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lbvjy [14]
3 years ago
14

You run a school in Florida. Fixed monthly cost is $5,435.00 for rent and utilities, $6,171.00 is spent in salaries and $1,545.0

0 in insurance. Also every student adds up to $91.00 per month in stationary, food etc. You charge $734.00 per month from every student now. You are considering moving the school to another neighborhood where the rent and utilities will increase to $11,679.00, salaries to $6,974.00 and insurance to $2,408.00 per month. Variable cost per student will increase up to $158.00 per month. However you can charge $1,054.00 per student. At what point will you be indifferent between your current mode of operation and the new option?
Business
1 answer:
umka21 [38]3 years ago
5 0

Answer:

31

Explanation:

The calculation of indifferent between your current mode of operation and the new option is shown below:-

Current Operation

Contribution Margin = Monthly Fees - Variable Cost

= $734.00 - $91.00

= $643.00

Total Fixed Cost = Rent and Utilities + Salaries + Insurance

= $5,435.00 + $6,171.00 + $1,545.00

= $13,151.00

New Operation

Contribution Margin = Monthly Fees - Variable Cost

= $1,054.00 - $158.00

= $896.00

Total Fixed Cost = Rent and Utilities + Salaries + Insurance

= $11,679.00 + $6,974.00 + $2,408.00

= $21,061.00

Here we will assume the indifferent number of students will be X

So,

Income under current option = Income under new option

$643.00 × X - $13,151.00 = $896.00 × X - $21,061.00

$253X = $7,910

X = $7,910 ÷ $253

= 31.26

or

= 31

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Jenny gets a sticker every time she brings her homework; this type of reinforcement schedule is known as ________ reinforcement.
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On May 31, Money Corporation's Cash account showed a balance of $16,000 before the bank reconciliation was prepared. After exami
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Answer:

cash balance tobe reported in the balance sheet 16,880

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3 years ago
Sunspot Beverages, Ltd., of Fiji makes blended tropical fruit drinks in two stages. Fruit juices are extracted from fresh fruits
True [87]

The total cost of ending work in process inventory is $87,500 and the total cost of units transferred to the Bottling Department $536,000.

What is weighted average ?

The weighted normal calculation accounts for the various levels of statistical significance among the data points in either a data collection. Each value in this data collection is multiplied by a predetermined weight before the final calculation to produce a weighted normal.

A weighted normal, which gives each figure in a data collection equal weights, can be more accurate than a plain normal.

When calculating a simple normal, also known as the computation mean, all numbers are given equal weight and are scored in reverse, A weighted average's allotted weights,

Here, Equivalent unit of production = 40,000,   conversion = 10,000

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Thus,

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Total cost = $87,500

and, units transferred to the next department = 160,000,   conversion = 160,000

Cost per equivalent unit = $1.80,   conversion = $1.56

Thus,

Cost of units completed and transferred out = $288,000,   conversion = $248,000

Total cost = $536,000

So, The total cost of ending work in process inventory is $87,500 and the total cost of units transferred to the Bottling Department $536,000.

Learn more about weighted average method here:

brainly.com/question/14932623

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Why is it in the best interest of the government to regulate natural monopolies?
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To keep costs to a minimum for consumers <span>is it in the best interest of the government to regulate natural monopolies 
hope it helps</span>
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Read 2 more answers
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