Mixed Costs and Cost Formula Ben Palman owns an art gallery. He accepts paintings and sculpture on consignment and then receives 20% of the price of each piece as his fee. Space is limited, and there are costs involved, so Ben is careful about accepting artists. When he does accept one, he arranges for an opening show (usually for 3 hours on a weekend night) and sends out invitations to his customer list. At the opening, he serves wine, soft drinks, and appetizers to create a comfortable environment for prospective customers to view the new works and to chat with the artist. On average, each opening costs $600. Ben has given as many as 20 opening shows in a year. The total cost of running the gallery, including rent, furniture and fixtures, utilities, and a part-time assistant, amounts to $120,000 per year.Required:1. Assume that the cost driver is number of opening shows. Develop the cost formula for the gallery's costs for a year.
2. Using the cost formula developed above, what is the total cost for Ben in a year with 12 opening shows?
$
Using the cost formula developed above, what is the total cost for Ben in a year with 14 opening shows?
$

Answers

Answer 1

Answer:

$136,200 is the total costs for 14 opening shows

Explanation:

See attached file

Related Questions

Comparing Costs of Credit Using Three Calculation Methods. You have been pricing a compact disk player in several stores. Three stores have the identical price of $300. Each store charges 18 percent APR, has a 30-day grace period, and sends out bills on the first of the month. On further investigation, you find that store A calculates the finance charge by using the average daily balance method, store B uses the adjusted balance method, and store C uses the previous balance method. Assume you purchased the disk player on May 5 and made a $100 payment on June 15. What will the finance charge be if you made your purchase from store A? From store B? From store C? (Obj. 2)
What would you include in a recommendation to the CEO for a better method for evaluating the performance of the divisions?a.The method used to evaluate the performance of the divisions should be reevaluated. b.A better divisional performance measure would be the rate of return on investment c.A better divisional performance measure would be the residual income. d.None of these choices would be included. e.All of these choices (a, b & c) would be included.
In the initial Cournot duopoly equilibrium, both firms have constant marginal costs, m, and no fixed costs, and there is a barrier to entry. Show what happens to the best-response function of firms if both firms now face a fixed cost of F Let market demand be p-a -bQ, where a and b are positive parameters with 2 firms. Let q1 and q2 be the amount produced by firm 1 and firm 2, respectively. Assuming it is optimal for the firm one to produce, its best-response function is I. (Properly format your expression using the tools in the palette. Hover over tools to see keyboard shortcuts. Eg., a subscript can be created with the- q1 = character.)
ameron Company uses a process cost system and the weighted average method to account for its production. The following information was available for August: units Costs Work in Process, August 1 100 $ 2,990 Work in Process, August 31 200 (A) During the month, 800 units were started into production, and $5,000 in costs were incurred. Ending inventory was 50% complete. The cost of the units transferred out would be: (Do not round your intermediate calculations.)
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Which of the following probably occurred as the U.S. economy experienced increasing real GDP in 1954? Check all that apply.Car sales declined.

Total real income increased.

The unemployment rate declined.

Corporate profits increased.

Answers

Answer:

The answer are: total real income increased, the unemployment rate declined; Corporate profits increased.

Explanation:

As real GDP increases, people/entities in the economy enjoy actual increase in their income ( income adjusted for inflation effect), thus they will tend to spend more, making "car sales declined" a wrong answer whil "total real income increased" the right one.

Higher spending also means demand for goods and services are higher helping to boost the corporate's profit up. Once the profit is higher, corporate will have plan to expand their business leading to a higher demand in labor which in turn reduce the unemployment rate.

Answer:

Explanation:

The Silver Corporation uses a predetermined overhead rate to apply manufacturing overhead to jobs. The predetermined overhead rate is based on labor cost in Department A and on machine-hours in Department B. At the beginning of the year, the Corporation made the following estimates: Department A Department B Direct labor cost $ 60,000 $ 40,000 Manufacturing overhead $ 90,000 $ 45,000 Direct labor-hours 6,000 9,000 Machine-hours 2,000 15,000 What predetermined overhead rates would be used in Department A and Department B, respectively?

Answers

Answer:

Instructions are below.

Explanation:

Giving the following information:

Department A:

Direct labor cost= $60,000

Manufacturing overhead= $90,000

Department B:

Manufacturing overhead= $45,000

Machine-hours= 2,000

To calculate the predetermined manufacturing overhead rate we need to use the following formula:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Department A:

Predetermined manufacturing overhead rate= 90,000/60,000

Predetermined manufacturing overhead rate= $1.5 per direct labor dollar

Department B:

Predetermined manufacturing overhead rate= 45,000/2,000= $22.4 per machine-hour

The Macro Islands can produce either 250 bamboo towels or 500 botanical soaps using all its resources. The Micro Islands can produce either 30 bamboo towels or 300 botanical soaps using all its resources. Based on this information, which of the following is true?The Macro Islands have a comparative advantage in producing both goods.
The Micro Islands have a comparative advantage in producing neither good.
The Micro Islands have a comparative advantage in producing bamboo towels.
The Micro Islands have a comparative advantage in producing botanical soaps.
The Micro Islands have a comparative advantage in producing both goods.

Answers

Answer:

The Micro Islands have a comparative advantage in producing botanical soaps.

Explanation:

Comparative advantage can be defined as the ability of an economy to produce a good at lower opportunity cost than other economies. This enables the economy sell the product at lower prices, therefore having higher margin of profit than other economies.

The opportunity cost of Micro Island in producing 300 botanical soaps is the cost of producing 30 bamboo towels. The opportunity cost is quite low.

While for Macro Island the opportunity cost of producing 500 botanical soaps is 250 bamboo towels. The opportunity cost is higher than for Micro Island.

the c shellsort() function takes an array of gap values as a parameter. the array must contain a gap value of to guarantee proper sorting.

Answers

If the collection of gap values contains 1, ShellSort will correctly sort an array using that collection. the InsertionSort method The normal insertion sort is identical to interleaved with a gap of 1.

How does Shellsort work?

An expanded variant of the insertion sort algorithm is shell sort. In order to lessen the distance between the components to be sorted, it first sorts those that are far apart from one another. Based on the chosen sequence, the space between the pieces is compressed.

What is gap size in shell sort?

We start by selecting a gap size, which establishes the distance between the values in a subsequence. In the case of a starting gap size of 6, for instance, the first subsequence would contain values at positions 1, 7, 13, 19, and so forth, whereas the second subsequence would contain values at positions 2, 8, 14, 20, and so forth.

To know more about Shellsort visit: brainly.com/question/23609675

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Suppose an industry is made up of 16 firms. Three firms each sell 12 percent of the industry's total output; another three firms each sell 8 percent; another five firms each sell 5 percent; and the last five firms each sell 3 percent. What is the eight-firm concentration ratio in this industry?

Answers

Answer: The eight-firm concentration ratio in this industry is 0,7.

Explanation: The concentration ratio measures the proportion of total production produced by, in this case, the first eight largest companies in an industry. It is calculated by dividing the market share of the first eight firms in the industry by the total market share.

So: The first 8 firms sell: 3 each 12%. The next 3 each 8%. And thirdly 2 firms each 5%.

Then we calculate: (3x12) + (3x8) + (2x5) = 70% These companies represent 70% of the industry's total output.

So the concentration ratio is = $(70)/(100)$ = 0,7

Boney Corporation processes sugar beets that it purchases from farmers. Sugar beets are processed in batches. A batch of sugar beets costs $53 to buy from farmers and $18 to crush in the company's plant. Two intermediate products, beet fiber and beet juice, emerge from the crushing process. The beet fiber can be sold as is for $25 or processed further for $18 to make the end product industrial fiber that is sold for $39. The beet juice can be sold as is for $32 or processed further for $28 to make the end product refined sugar that is sold for $79.Which of the intermediate products should be processed further?

Garrison 16e Rechecks 2017-09-13, 2017-11-11

Multiple Choice

beet fiber should be processed into industrial fiber; beet juice should NOT be processed into refined sugar

beet fiber should be processed into industrial fiber; beet juice should be processed into refined sugar

beet fiber should NOT be processed into industrial fiber; beet juice should be processed into refined sugar

beet fiber should NOT be processed into industrial fiber; beet juice should NOT be processed into refined sugar

Answers

Answer:

Beet fiber should NOT be processed into industrial fiber; beet juice should be processed into refined sugar

Explanation:

A company should process further a product if the additional revenue from the split-off point is greater than than the further processing cost.

Also note that all cost incurred up to the point of crush are irrelevant to the decision to process further

Product Additional Rev. Further process cost. Net income(loss)

Fiber 14 i.e (39 -25) 18 (4)

Juice 47.i,e (79- 32) i.e 28 19

The beet fiber should not be process further while the beet juice should be be processed further into refined sugar . Processing Beet Juice further will generate additional income of 19 per unit

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