AI Khoud Training Center (KTC) is an industrial training company operating in Muscat Knowledge Oasis. Following increased competition and customer expectations, KTC has been forced to revisit its operational strategy and its quality standards. The following budgeted data for 2022 are available: Number of Trainees 6,000 Operating Income OMR45,000 Budgeted Variable Cost per Trainee Trainee's Support Service Training Materials Foods Miscellaneous Products & Services OMR26 Facilities OMR12 Salaries OMR22 OMR15 Budgeted Fixed Cost per Training 16,000 5,000 Based on the customer survey it conducted, KTC has leamed that several improvements to its products and services are required. The improvements would provide the following impacts: Increase in the Number of Trainees Increase in the Total Variable Costs Increase in the Total Fixed Costs 70% 65% 50% You are required to: 0 Calculate the budgeted revenue per trainee based on the available data.
AI Khoud Training Center (KTC) is an industrial training company operating in Muscat Knowledge Oasis. Following increased competition and customer expectations, KTC has been forced to revisit its operational strategy and its quality standards. The following budgeted data for 2022 are available: Number of Trainees 6,000 Operating Income OMR45,000 Budgeted Variable Cost per Trainee Trainee's Support Service Training Materials Foods Miscellaneous Products & Services OMR26 Facilities OMR12 Salaries OMR22 OMR15 Budgeted Fixed Cost per Training 16,000 5,000 Based on the customer survey it conducted, KTC has leamed that several improvements to its products and services are required. The improvements would provide the following impacts: Increase in the Number of Trainees Increase in the Total Variable Costs Increase in the Total Fixed Costs 70% 65% 50% You are required to: 0 Calculate the budgeted revenue per trainee based on the available data.
Cornerstones of Cost Management (Cornerstones Series)
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Author:Don R. Hansen, Maryanne M. Mowen
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Chapter16: Cost-volume-profit Analysis
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Problem 37P: Katayama Company produces a variety of products. One division makes neoprene wetsuits. The divisions...
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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Transcribed Image Text:Al Khoud Training Center (KTC) is an industrial training company operating in Muscat Knowledge Oasis. Following
increased competition and customer expectations, KTC has been forced to revisit its operational strategy and its
quality standards. The following budgeted data for 2022 are available:
Number of Trainees
6,000 Operating Income
OMR45,000
Budgeted Variable Cost per Trainee
Trainee's Support Service
Training Materials
Foods
Miscellaneous Products & Services OMR15
Budgeted Fixed Cost per Training
16,000
5,000
OMR26 Facilities
OMR12 Salaries
OMR22
Based on the customer survey it conducted, KTC has learned that several improvements to its products and
services are required. The improvements would provide the following impacts:
Increase in the Number of Trainees
Increase in the Total Variable Costs
Increase in the Total Fixed Costs
70%
65%
50%
You are required to:
(0)
Calculate the budgeted revenue per trainee based on the available data.
(i)
Assuming that budgeted revenue per trainee remains unchanged, explain (with numerical
justifications) whether KCT should implement the suggested improvements.
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