Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

Sam heads the Training Centre of large HR Consulting firm EMT Consulting. Firm has three main departments: Recruitment, Training and Career Services.

Training Centre offers management training for employees of different businesses. Recruitment offers recruitment services and Career Services assists personnel with resumes and provides advice on career planning.

Training Centre employs two administrative assistants, 1 training officer and Sam, the manager on the permanent basis. Part-time trainers are hired on the as-needed basis. Part-time trainers are paid $1500 per workshop.

In 2008 Training Centre conduction 200 workshops with 20 individuals in each.  The charge per individual was $300. This is the maximum number of workshops which can be held in the year.

Following are the results for 2008.

Training Revenue (200 x 20 x $300)             $1,200,000
Less Expenses:
Trainer costs (200 x 2 x $1500)                       600,000
Manager’s Salary                                              120,000
Training officer                                                   90,000
Administrative staff                                             80,000
Utilities/phone costs                                            20,000
Manuals for participants                                      120,000
Advertising costs                                               125,000
Postage & other miscellaneous costs                       9,450
Total expenses                                             $ 1,164,450
Income from operations                                      $35,550
Common Allocated costs (10% of revenue)           120,000
Net Income or (loss)                                          $(84,450)

problems

1. a. Categorize each of the costs as variable or fixed.

b. What would be the effect on profit of entire company, if Training Centre was closed at the beginning of New Year?

2. Given the allocated costs at 10% of revenue, compute the number of workshops that should be offered to break-even.

3. Re-compute 2 above, supposing Sam can re-negotiate the part-time trainers’ cost to $1000 per workshop.

4. With an increase in globalization and companies outsourcing many jobs, Sam thinks that, additionally to management training, Training Centre must offer “second career” training.  Sam feels that this will add 100 more workshops with the average enrolment of 15 participants at the cost of $200 each.  The rate per participant is based on fact that a non-profit organization has offered its facilities, free of charge, to run the workshops.

What effect will this have on Training Centre profit?

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M99379

Have any Question? 


Related Questions in Accounting Basics

Question 1dollys best issued 200 shares of its 10 common

Question 1 Dolly's Best issued 200 shares of its $10 common stock in exchange for used packaging equipment with a fair market value of $2,400. The entry to record the acquisition of the equipment would include a A. debit ...

Write a 700- to 1050-word paper including the followingthe

Write a 700- to 1,050-word paper including the following: The purpose of accounting and financial reporting within your organization or an organization with which you are familiar. A description of the people, processes, ...

Accounting questions1 if cash is 2345 in 20x2 and 3671 in

Accounting Questions 1. If Cash is $2,345 in 20X2 and $3,671 in 20X1, what is the percentage of increase or (decrease) from 20X1 to 20X2? A. 56.55%******* B. (56.55%) C. 36.12% D. (36.12%) 2. Gross profit by department a ...

1 ahn nguyen a vietnamese joint stock company has net

1. Ahn Nguyen, a Vietnamese Joint Stock Company has net income of 52,000 Vietnamese Dong, () and the following items: Depreciation Expense   16,000 Accounts Receivable Increase                    12,000 Inventory Decreas ...

Abc stock has a share price of 150 today all rates of

ABC stock has a share price of $150 today. All rates of interest are 3% per annum on a continuously compounded basis. A one-year European call option on one share of stock struck at $147 is worth $15. Finally, ABC is sch ...

A company is considering to replace an existing machine for

A Company is considering to replace an existing machine for which two suppliers have given quotation. Supplier A has proposed a machine costing Rs. 180 lakh that uses the existing boiler while supplier B has quoted for t ...

Task1 create journal entries for the following

Task: 1. Create journal entries for the following transactions. 2. Draw up a T-accounts for each account affected by transactions. 3. Calculate ending balances for all T-accounts. Transactions: March, 1: Student Corp. re ...

Problem 1conceptual leasing bought a grader for 600000 and

Problem 1 "Conceptual Leasing bought a grader for $600,000 and the leased it back to Parole Inc. on January 1, 2011. The description of the lease follows: • Quarterly Rent Payments=$34,000 • Leaser term= 4 years (16 quar ...

Question 1 this problem continues the haupt consulting

Question 1: This problem continues the Haupt Consulting situation from Problem 2-64 of Chapter 2. Start from the trial balance and the posted T-accounts that Haupt Consulting prepared at December 18, as follows: HAUPT CO ...

Waupaca company establishes a 480 petty cash fund on

Waupaca Company establishes a $480 petty cash fund on September 9. On September 30, the fund shows $211 in cash along with receipts for the following expenditures: transportation-in, $51; postage expenses, $65; and misce ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro