Please answer fast Janice opened a franchise short of KrispyKreme Doughnuts in her hometown. Shehas been working really hard but thebusiness doesn't seems to have taken offlike thought it would so she is consideringclosing up shop and trying something new.She excepts to earn $5,000 over the nextsix months (when her lease runs out). Therent for the next six months is $6,000 andshe committed to paying rent of $4,000 onher production machinery until the end ofthe year. If she decides to keep the shopopen she will need to pay for bakingsupplies and labor, equaling another$4,000. Using what you know aboutshutdown points, should Janice stick it outuntil the end of the year? What is sheexpects to earn $20,000 over the next sixmonths? What is she expects to earn$2,000?

Here we will look at the relevant costs. In finance relevant costs are those costs that will change…

Janice opened a franchise short of Krispy Kreme Doughnuts in her hometown. She has been working really hard but the business doesn't seems to have taken off like thought it would so she is considering closina up shop and trving something new.

Janice opened a franchise short of Krispy Kreme Doughnuts in her hometown. She has been working really hard but the business doesn't seems to have taken off like thought it would so she is considering closina up shop and trving something new.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter9: Responsibility Accounting And Decentralization

Section: Chapter Questions

Problem 15Q: Lavell started out mowing lawns in the neighborhood when he was 13 years old. He did such good work...

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Lavell started out mowing lawns in the neighborhood when he was 13 years old. He did such good work that, without advertising, his business grew steadily each year. After college, Lavell decided to continue the business as a full-time career. One of his concerns, however, is the number of hours he is putting in. Once school lets out, he finds himself working long hours nearly every day of the week. Although he has added workers, his business now handles mowing, trimming, and landscaping for residential, corporate, and nonprofit clients. He is considering adding managers but is no quite sure how to structure the organization. Lavell wants to focus on building the business rather than doing the daily work, so he knows a decentralized structure will be best. He has asked you to develop a potential organizational chart to help him envision the best way to organize the business. Describe the advantages to this approach as well as any concerns he should have.
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