Wheels N Cogs is a small business that designs gear for a variety clients including those that produce lawnmower equipment According to the financial profie, the company spends $960k each on rent and utites. One of the reasons why the company is so successful is that it can produce gear at a relatively low price ($1.72/gear) and can sell them for $9.34. Based on the information conceming this company, how many gears would Wheels N Cogs need to produce for them to break even? Oa 50,000 per year Ob 125,000 per year Oc 100,000 per year 1975.000 per year
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- Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, MT. For its services, the company has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $28.00 per hundred square feet. A cost of $21.50 per square foot was computed by taking $430,000/20,000 hundred square feet = $21.50 per hundred square feet. However, there is some question about whether the company is actually making any money on jobs for some customers—particularly those located on remote ranches that require considerable travel time. The owner’s daughter, home for the summer from college, has suggested investigation this question using activity-based costing. After some discussion, a simple system consisting of four activity cost pools seems to be adequate. The activity cost pools, and their activity measures appear below. Activity cost pool Activity Measure Activity for the year Cleaning carpets Square feet cleaned 2,000,000…Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, MT. For its services, the company has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $28.00 per hundred square feet. A cost of $21.50 per square foot was computed by taking $430,000/20,000 hundred square feet = $21.50 per hundred square feet. However, there is some question about whether the company is actually making any money on jobs for some customers—particularly those located on remote ranches that require considerable travel time. The owner’s daughter, home for the summer from college, has suggested investigation this question using activity-based costing. After some discussion, a simple system consisting of four activity cost pools seems to be adequate. The activity cost pools, and their activity measures appear below. Activity cost pool Activity Measure Activity for the year Cleaning carpets Square feet cleaned 2,000,000…Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, MT. For its services, the company has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $28.00 per hundred square feet. A cost of $21.50 per square foot was computed by taking $430,000/20,000 hundred square feet = $21.50 per hundred square feet. However, there is some question about whether the company is actually making any money on jobs for some customers—particularly those located on remote ranches that require considerable travel time. The owner’s daughter, home for the summer from college, has suggested investigation this question using activity-based costing. After some discussion, a simple system consisting of four activity cost pools seems to be adequate. The activity cost pools, and their activity measures appear below. Activity cost pool Activity Measure Activity for the year Cleaning carpets Square feet cleaned 2,000,000…
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- Davidson Yachts is a small company founded by two businesspeople who are friends and avid sailors. At present, they are interested in expanding the business and have asked you to review its financial statements. Davidson Yachts sells approximately 130 to 180 sailboats each year, ranging from 15-foot dinghies to 21-foot sailboats. Their sales prices range from $2,300 to more than $10,300. The company has a limited inventory of boats consisting primarily of one or two boats from each of the four manufacturers that supply Davidson. The company also sells a variety of supplies and parts and performs different types of service. Most sales are on credit. The company operates from a large building that has offices, storage, and sales space for some of the smaller sailboats. The larger sailboats are kept in a fenced area adjacent to the main building, and an ample parking area is nearby. This year, Davidson purchased a boat lift to haul boats. The lift has brought in revenues for boat…Klee Motors is a small car dealership. On average, it sells a car for $24 000, which it purchases from the manufacturer for $20 000. Each month, Klee Motors pays $60 000in rent and utilities and $60 000 in salespeople’s salaries. In addition to their salaries, sales people are paid a commission of $500 for each car they sell. Klee Motors also spends $15 000 each month on local advertisements. a. How many cars must Klee Motors sell each month to break even? b. Will Klee Motors earns a profit if it can sell 6 cars? c. How much sales revenue shall the company earn to achieve a $100,000 profit?Classical Glasses operates a kiosk at the local mall, selling s unglasses for $30 each. Classical Glasses currently pays $1,000 a month to rent the space and pays two full-time employees to each work 160 hours a month at $10 per hour. The store shares a manager with a neighboring kiosk and pays 50% of the manager’s annual salary of $60,000 and benefits of $12,000. The wholesale cost of the sunglasses to the company is $10 a pair. Q.If the store’s hourly employees agreed to a 15% sales-commission-only pay structure, instead of their hourly pay, how many sunglasses would Classical Glasses need to sell to earn an operating income of $5,300?