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1.
Construct the graph that explains the relationship between the cost of giving opening hours and the number of opening shows given. Also, identify this type of cost as a variable cost, a fixed cost, or mixed cost.
2.
Construct the graph that explains the relationship between the cost of running the gallery and the number of opening shows given. Also, identify this type of cost as a variable cost, a fixed cost, or mixed cost.
3.
Construct the graph that explains the relationship between the total cost of BE and the number of opening cost given. Also, identify this type of cost as a variable cost, a fixed cost, or mixed cost.
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Chapter 3 Solutions
Bundle: Managerial Accounting: The Cornerstone of Business Decision-Making, Loose-Leaf Version, 7th + CengageNOWv2, 1 term (6 months) Printed Access Card
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- Jimmy’s Suit House (JSH) rents out designer apparel to customers who want to wear formal suits on special events but are unwilling to purchase them. For example, a customer can rent a $1,000 suit for $25 per day for a 10-day rental period. To rent a suit, a customer visits the JSH website, which shows the available suits and their rental prices. The number of webpage views is surprisingly large, but not everyone finally rents. Many leave the website because of not finding the suits they like. On average, JSH sees the demand of 200 rental orders per day. To ensure that enough customers find suits, JSH keeps 1,600 suits in their Rental-Ready Inventory, including different styles and sizes. This number must be substantial due to the variety of suits JSH keeps and the policy that JSH ships two suits (same style in two different sizes) to satisfy a customer’s request for one suit. When taking a rental order, JSH requires that a customer specify two sizes for the requested suit—the most…arrow_forwardHannah Ortega is considering expanding her business. She plans to hire a salesperson to cover trade shows. Because of compensation, travel expenses, and booth rental, fixed costs for a trade show are expected to be $10,780. The booth will be open 22 hours during the trade show. Ms. Ortega also plans to add a new product line, ProOffice, which will cost $180 per package. She will continue to sell the existing product, EZRecords, which costs $94 per package. Ms. Ortega believes that the salesperson will spend approximately 12 hours selling EZRecords and 10 hours marketing ProOffice. Required a. Determine the estimated total cost and cost per unit of each product, assuming that the salesperson is able to sell 78 units of EZRecords and 59 units of ProOffice. b. Determine the estimated total cost and cost per unit of each product, assuming that the salesperson is able to sell 205 units of EZRecords and 110 units of ProOffice. Note: For all requirements, round "Cost per unit" to 2 decimal…arrow_forwardYou’re a self-employed widget manufacturer. Over the years you’ve developed a good relationship with Liddy Lawyer and now use her for all of your lawyerly needs in connection with your business. You and Liddy have an arrangement whereby you simply pay her a flat $5,000 a month retainer and she does not bill you for her actual time, regardless of how much (or little) time she spends on your work. Liddy’s usual hourly rate is $250. For your own recordkeeping she does report to you how many hours she spends on your work even though it doesn’t change what you pay her. During 2020 Liddy handled the following three matters (only) for you – Negotiated the terms of a new five-year lease of a widget-making machine (50 hours). Defended and negotiated the settlement of a lawsuit filed against you by a customer who claimed that the widgets you had sold were defective (180 hours). Handled and settled your IRS audit in which all issues related to claimed “ordinary and necessary business…arrow_forward
- Managerial Accounting: The Cornerstone of Busines...AccountingISBN:9781337115773Author:Maryanne M. Mowen, Don R. Hansen, Dan L. HeitgerPublisher:Cengage Learning
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