Question
Explain how you will use 2 activity levels from your Budgeted Income Statement and 2 scenarios from your Cost-Volume-Profit analysis to make internal business decisions.
Explain how you will use 2 activity levels from your Budgeted Income Statement and 2 scenarios from your Cost-Volume-Profit analysis to make internal business decisions. The business that i choose for my project will be sale of services, more specific it's a livery service (limousine public transportation). I choose this kind of business because i want to start with something small like a family business which gives you the flexibility and can make your own schedule. Liveries are licensed public passengers that charge a rate of fare which is not based on a meter. Livery rides and fares must be prearranged. Also the livery driver needs to have a livery chauffeur license which must be renewed every 2 years. Selling price for service. Company offers 3 tapes of ride services:
a) In the city from point to point service is $90;
b) From/to airport transfer to/from city service is $120;
c) Hourly charter is $85/h and requires a 2 hours minimum charter.
Step by Step Solution
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There are 3 Steps involved in it
Step: 1
Activity level 1 The company sells only point to point services in the city at an act...Get Instant Access to Expert-Tailored Solutions
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Step: 2
Step: 3
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