A monthly income statement for a small consulting company is shown below. From these data calculate the following: a. Labor Utilization Rate b. Break Even Multiplier c. Effective Labor Multiplier. REVENUE $372,000| Sales 372,000 COSTS $276,000 Direct Costs $120,000| Salaries 120,000 Indirect Costs $156,000 Salaries 73,500 Benefits 54,190 Rent 5,000 Utilities 1,950 3,210 5,970 Professional Development Depreciation Supplies Used 1,820 Interest 1,760 Other 8,600 NET INCOME (PROFIT) $96,000
A monthly income statement for a small consulting company is shown below. From these data calculate the following: a. Labor Utilization Rate b. Break Even Multiplier c. Effective Labor Multiplier. REVENUE $372,000| Sales 372,000 COSTS $276,000 Direct Costs $120,000| Salaries 120,000 Indirect Costs $156,000 Salaries 73,500 Benefits 54,190 Rent 5,000 Utilities 1,950 3,210 5,970 Professional Development Depreciation Supplies Used 1,820 Interest 1,760 Other 8,600 NET INCOME (PROFIT) $96,000
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter2: Basic Managerial Accounting Concepts
Section: Chapter Questions
Problem 39E: Cost Classification Loring Company incurred the following costs last year: Required: 1. Classify...
Related questions
Question
Please help me
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Essentials of Business Analytics (MindTap Course …
Statistics
ISBN:
9781305627734
Author:
Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Publisher:
Cengage Learning