=+The Sunrise Group (SG) is an environmentally conscious organisation that buys land with the objective of preserving
Question:
=+The Sunrise Group (SG) is an environmentally conscious organisation that buys land with the objective of preserving the natural environment. SG receives private contributions and takes no assistance from the government.
Fixed costs of operating the organisation are $1000000 per year. Variable costs (including purchase of land, environmental impact reports and title search) average $3000 per hectare. In 2015, SG expects to receive contributions of $19000000.
All contributions in excess of operating costs will be used to purchase land.
Required 1 How many hectares will SG be able to purchase in 2015?
Step by Step Answer:
Cost Accounting A Managerial Emphasis
ISBN: 9781442563377
2nd Edition
Authors: Monte Wynder, Madhav V. Rajan, Srikant M. Datar, Charles T. Horngren, William Maguire, Rebecca Tan