1.) "Revenue hours" represent the key activity that drives costs at Salem Data Services. Which expenses in Exhibit 2 are variable with respect to revenue hours? Which expenses are fixed with respect to revenue hours?
Variable: Wages of hourly personnel, Power
Fixed: Rent, custodial services, computer leases, maintenance, depreciation, salaried staff wages, administration, sales, systems development, sales promotion, corporate services
2.) For each expense that is variable with respect to revenue hours, calculate the cost per revenue hour.
a. Wages of hourly personnel
Total wages of hourly personnel/total revenue hours = cost per revenue hour
i. January: 7896/329 = $24 per revenue hour ii. Februrary: 7584/316 = $24 per
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Increased promotion would increase revenue hours by up to 30%. Wu is unsure how much promotion this would take. (How much could be spent and still leave Salem Data Services with no reported loss each month if commercial hours were increased by 30%).
January February March
Sales $ 235,040 $ 234,520 $ 259,480
Total Variable Costs $ 10,501 $ 10,232 $ 11,549
Contribution Margin $ 224,539 $ 224,288 $ 247,931
Total Fixed Costs $ 212,939 $ 212,939 $ 212,939
Net Operating Income $ 11,600 $ 11,349 $ 34,992
January
Intercompany Sales =
Commercial Sales =
Variable Expenses =
Contribution Margin =
New Operating Income =
February
Intercompany Sales =
After analyzing past customer preferences, in 2010 store 88 initiated a promotion to increase mid-week sales to even out demand. In the past approximately 80% of services were incurred on Friday, Saturday and Monday, compared to 20% incurred on Tuesday, Wednesday and Thursday. To even out the demand for services, the store initiated a program to decrease the service price to $18 on Tuesdays, Wednesdays, and Thursdays and increase the price to $30 on Fridays, Saturdays, and Mondays. Through careful scheduling of staff, budgeted labor time was also decreased from 2,500 hours to 2,250 hours per employee.
1- The total unit cost = Total Variable Cost + Production Fixed Expenses + Advertising Expense + Selling and Administrative Expense = 3.23 + 1.20 + 0.30 + 0.19 = 4.92.
Irrelevant Costs, Insurance (General Liability, Physical Damage, Workers Compensation, Health insurance), Security, Depreciation, Salaries Benefits, Bad Debt Expense, Permits, Rental Equipment, Payroll Taxes, Accounting Fees, Supplies, Computer Maintenance, Miscellaneous.
Ms. Forsythe's employer installed a telephone in her car so he could always reach her; but, she rarely answers the ring.
Have you ever been wrongly accused of something and get in trouble for it? Have you ever wrongly accused somebody because you were mad at them? This is what occurred in Salem Village, Massachusetts during 1692. These erroneous accusations, according to Document A, led to the hanging of 19 people, and the crushing of another. But what caused the accusations? According to An Unsolved Crime: The Salem Witch Trials, the hardships the villagers endured, teenage boredom, and the Puritans strict religion were the causes of the Salem Witch Trial Hysteria. .
Revenues and Direct Costs are as follows: $16,000,000 in total revenues, $9,833,155 in direct expenses, $6,166,845 in contribution margin, and 38.5% in percent of revenues. Their indirect costs are as follows: $1,200,000 in facilities costs, $1,600,000 in general overhead, and $2,800,000 in total overhead. This leaves the OP
Calculate the variable costs per order received at a trade show and the variable costs per order received through a sales rep.
Question 3: Identify all costs associated with this venture. Categorize these costs as fixed or variable.
Beginning with advertising, promotional, and selling expenses, these have totaled to be $250,696, $273,629, and $244,213 in 2014, 2015, and 2016, in thousands respectively. There are many components included within this genre of expenses. The fixed costs would encompass media advertising, sales and marketing expenses, as well as salary and benefit expenses. When it comes to directly categorizing advertising, knowing which stage the company is in regards to budgeting or accruing the expense throughout the year depends on whether it is fixed or variable. Having a
The Salem Witch Trials was one of the most out of the box things back in 1692 Massachusetts, but it still seems to be quite unexplainable and at times shady. More than 200 people were accused of practicing the devil’s magic, but only about 20 were executed. Though people were killed, the colonists eventually admitted that the Salem Witch Trials were actually a mistake for which they later compensated the families that were convicted. I picked the Salem Witch Trials to type about because I would like to completely understand all of the viewpoints surrounding the hysteria of what is known to be the Salem Witch Trials. I have heard many odd details about this and I’d like to clarify my questions about what is true and what isn’t. Salem Witch
3. For each of the individual overhead accounts at Bridgeton, do you believe the given cost is variable, fixed, or something else? Why? (Use information or evidence from the case to support your evaluation, if possible. For most of these costs, there is no single right answer from the case information, so the goal is to come up with a reasonable estimate.)
It is with great pride and enthusiasm that I am writing this letter of recommendation for Esraa Fathy Salem. I have taught Esraa for as long as she has attended Alexandria Faculty of Dentistry. As a professor of many years, I have come across very few students that have had the drive of excelling in the field of dentistry. Graduating at the top of her class and excelling where many have failed has left me to anticipate great things for Esraa in the future. Not only has Esraa shined academically but she has shown great compassion, appreciation, and care for her fellow colleagues and patients. Esraa has expressed interest in orthodontics and I am confident that she will not only achieve her goal but she will surpass
Salem Data Services was established after an agreement was reached between Salem Telephone Company and the state Public Service Commission. Salem Data Service is a computer data service, which performs data processing for Salem Telephone Company. They also sell computer services to other companies and organizations. Since Salem Telephone company was a regulated utility it drove the need for Salem Data Services to be a separate entity since it was an unregulated utility. Even though Salem Data Services had its pros the separate entity was a drain on Salem Telephone Company since it had not produced a profit from 2001 to the current year during the case study of 2004.
Digging deeper, the first number we examine is how many computer hours PDS has to sell to break even. We will assume the intercompany hours billed at $400 will average 205 per month. The variable costs include power, parts of operation wages, and materials. Next, we calculate the unit contribution (sales – variable cost). The average cost for power is the total 3-month power cost divided by the total time computers were used during this time (total revenue plus service hours) or 5028/1110 = $4.53. Operations cost
Selling and administrative expenses: Selling expenses: Direct advertising General advertising* Sales salaries Delivery salaries Store rent Depreciation of store fixtures Depreciation of delivery