbers and pays each a base rate of $1,250 per month. One of the barbers serves as the manager and receives an extra $500 per month. In addition to the base rate, each barber also receives a commission of $4.50 per haircut.Other costs are as follows.Advertising $200permonth Rent $1,100permonth Barber supplies $0.30 per haircut Utilities $175 per month plus $0.20 per haircut Magazines $25 per monthVin currently charges $10 per haircut.Instructions(a) Determine the variable costs per haircut and the total monthly fixed costs. (b) Compute the break-even point in units and dollars. (c) Prepare a CVP graph, assuming a maximum of 1,800 haircuts in a month. Use incre-ments of 300 haircuts on the horizontal axis and $3,000 on the vertical axis. (d) Determine net income, assuming 1,600 haircuts are given in a month.
Matthew Diesel owns the Fredonia Barber Shop. He employs 6 barbers and pays each a base salary of $1,490 per month. One of the barbers serves as the manager and receives an extra $600 per month. In addition to the base salary, each barber also receives a commission of $10.40 per haircut. Other costs are as follows. Advertising $ 220 per month Rent $950 per month Barber supplies $0.50 per haircut Utilities $195 per month plus $0.10 per haircut Magazines $30 per month Matthew currently charges $20.00 per haircut.mpute the break-even point in sales units and in sales dollars. Break - even point haircuts Break-even point sales Break-even point Compute the break-even point in sales units and in sales dollars. Break-even point sales $ 3 Tauthooke sød Madis c haircuts