You plan on starting a lawn mowing business by investing $700 of your own money and purchasing $500 of equipment. You plan to work 390 hours. per month and charge your customers $18 per hour. Your anticipated costs include: Advertising $39 per month Gas $1.60 per hour Depreciation $25 per month Assistant's Wages $7.00 per hour Miscellaneous Expenses $60 per month Calculate your budgeted Total fixed cost

You plan on starting a lawn mowing business by investing $700 of your own money and purchasing $500 of equipment. You plan to work 390 hours. per month and charge your customers $18 per hour. Your anticipated costs include: Advertising $39 per month Gas $1.60 per hour Depreciation $25 per month Assistant's Wages $7.00 per hour Miscellaneous Expenses $60 per month Calculate your budgeted Total fixed cost

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 5CE: Jean and Tom Perritz own and manage Happy Home Helpers, Inc. (HHH), a house-cleaning service. Each...

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You plan on starting a lawn mowing business by investing $700 of your own money and purchasing $500 of equipment. You plan to work 280 hours per month and charge your customers $17 per hour. Your anticipated costs include: Advertising $20 per month Gas $1.60 per hour Depreciation $25 per month Assistant's Wages $10.00 per hour Miscellaneous Expenses $60 per month Calculate your budgeted Sales Revenue for the month.
esc You plan on starting a lawn mowing business by investing $700 of your own money and purchasing $500 of equipment. You plan to work 80 hours in your first month and 370 hours in your second month of business. You charge your customers $24 per hour. Your anticipated costs include: Advertising Gas Depreciation Assistant's Wages Miscellaneous Expenses You plan on collecting 90% of your sales in the month you mow the lawn and the remainder in the following month. Calculate the accounts receivable balance at the end of your second month of business. Click Save and Submit to save and submit. Click Save All Answers to save all answers. 1 Q A 2 W $8 per month $1.40 per hour $25 per month $8.00 per hour $40 per month S # 3 E D $ 4 R 67 dº % 5 LL MacBook Pro T < 6 G & Y 7 H * 00 8 U J o
You plan on starting a lawn mowing business by investing $700 of your own money and purchase $500 of equipment. You plan to work 260 hours per month and charge your customers $23 per hour. Your anticipated costs include: $25.00 per month $26.00 per month $1.40 per hour Assistant's Wages $9.00 per hour Miscellaneous Expenses $40.00 per month Calculate your Variable cost per hour on the budgeted contribution margin income statement. Depreciation Advertising Gas
You have a lawn mowing business. You plan to work 300 hours per month and charge your customers $23 per hour. Your anticipated costs include: Advertising $30 per month Gas $1.20 per hour $25 per month $9.00 per hour $20 per month Depreciation on mowers Assistant's Wages Miscellaneous Expenses You plan on paying 60% of your monthly costs in the month incurred, 30% in the second month and the remainder in the following month. Calculate the amount of cash payments for operating activities in your second month of business.
You have a lawn mowing business. You plan to work 250 hours per month and charge your customers $22 per hour. Your anticipated costs include: Advertising $25 per month Gas $1.50 per hour Depreciation on mowers $25 per month Assistant's Wages $7.00 per hour Miscellaneous Expenses $50 per month You plan on paying 60% of your monthly costs in the month incurred, 30% in the second month and the remainder in the following month. Calculate the amount of cash payments for operating activities in your second month of business.
SC You have a lawn mowing business. You plan to work 250 hours per month and charge your customers $24 per hour. Your anticipated costs include: Advertising $25 per month Gas $1.30 per hour $25 per month $8.00 per hour $30 per month Depreciation on mowers Assistant's Wages Miscellaneous Expenses You plan on paying 60% of your monthly costs in the month incurred, 30% in the second month and the remainder in the following month. Calculate the amount of cash payments for operating activities in your second month of business. Click Save and Submit to save and submit. Click Save All Answers to save all answers. ! 1 Q IL A 2 W S # 3 E D $ 4 R % 5 F MacBook Pro T 6 G & Y 7 H * 00 8 U 9 T K J
You plan on starting a lawn mowing business by investing $700 of your own money and purchase $500 of equipment. You plan to work 330 hours per month and charge your customers $18 per hour. Your anticipated costs include: Advertising Gas $18.00 per month Depreciation $1.40 per hour $33.00 per month $10.00 per hour Assistant's Wages Miscellaneous Expenses $40.00 per month Calculate the Equipment net of Accumulated Depreciation at the end of your second month of business on the budgeted balance sheet. +
Phoenix Management helps rental property owners find renters and charges the owners one-half of the first month's rent for this service. For August 2022, Phoenix expects to find renters for 100 apartments with an average first month's rent of $1,020. Budgeted cost data per tenant application for 2022 follow: ⚫ Professional labor: 1.5 hours at $20.00 per hour ⚫ Credit checks: $66.00 Phoenix expects other costs, including the lease payment for the building, secretarial help, and utilities, to be $4,600 per month. On average, Phoenix is successful in placing one tenant for every three applicants. Actual rental applications in August 2022 were 270. Phoenix paid $8,400 for 380 hours of professional labor. Credit checks went up to $71 per application. Other costs in August 2022 (lease, secretarial help, and utilities) were $5,200. The average first monthly rentals for August 2022 were $1,120 per apartment unit for 90 units. Required: 1. (a) What is the master budget variance for August 2022?…
You are going to open a business making custom cabinets. You can selleach cabinet for $80. It takes a cabinetmaker approximately 45 minutes tomake one cabinet. Each cabinetmaker works an 8-hour day earning $18 perhour. Each cabinet uses $25 in raw materials. You usually produce cabinets20 days a month and can employ two cabinetmakers. You estimate thatyour fixed costs are $5,000 per month.a. What is your contribution margin?b. How many cabinets must you make each month to break even?c. What is your total monthly revenue if you want to earn a $2,000 profit?d. Construct a break-even chart for the custom cabinet firm. Part D is neeeded
You are going to open a business making custom cabinets. You can selleach cabinet for $80. It takes a cabinetmaker approximately 45 minutes tomake one cabinet. Each cabinetmaker works an 8-hour day earning $18 perhour. Each cabinet uses $25 in raw materials. You usually produce cabinets20 days a month and can employ two cabinetmakers. You estimate thatyour fixed costs are $5,000 per month.a. What is your contribution margin?b. How many cabinets must you make each month to break even?c. What is your total monthly revenue if you want to earn a $2,000 profit?d. Construct a break-even chart for the custom cabinet firm.
Below are data for Rent a Wash for next year. Car Detailers' 54,000,000 Wages Fringe Benefit 2,700,000 Overhead 2,000,000 Rent a Wash desires a profit margin 50% per labor hour. The material loading charge is 25% of invoice cost. Rent a Wash estimates that 10,000 labor hours will be worked next year. If Rent a Wash takes 5 hours for car detailing and uses special soap costing Rp75,000 what is the bill for the job?
You are the manager of an apartment complex with 100 units. When you set the rent at $1600 per month, all apartments are rented. As you increase rent by $50 per month, on average, 2 fewer apartments are rented. Maintenance costs run $200 per month for each occupied unit. What is the rent that maximizes the total amount of profit? Answer: