Answer:
The total monthly fixed cost and the variable cost per hour is $1,540 and $23
The average contribution margin per hour is $27
Explanation:
The computation of the fixed cost and the variable cost per hour by using high low method is shown below:
Variable cost per hour = (High Operating cost - low operating cost) ÷ (High service hours - low service hours)
= ($11,200 - $4,300) ÷ (420 hours - 120 hours)
= $6,900 ÷ 300 hours
= $23
Now the fixed cost equal to
= High operating cost - (High service hours × Variable cost per hour)
= $11,200 - (420 hours × $23)
= $11,200 - $9,660
= $1,540
For computing the contribution margin per hour, first we have to compute the revenue per hour which is shown below:
= Revenue ÷ service hours
= $6,000 ÷ 120 hours
= $50
We know that,
The contribution per hour = Revenue per hour - variable cost per hour
= $50 - $23
= $27
Answer:
Dr Cash (3,000)
Cr Deferred Revenue (4,000)
Cr Service Revenue (Clinic) (7,000)
Explanation:
Preparation of the appropriate journal entry
Since we were told that kayakers pay the sum of $3,000 at $150 each, by adding to the $4,000 that was already paid in advance on July 30 this means we have to record the transaction by Debiting Cash with the amount of (3,000); Crediting Deferred Revenue with the amount of (4,000) and Crediting Service Revenue (Clinic) with the amount of (7,000)
Note that the credit side of the transaction which is Deferred Revenue of 4,000 -Service Revenue (Clinic) of 7,000 will give us (3,000)
Journal entry
Dr Cash (3,000)
Cr Deferred Revenue (4,000)
Cr Service Revenue (Clinic) (7,000)
Answer:
Pull factor becoming a push factor
Explanation:
Nigeria is the most populous black nation on earth and attracts a lot of tourist as well as investors at every point in time. During the 1970's, there was migration of people from other west African countries due to the economic stabilty and increasing economic expansion, thus making Nigeria a place to search for greener pasture within the continent. In the 1980's, there was an economic downturn that hit the country so hard that Nigerians started calling for the exit of fellow african nationals in the country. Most affected country then was Ghana and there was a slogan with tthe phrase 'Ghana-must-go'.
The phrase went on to become the name of the bags with which Ghanians left tthe country with.
N.B: look up Ghana-must-go bags on google.
Cheers.
<span>There is a popular rule
called the rule of 72 where in you will divide 72 by the interest rate of your
investment to know the length of time the value of your money will double. In here, 72 divided by 11 is 6.55 years. Your
$17,000 will be $34,000 after approximately 6.55 years.</span>
Answer: Extra Vacation ; Stay
Explanation:
<em>At the Nash equilibrium, Deloitte will choose </em><em><u>extra vacation</u></em><em> and Malik will respond with </em><em><u>stay</u></em><em>.</em>
A Nash Equilibrium is the optimal outcome for each player given the decisions of the other player.
Looking at the the sequential game tree, if Deloitte offered a Money Bonus, Malik would leave because it offers him a higher payout. Deloitte would not want this because they gain more when he stays.
If Malik is offered extra vacation however, Malik stands to gain more than every other option if he stays and Deloitte would therefore offer him this because it will still be a gain for them. This is the Nash equilibrium.