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

Task- this assessment task consists of five

Task- This assessment task consists of five questions. Question 1 - Financial statement disclosures You are the financial accountant for Rainyday Ltd, and are in the process of preparing its financial statements for the ...

Assignment- fraud in the accounting information systemfor

Assignment- Fraud in the Accounting Information System For this assignment, research the Internet or Strayer databases to locate a firm that was involved in a fraud and / or embezzlement case. Explain how the firm's acco ...

Accounting information systems assignment-the processes of

ACCOUNTING INFORMATION SYSTEMS ASSIGNMENT- The processes of selecting an AIS/ERP to make informed decision for investment in accounting software. Assignment Scenario- B Bakery is a family owned firm with around 70 employ ...

Assignment - review of current accounting issuestask -in

Assignment - Review of Current Accounting Issues Task - In your accounting career you will be required to analyse current accounting issues and communicate your theoretical understanding to your professional colleagues a ...

On 30 june 2006 salohcin ltd entered into a nonshy

On 30 June 2006, Salohcin Ltd entered into a non­ cancellable lease with Ffoeg Ltd, for a period of 4 years. The lessor is a Manufacturer/Dealer of the leased equipment. The leased asset is a specific item of industrial ...

Do the following assignment using microsoft excel

Do the following assignment using Microsoft Excel (handwritten projects will not be accepted) This is an individual assignment, make sure you have included your name, Id and Section no on the printout. Submit in class on ...

Accounting concepts individual problem setshort answer

Accounting Concepts Individual Problem Set Short Answer Questions- 1. True or false? The entity concept tells us that we should not co-mingle resources of one entity with another entity's resources. Explain your answer. ...

Financial accounting assignment-part 1 - task detailsmonash

Financial Accounting Assignment- Part 1 - Task details: Monash Cow Ltd operates dairy farms across different locations of Victoria. Since the start of its operation in 1981, the firm's business has been rapidly growing a ...

In your accounting career you will be required to analyse

In your accounting career you will be required to analyse current accounting issues and communicate your theoretical understanding to your professional colleagues and your clients. For this assignment assume that you are ...

Accounting theory assignment-read the articles on study

Accounting Theory Assignment- Read the articles on study desk: Volkswagen The scandal explained Instructions This assignment is a research based essay where you are required to relate a practical example to accounting th ...

  • 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

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate