You plan on starting a lawn mowing business by investing $700 of your own money and purchasing $500 of equipment. You plan to work 210 hours per month and charge your customers $17 per hour. Your anticipated costs include: Advertising $13.00 per month Gas $1.50 per hour Depreciation Assistant's Wages $25.00 per month $10.00 per hour Miscellaneous Expenses $50.00 per month Calculate your monthly operating income on your budgeted monthly contribution margin income statement.

You plan on starting a lawn mowing business by investing $700 of your own money and purchasing $500 of equipment. You plan to work 210 hours per month and charge your customers $17 per hour. Your anticipated costs include: Advertising $13.00 per month Gas $1.50 per hour Depreciation Assistant's Wages $25.00 per month $10.00 per hour Miscellaneous Expenses $50.00 per month Calculate your monthly operating income on your budgeted monthly contribution margin income statement.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 8EB: Shonda & Shonda is a company that does land surveys and engineering consulting. They have an...

See similar textbooks

Similar questions

Problem 9) An entrepreneur is considering opening a coffee shop in downtown Pasadena. The building that he is considering will have a monthly lease payment of $3200 and basic utility costs of $600-per month. Two employees will be hired at $10.00/hour/employee (including overhead and benefits). Each employee will work an average of 170 hours per month. The average revenue per customer is estimated at $7.00. The variable cost of serving each customer is estimated at $2.00. (a) Calculate how many customers per month it will take for the coffee shop owner to breakeven. (b) How many customers would need to be served per month to achieve a monthly profit of $5,000?
SC You have a lawn mowing business. You plan to work 250 hours per month and charge your customers $24 per hour. Your anticipated costs include: Advertising $25 per month Gas $1.30 per hour $25 per month $8.00 per hour $30 per month Depreciation on mowers Assistant's Wages Miscellaneous Expenses You plan on paying 60% of your monthly costs in the month incurred, 30% in the second month and the remainder in the following month. Calculate the amount of cash payments for operating activities in your second month of business. Click Save and Submit to save and submit. Click Save All Answers to save all answers. ! 1 Q IL A 2 W S # 3 E D $ 4 R % 5 F MacBook Pro T 6 G & Y 7 H * 00 8 U 9 T K J
You plan on starting a lawn mowing business by investing $700 of your own money and purchase $500 of equipment. You plan to work 330 hours per month and charge your customers $18 per hour. Your anticipated costs include: Advertising Gas $18.00 per month Depreciation $1.40 per hour $33.00 per month $10.00 per hour Assistant's Wages Miscellaneous Expenses $40.00 per month Calculate the Equipment net of Accumulated Depreciation at the end of your second month of business on the budgeted balance sheet. +
QUESTION 5 You currently work as a machinist for a factory. Your salary is $28,000 per year. You are thinking about quitting your job and going back to college. It will take you two years to obtain your college degree. Tuition and other costs of the education will total $24,000. You also intend to keep your car by making $250 per month payments out of your savings. How much is the opportunity cost of going to college. $28,000 $56,000 $52,000 $62.000 QUESTION 6 The scattergraph is a useful tool for: Analyzing abrupt changes in cost behavior Determining actual variable costs Determining the break-even point Working outside the relevant range
You plan on starting a lawn mowing business by investing $700 of your own money and purchasing $500 of equipment. You plan to work 310 hours per month and charge your customers $15 per hour. Your anticipated costs include: Advertising $31 per month Gas $1.50 per hour Depreciation $25 per month Assistant's Wages $8.00 per hour Miscellaneous Expenses $50 per month Calculate your budgeted sales revenue for the year.
K A person buys a phone for $88 and signs up for a single ine phone plan with 2000 monthly anytime minutes. The plan costs $115.93 per month Write an equation that can be used to determine the total cost. C(t), of this phone plan fort months Then, find the cost for 23 months, assuming that the number of minutes the person uses does not exceed 2000 per month An equation that can be used to determine the total cost Con of the phone plan for 1 months is Cm= (Use integers or decimals for any numbers in the expression) The cost for 23 months, assuming that the number of minutes the person uses does not exceed 2000 per month, s empts ) of -
Question ENGINEERING ECONOMICS You want to launch a printing services business on campus. The initial cost to get the business running with a September 1st launch date would be $2,000. You estimate that the revenues would approximately offset your costs (e.g. paper, toner, etc.) in the first month of operation so that the monthly profit would be $0. Afterwards, you estimate that profits would increase by $80 each month until the end of the academic year (i.e. $80 profit in October, $160 profit in November, etc. until the end of April). Your annual MARR is 10%, compounded monthly. (a) Calculate the internal rate of return for your investment based on an 8 months study period. Select the appropriate IRR between options 1 to 4 below. (b) Suppose that you now consider another investment opportunity for your printing business services, also with monthly profits, and the internal rate of return of 3%. Is this alternative economically feasible based on IRR?
QUESTION 1 Refer to Scenario 9.2 below to answer the question(s) that follow. SCENARIO 9.2: Tom borrowed $40,000 from his parents to open a donut stand. He agrees to pay his parents a 5% yearly return on the money they lent him. His other yearly fixed costs equal $10,000. His variable costs equal $25,000. He sold 40,000 dozen donuts during the year at a price of $2.00 per dozen. Refer to Scenario 9.2. Tom's total fixed costs equal O $1,000. O $10,000. $12,000. O $21,000.
You plan on starting a lawn mowing business by investing $700 of your own money and purchasing $500 of equipment. You plan to work 280 hours per month and charge your customers $17 per hour. Your anticipated costs include: Advertising $20 per month Gas $1.60 per hour Depreciation $25 per month Assistant's Wages $10.00 per hour Miscellaneous Expenses $60 per month Calculate your budgeted Sales Revenue for the month.
****Only answer this question if you are sure about the correct answer**** ***Internal rate of Return Question*** 23- You want to buy a solar system to your store. a. If the monthly energy bills you get now is $125. b. The solar panel system is expected to be usable for 30 years. c. The cost of the lar panels system is $18,000. d. The solar panels system will provide all the electricity for your store. e. There will be a 26% federal tax break for purchasing the solar panels system 1. What is the IRR % (...........) 2. Yes or no, based on IRR is this a good investment (.........)
Capital One is advertising a 60-month, 5.99% APR motorcycle loan. If you need to borrow $8,000 to purchase your dream Harley Davidson, what will your monthly payment be? Question content area bottom Part 1 Your monthly payment will be $enter your response here. (Round to the nearest cent.)
Exercise #5: You are leasing a car worth $32,000 for 36 months. You put down $1200 now and agree to monthly payments. The residual value is $17,000. The financing rate is 6% (monthly compounded). How much are your monthly payments going to be? Draw the time line, work the calculator entries. 0 1 2 What is the EAR in this problem? EAR = ... [10]...............% $ ***** -1 36 [9]