Noels Mobile Pet Services Company has a grooming department staffed by 10 professional pet groomers. Each groomer
Question:
Noel’s Mobile Pet Services Company has a grooming department staffed by 10 professional pet groomers. Each groomer is paid $75,000 per year and is able to process 5,000 grooming orders. Last year, 46,000 grooming orders were processed by the 10 groomers.
Required:
1. Calculate the activity rate per grooming order.
2. Calculate, in terms of grooming orders, the:
a. total activity availability
b. unused capacity
3. Calculate the dollar cost of:
a. total activity availability
b. unused capacity
4. Express total activity availability in terms of activity capacity used and unused capacity.
5. What if one of the professional groomers agreed to work half time for $14,000? How many grooming orders could be processed by nine and a half professional groomers? What would unused capacity be in grooming orders?
Step by Step Answer:
Cost Management
ISBN: 978-0357141090
5th Edition
Authors: Don R Hansen, Maryanne M Mowen, Dan L Heitger