Carr Company provides human resource consulting services to small- and medium-sized companies. Last year, Carr provided services to 600 clients. Total fixed costs were $224,000 with total variable costs of $75,000. Based on this information, complete the following chart: 400 clients 700 clients 800 clients Total costs Fixed costs $ Variable costs Total costs $4 Cost per client Fixed cost Variable cost Total cost per client $ %24 %24 %24 %24 %24
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- Roper Furniture manufactures office furniture and tracks cost data across their process. The following are some of the costs that they incur. Classify these costs as fixed or variable costs, and as product costs or period costs. Wood used to produce desks ($125,00 per desk) Production labor used to produce desks ($15 per hour) Production supervisor salary ($45,000 per year) Depreciation on factory equipment ($60,000 per year) Selling and administrative expenses ($45,000 per year) Rent on corporate office ($44,000 per year) Nails, glue, and other materials required to produce desks (varies per desk) Utilities expenses for production facility Sales staff commission (5% of gross sales)Carr Company provides human resource consulting services to small and medium-sized companies. Last year, Carr provided services to 600 clients. Total fixed costs were $224,000 with total variable costs of $72,600. Based on this information, complete the following chart: 400 clients 700 clients 800 clients Total costs Fixed costs Variable costs Total costs Cost per client Fixed cost Variable cost Total cost per client 224,000✔ 224,000 $ ✓224,000 ✓ $Carr Company provides human resource consulting services to small and medium-sized companies. Last year, Carr provided services to 600 clients. Total fixed costs were $224,000 with total variable costs of $72,600. Based on this information, complete the following chart: 400 clients 700 clients 800 clients Total costs Fixed costs Variable costs Total costs Cost per client Fixed cost Variable cost Total cost per client $
- Carr Company provides human resource consulting services to small- and medium-sized companies. Last year, Carr provided services to 700 clients. Total fixed costs were $360,000 with total variable costs of $86,800. Based on this information, complete the following chart: 500 clients 800 clients 900 clients Total costs Fixed costs $fill in the blank 1 $fill in the blank 2 $fill in the blank 3 Variable costs fill in the blank 4 fill in the blank 5 fill in the blank 6 Total costs $fill in the blank 7 $fill in the blank 8 $fill in the blank 9 Cost per client Fixed cost $fill in the blank 10 $fill in the blank 11 $fill in the blank 12 Variable cost fill in the blank 13 fill in the blank 14 fill in the blank 15 Total cost per client $fill in the blank 16 $fill in the blank 17 $fill in the blank 18The following analysis of selected data is for each of the two services Gates Corporation provides. Service A Service B Per-service data at 10,000 services Sales price $50 $46 Service costs: Variable 15 21 Fixed 6 4 Selling and administrative expenses: Variable 5 3 Fixed 3 1 In the Gates operation, labor capacity is the company's constraining resource. Each unit of A requires 3 hours of labor, and each unit of B requires 2 hours of labor. Assuming that all services can be sold at a normal price, prepare an analysis showing which of the two services should be provided with any unused productive capacity that Gates might have. Service A B Revenue Answer Answer Less: Variable cost Answer Answer Contribution margin Answer Answer Labor hours per unit Answer Answer Contribution margin per labor hour Answer Answer Any unused capacity should be devoted to Service B,…Brant Consulting designs costing and transfer pricing system for its clients. Here is a summary of volume, revenue, and cost expectations for the upcoming year: Item Costing Projects Per Per Unit 75 Jobs Total Unit 50 Jobs $10,000 $500,000 $15,000 $1,125,000 $1,625,000 4,500 225,000 11,500 862,500 1,087,500 Contribution margin $5,500 $275,000 $3,500 $262,500 $537,500 Fixed cost 473,000 Profit $64,500 Assume a constant sales mix. (a) How many Costing systems must Brant Consulting sell to breakeven? How many Transfer Pricing systems must Brant Consulting sell to breakeven? (b) How many Costing systems must Brant Consulting sell to achieve a target profit of $86,000? How many Costing systems must Brant Consulting sell to achieve a target profit of $86,000? Transfer Pricing Projects Revenue Variable cost Firm X X X x Round up the total number of systems before determining the allocation between Costing and Transfer Pricing.
- Carr Company provides human resource consulting services to small- and medium-sized companies. Last year, Carr provided services to 700 clients. Total fixed costs were $159,000 with total variable costs of $87,500. Based on this information, complete this chart: Carr Company data Costs 500 clients 800 clients 900 clients Total costs Fixed costs Variable costs Total costs Cost per client Fixed cost Variable cost Total cost per client Round to the nearest dollar, no decimal places.A monthly income statement for a small consulting company is shown below. From these data calculate the following: a. Labor Utilization Rate b. Break Even Multiplier c. Effective Labor Multiplier. REVENUE $372,000| Sales 372,000 COSTS $276,000 Direct Costs $120,000| Salaries 120,000 Indirect Costs $156,000 Salaries 73,500 Benefits 54,190 Rent 5,000 Utilities 1,950 3,210 5,970 Professional Development Depreciation Supplies Used 1,820 Interest 1,760 Other 8,600 NET INCOME (PROFIT) $96,000Using ABM in a service company Haworth Company is a management consulting firm. The company expects to incur $167,500 of indirect costs this year. Indirect costs are allocated based on the following activities: Haworth bills clients at 120% of the direct labor costs. The company has estimated direct labor costs at $240 per hour. Last month, Haworth completed a consulting job for Client 76 and used the following resources: Determine the total cost of the consulting job and the operating income earned.
- Assume the following financial data pertains to a certain single-product lodging business: Room Sales $400,000 Total Variable Costs $260,000 Contribution Margin $140,000 Total Fixed Costs $ 76,000 IBIT $ 64,000 Based on the financial data provided, the breakeven point isLillibridge & Friends, Incorporated provides you with the following data for its single product: Sales price per unit $ 170 Fixed costs (per quarter): Selling, general, and administrative (SG&A) 1,500,000 Manufacturing overhead 4,500,000 Variable costs (per unit): Direct labor 20 Direct materials 23 Manufacturing overhead 21 SG&A 17 Number of units produced per quarter 500,000 units Required: Compute the amounts for each of the following assuming that the production levels are within the relevant range if the number of units is 500,000 per quarter. Also calculate if the number of units increases to 600,000 per quarter. Note: Do not round intermediate calculations. Round your answers to 2 decimal places.Intricate Computer Solutions provides services to corporate and individual customers. During the month of June, the corporate business segment provided services to 400 customers and earned $60,000 in revenue. The individual business segment provided services to 200 customers and earned $35,000 in revenue. The variable costs for the corporate and individual business segments amounted to $33,000 and $25,300, respectively. Inaddition, the fixed costs of the company amounted to $8,000. Calculate the contribution margin from each corporate customer. (Round your answer to the nearest cent.)