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

Accounting assignmentflorida sunshine real estate

Accounting Assignment Florida Sunshine Real Estate Properties, Inc. is a real estate firm located in southwest Florida. The company, which advertises itself as "expert in the real estate market", monitors condominium sal ...

Analyze tootsie rolls 2015 consolidated statements of

Analyze Tootsie Roll's 2015 Consolidated Statements of Earnings and Retained Earnings. Discuss the relevance for a manufacturer of reporting a gross profit amount. Then calculate or report the 2015 Gross Profit Rate (%) ...

Term paperfirmsteamsanadarko petroleumadams michaelaellis

Term Paper Firms Teams Anadarko Petroleum Adams, Michaela Ellis, Tatiana Jenkins, Jordan Samuel, Brittany Cheniere Energy Amaefule, Frankie Fields, Brittanie Johnson, Brandon Small, Devin Chevron Corporation Brown, Tori ...

Accounting theory and contemporary issues individual case

Accounting Theory and Contemporary Issues Individual case study Assignment- Assessment Description - Learning Outcome:  Research and argue a position in regard to a contemporary issue in the accounting profession. Evalua ...

Current designsas a service to its customers current

CURRENT DESIGNS As a service to its customers, Current Designs repairs damaged kayaks. This is especially valuable to customers that have made a significant investment in the composite kayaks. To price the repair jobs, C ...

1 identify an industry to focus on it is suggested that you

1) Identify an industry to focus on (It is suggested that you use an industry that is expanding rather than consolidating, but the choice is yours to make). Explain why you chose this industry and its environment. 2) Ide ...

1 the prices of financial assets are based on the expected

1. The prices of financial assets are based on the expected value of future cash flows, discount rate, and past dividends. A. True B. False 2. By using different discount rates, the market allocates capital to companies ...

Accountingi for the month of january jims landscaping

Accounting I. For the month of January Jim's Landscaping Company has the following transactions: 1. Borrowed $5,000 from First National Bank on a note due in two years. 2. Received $12,500 cash from investors and issued ...

Assignmentapplication break-even analysiswhen expenses and

Assignment Application: Break-Even Analysis When expenses and revenues are equal, this is known as the "break-even point" or BEP. To determine break-even, an examination of fixed and variable costs (expenses) in relation ...

Question 1with respect to transferability of ownership

Question 1 With respect to transferability of ownership interests, a sole proprietor may: not transfer her interests may only transfer her interest with approval of the state freely transfer her interests transfer her in ...

  • 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

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

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen