Lucy Treasures operates a chain of gift shops. The company…
Lucy Treasures operates a chain of gift shops. The company pays liability insurance premiums of $2,500 per year for each shop. The managers of each shop are paid a salary of $1,200 per month and all other employees are paid on an hourly basis. Relative to the number of shops, the costs of insurance is which kind of cost?
Read DetailsThis question is worth a total of 10 points. Misty Raines op…
This question is worth a total of 10 points. Misty Raines operates Misty’s Dance Academy. Lessons are scheduled daily Monday through Friday for 50 weeks per year. Lessons are one hour in length. The following information is provided: Fixed costs* $90.00 per day Instructor wages $16.00 per hour Other variable costs $ 2.00 per hour *Annual fixed costs of $22,500 divided by 250 days (50 weeks x 5 days per week) Required: (NOTICE THAT THERE ARE TWO (2) QUESTIONS TO ANSWER!) 1) Compute the total cost and the cost per lesson if the following number of lessons are provided on a given day: NUMBER OF LESSONS 1 2 4 8 Fixed Costs $_____ $_____ $______ $_____ Instructor Wages _____ _____ ______ _____ Other variable Costs _____ _____ ______ ______ __________________________________________________________________________ Total Costs $ $ $ $ Cost per lesson $ $ $ $ 2). Based on the behavior of the cost per lesson, this is which type of cost: Fixed or variable? Why?
Read DetailsWhat is the effect on the financial statement model of recor…
What is the effect on the financial statement model of recording a $100 cash purchase of raw materials? Assets = Liabilities + Equity Revenues – Expenses = Net Income Cash Flow A. (100) N/A (100) N/A – 100 (100) N/A B. 100 N/A 100 N/A – 100 (100) (100) C. N/A N/A N/A N/A N/A N/A (100) D. N/A N/A N/A N/A – 100 (100) N/A
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