1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Yanka [14]
3 years ago
10

Ben Palman owns an art gallery. He accepts paintings and sculpture on consignment and then receives 20% of the price of each pie

ce as his fee. Space is limited, and there are costs involved, so Ben is careful about accepting artists. When he does accept one, he arranges for an opening show (usually for 3 hours on a weekend night) and sends out invitations to his customer list. At the opening, he serves wine, soft drinks, and appetizers to create a comfortable environment for prospective customers to view the new works and to chat with the artist. On average, each opening costs $500. Ben has given as many as 20 opening shows in a year. The total cost of running the gallery, including rent, furniture and fixtures, utilities, and a part-time assistant, amounts to $80,000 per year.
Required:
1. Assume that the cost driver is number of opening shows. Develop the cost formula for the gallery's costs for a year.
2. Using the cost formula developed above, what is the total cost for Ben in a year with 12 opening shows?
Business
1 answer:
Elan Coil [88]3 years ago
3 0

Answer:

1. The cost formula for the gallery's costs for a year would be Total cost=$80,000+$500X

2. The total cost for Ben in a year with 12 opening shows Using the cost formula developed is $86,000

Explanation:

1. According to the given data the cost formula for the gallery's costs for a year would be as follows:

Total cost=Fixed costs+Variable costs for the level of activity

Total cost=$80,000+$500*number of opening shows

Total cost=$80,000+$500X

2. The total cost for Ben in a year with 12 opening shows Using the cost formula developed above would be as follows:

Total cost=$80,000+$500X

Total cost=$80,000+$500*12

Total cost=$80,000+$6,000

Total cost=$86,000

You might be interested in
If you want to give a vendor an incentive to complete work early, which type of contract would you use?Select an answer:a. fixed
uranmaximum [27]

Answer:

The correct answer is letter "A": fixed price.

Explanation:

A fixed price incentive is a type of price that is set based on a reward that will be given only in the case the good or service traded results to be better than expected. It is normally applied when the good or service is delivered to the consumer before so the consumer has the product for extra time with no additional cost.

8 0
3 years ago
Read 2 more answers
An activity-based costing system that is designed for internal decision-making will not conform to generally accepted accounting
Tresset [83]

Answer:

under activity-based costing the sum of all product costs does not equal the total costs of the company.

Explanation:

The method of an activity-based costing system can be used use to find the total cost of all the activities that are required to make a product. This system also helps to find out which overhead costs can be avoided.

An activity-based costing system that is designed for internal decision-making will not conform to generally accepted accounting principles because under activity-based costing the sum of all product costs does not equal the total costs of the company.

8 0
3 years ago
Hayden, a buyer for a medium-sized company, is assessing the value of competing software products for use in his firm. Which of
sveta [45]

Answer: A. Speech of delivery

Explanation:

When buying things like software, there are certain things that will determine the value apart from the monetary price. These include the ease of installation and the availability of training assistance.

With ease of installation, the fundamental question is if the software is easy or complicated to install. The easier it is the better. Also is there someone who can help the users be able to master the features of the software. This is availability of training assistance.

Now while speech of delivery can help in convincing Hayden to buy from a particular shop, it does not contribute to the value of the software.

6 0
3 years ago
Discuss which financial management practices are least effective in creating and monitoring an operating budget.
Vinil7 [7]

Top down/bottom up budgets, lack of control, poor inventorying, lack of staff investment, over control are the least effective financial management practices in creating and monitoring an operating budget.

The operating budget includes the expenditures and revenues generated by the company's daily business functions. The operating budget focuses on operating expenses, such as the cost of goods sold in the market, also known as the cost of sold goods (COGS), and revenue or income. COGS is the cost of direct labor and direct materials used in the production process.

The operating budget also includes overhead and administration costs that are directly related to manufacturing goods and providing services. However, capital expenditures and long-term loans will not be included in the operating budget. Budgets for sales, production process or manufacturing, labor, overhead, and administration are a few examples of frequently utilized operating budgets.

Learn more about operating budget here:

brainly.com/question/14346551

#SPJ4

6 0
2 years ago
When stimulated by _____, arterioles supplying the digestive system ______, which decreases blood flow to digestive organs.
denis-greek [22]

When stimulated by sympathetic nervous, arterioles supplying the digestive system constrict, which decreases blood flow to digestive organs.

The respiration machine works immediately with the circulatory machine to offer oxygen to the body. Oxygen taken in from the respiration machine movements into blood vessels that then circulate oxygen-wealthy blood to tissues and cells. These consist of arteries consisting of the femoral and coronary arteries. The partitions of those arteries have masses of easy muscle, this means that that they may be capable of settlement or relax (dilate) to extrude the quantity of blood delivered, as needed.

Learn more about supplying here:

brainly.com/question/25646504

#SPJ4

6 0
1 year ago
Other questions:
  • All of the following represent cash outflows to the firm excepta. Taxes.b. Interest payments.c. Dividends.d. Purchase of plant a
    11·1 answer
  • What kind of leadership style would be best to employ if quick decisions are needed on a team?
    14·1 answer
  • In the country of Normian Republic, an individual's right to own land is restricted to a large extent on the basis that it runs
    10·1 answer
  • Rita earns $10 per hour. She puts 5% of her earnings in savings. Write an inequality to find how many hours h Rita must work to
    8·2 answers
  • At www.daveramsey’s Financial Peace University (FPU), Dave recommends Seven Baby Steps. One of these steps is “Pay off debt usin
    15·1 answer
  • The Weidmans want to save $20,000 in 4 years for a down payment on a house. If they make monthly deposits in an account paying 1
    15·1 answer
  • Jacob Engineering Group views and organizes its marketing activities from the viewpoint of its buyers. Management works hard to
    9·1 answer
  • If the amount of factory overhead cost incurred exceeds the amount applied, the factory overhead account will have a:______
    6·1 answer
  • Determine if each of the following plans are short term, long term, or operational
    8·1 answer
  • Why do we record Direct deposits into the CPJ
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!