Maurice Tutor

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Algebra,Applied Sciences See all
Algebra,Applied Sciences,Biology,Calculus,Chemistry,Economics,English,Essay writing,Geography,Geology,Health & Medical,Physics,Science Hide all
Teaching Since: May 2017
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  • MCS,PHD
    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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  • Professor
    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 24 Aug 2017 My Price 10.00

Quality Cabinet Construction

23.       CVP—sensitivity analysis; spreadsheet recommended. Quality Cabinet Construction is considering introducing a new cabinet-production seminar with the following price and cost characteristics:

 

Tuition..................................................................................................................................                                                $200 per Student Variable    Costs   (wood,    supplies,  etc.)...........................................................................                     $120 per Student

Fixed Costs (advertising, instructor’s salary, insurance, etc.) ...............................                $400,000 per Year

 

a.       What enrollment enables Quality Cabinet Construction to break even?

b.       How many students will enable Quality Cabinet Construction to make an operating profit of $200,000 for the year?

c.       Assume that the projected enrollment for the year is 8,000 students for each of the following situations:

(1)    What will be the operating profit for 8,000 students?

(2)    What would be the operating profit if the tuition per student (that is, sales price) decreased by 10 percent? Increased by 20 percent?

(3)    What would be the operating profit if variable costs per student decreased by 10 percent? Increased by 20 percent?

(4)    Suppose that fixed costs for the year are 10 percent lower than projected, whereas variable costs per student are 10 percent higher than projected. What would be the operating profit for the year?

 

Answers

Maurice Tutor
(5)
Status NEW Posted 24 Aug 2017 10:08 PM My Price 10.00

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