Samantha and Rashida are planning a trip to Padre Island, Texas, during spring break. Members of the varsity volleyball team, they are looking forward to four days of beach volleyball and parasailing. They will drive Samantha's car and estimate that they will pay the following costs during the trip: Motel (4 nights at $160) Food (each) Gas in total Parasailing and equipment rental (each) They have reservations at the Seascape Motel, which charges $135 per night for a single, $160 per night for a double, and an additional $15 per night if a rollaway bed is added to a double room. Samantha's little sister, Kallie, wants to go along. She isn't into sports but thinks that four days of partying and relaxing on the beach would be a great way to unwind from the rigors of school. She figures that she could ride with Samantha and Rashida and share their room. $640 155 123 120 Required: 1. Using incremental costs only, what would it cost Kallie to accompany Samantha and Rashida? $ 335 X 2. Using the benefits-received method, what would it cost Kallie to go on the trip? If required, round your intermediate calculations and final answer to the nearest cent. 572 X $

Samantha and Rashida are planning a trip to Padre Island, Texas, during spring break. Members of the varsity volleyball team, they are looking forward to four days of beach volleyball and parasailing. They will drive Samantha's car and estimate that they will pay the following costs during the trip: Motel (4 nights at $160) Food (each) Gas in total Parasailing and equipment rental (each) They have reservations at the Seascape Motel, which charges $135 per night for a single, $160 per night for a double, and an additional $15 per night if a rollaway bed is added to a double room. Samantha's little sister, Kallie, wants to go along. She isn't into sports but thinks that four days of partying and relaxing on the beach would be a great way to unwind from the rigors of school. She figures that she could ride with Samantha and Rashida and share their room. $640 155 123 120 Required: 1. Using incremental costs only, what would it cost Kallie to accompany Samantha and Rashida? $ 335 X 2. Using the benefits-received method, what would it cost Kallie to go on the trip? If required, round your intermediate calculations and final answer to the nearest cent. 572 X $

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 16E

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Samantha and Rashida are planning a trip to Padre Island, Texas, during spring break. Mem-bers of the varsity volleyball team, they are looking forward to four days of beach volleyball and parasailing. They will drive Samantha’s car and estimate that they will pay the followingcosts during the trip: Motel (4 nights at $145) $580Food (each) 150Gas in total 120Parasailing and equipment rental (each) 125 They have reservations at the SeaScape Motel, which charges $120 per night for a single, $145per night for a double, and an additional $15 per night if a rollaway bed is added to a doubleroom.Samantha’s little sister, Kallie, wants to go along. She isn’t into sports but thinks that fourdays of partying and relaxing on the beach would be a great way to unwind from the rigors ofschool. She figures that she could ride with Samantha and Rashida and share their room.Required:1. Using incremental costs only, what would it cost Kallie to accompany Samantha andRashida?2. Using the…
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Hannah Byers and Kathleen Taylor are considering the possibility of teaching swimming to kids during the summer. A local swim club opens its pool at noon each day, so it is available to rent during the morning. The cost of renting the pool during the10-week period for which Hannah and Kathleen would need it is $1,700. The pool would also charge Hannah and Kathleen an admission, towel service, and life guarding fee of $7 per pupil, and Hannah and Kathleen estimate an additional $5 cost per student to hire several assistants. Hannah and Kathleen plan to charge $75 per student for the 10-week swimming class. a. How many pupils do Hannah and Kathleen need to enroll in their class to break even? b. If Hannah and Kathleen want to make a profit of $5,000 for the summer, how many pupils do they need to enroll? c. Hannah and Kathleen estimate that they might not be able to enroll more than 60 pupils. If they enroll this many pupils, how much would they need to charge per pupil in order to…
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