CIA Review, Inc., provides review courses twice each year for students studying to take the CIA exam. The cost of textbooks is included in the registration fee. Text material requires constant updating and is useful for only one course. To minimize printing costs and ensure availability of books on the first day of class, CIA Review has books printed and delivered to its offices two weeks in advance of the first class. To ensure that enough books are available, CIA Review normally orders 10 percent more than expected enrollment. Usually there is an oversupply and books are thrown away. However, demand occasionally exceeds expectations by more than 10 percent and there are too few books available for student use. CIA Review has been forced to turn away students because of a lack of textbooks. CIA Review expects to enroll approximately 200 students per course. The tuition fee is $840 per student. The cost of teachers is $25,000 per course, textbooks cost $53 each, and other operating expenses are estimated to be $27,500 per course. Assume all financial statements data are prepared in accordance with GAAP. Required a. Prepare an income statement, assuming that 200 students enroll in a course. Determine the cost of waste associated with unused books. b-1. Prepare an income statement, assuming that 242 students attempt to enroll in the course, but 22 students are turned away because of too few textbooks. b-2. Prepare an income statement, assuming that 242 students attempt to enroll in the course, with all being accepted. b-3. Determine the amount of lost profit resulting from the inability to serve the 22 additional students. c. Suppose that textbooks can be produced through a high-speed copying process that permits delivery just in time for class to start. The cost of books made using this process, however, is $58 each. Assume that all books must be made using the same production process. In other words, CIA Review cannot order some of the books using the regular copy process and the rest using the high-speed process. Prepare an income statement under the JIT system assuming that 200 students enroll in a course. d-1. Assume the same facts as in requirement with respect to a JIT system that enables immediate delivery of books at a cost of $58 each. Prepare an income statement under the JIT system, assuming that 242 students enroll in a course. d-2. Which system results in higher income? Complete this question by entering your answer in the tabs below. Red A Req B1 Reg B2 Req3 Reqc Reg Di Reg D2 Prepare an income statement, assuming that 200 students enroll in a course. Determine the cost of waste associated with unused books. U-1. ASSUNT Sale TOLLS OS TequireLL WILT Speli wa Jil System uiditidur each. Prepare an income statement under the JIT system, assuming that 242 stude d-2. Which system results in higher income? Complete this question by entering your answer in the tabs below. Req A Req B1 Req B2 Req B3 Reqc Reg D1 RE Prepare an income statement, assuming that 200 students enroll in a course. Determine the unused books. CIA REVIEW, INC. Income Statement | Cost of goods sold Cost of teachers Cost of textbooks Other operating expenses Revenue Cost of waste associated with unused books Req B1 > UULIT PILLUULULLLLLLL Reg A. Reg B1 Req B2 Req B3 Reqc Prepare an income statement, assuming that 200 students enroll in a c unused books. CIA REVIEW, INC. Income Statement Expenses Total expenses *** EEEEEEEEEEEEEEEEEEE wwwwww.............. ................... Net income Net loss LULUHCI lue lle il system, assuming that 242 students d-2. Which system results in higher income? Complete this question by entering your answer in the tabs below. Req A Req B1 Req B2 Req B3 E Reqc Req D1 Req Prepare an income statement, assuming that 242 students attempt to enroll in the course, bu because of too few textbooks. CIA REVIEW, INC. Income Statement ...... Cost of goods sold Cost of teachers Cost of textbooks Other operating expenses Revenue ReqA Req B2 > each. Prepare an income statement under the JIT system, assum d-2. Which system results in higher income? Complete this question by entering your answer in the tabs bel Req A Req B1 Req B2 Req B3 Reqc Prepare an income statement, assuming that 242 students attempt to e because of too few textbooks. CIA REVIEW, INC. Income Statement Expenses Cost of goods sold Cost of teachers Cost of textbooks Other operating expenses Revenue $ 0 Rega Cosy M iley YUUI DIVI I LIIL LUUJ UUIUI Req A Req B1 Req B2 Req B3 Reqc Prepare an income statement, assuming that 242 students attempt to enre because of too few textbooks. CIA REVIEW, INC. Income Statement Expenses Total expenses U . Assume ure baile duts as equieLL WILLI Spele LU S JI DYSHUB each. Prepare an income statement under the JIT system, assuming that 2 d-2. Which system results in higher income? Complete this question by entering your answer in the tabs below. Req A Req B1 Req B2 Reg B3 Reqc Reg Di Assume the same facts as in requirement c with respect to a JIT system that ena $58 each. Prepare an income statement under the JIT system, assuming that 242 CIA REVIEW, INC. Income Statement Expenses Total expenses Required Skipped a. Prepare an income statement, assuming that 200 students enroll in a course books. b-1. Prepare an income statement, assuming that 242 students attempt to enroll ir because of too few textbooks. b-2. Prepare an income statement, assuming that 242 students attempt to enroll i b-3. Determine the amount of lost profit resulting from the inability to serve the 22 c. Suppose that textbooks can be produced through a high-speed copying proc The cost of books made using this process, however, is $58 each. Assume th production process. In other words, CIA Review cannot order some of the bo using the high-speed process. Prepare an income statement under the JIT sy d-1. Assume the same facts as in requirement c with respect to a JIT system that e each. Prepare an income statement under the JIT system, assuming that 242 d-2. Which system results in higher income? Complete this question by entering your answer in the tabs below. Req A Req B1 Reg B2B Reg B3 ReqC Req D1 Which system results in higher income? UULIT PILLUULULLLLLLL Reg A. Reg B1 Req B2 Req B3 Reqc Prepare an income statement, assuming that 200 students enroll in a c unused books. CIA REVIEW, INC. Income Statement Expenses Total expenses *** EEEEEEEEEEEEEEEEEEE wwwwww.............. ................... Net income Net loss LULUHCI lue lle il system, assuming that 242 students d-2. Which system results in higher income? Complete this question by entering your answer in the tabs below. Req A Req B1 Req B2 Req B3 E Reqc Req D1 Req Prepare an income statement, assuming that 242 students attempt to enroll in the course, bu because of too few textbooks. CIA REVIEW, INC. Income Statement ...... Cost of goods sold Cost of teachers Cost of textbooks Other operating expenses Revenue ReqA Req B2 > each. Prepare an income statement under the JIT system, assum d-2. Which system results in higher income? Complete this question by entering your answer in the tabs bel Req A Req B1 Req B2 Req B3 Reqc Prepare an income statement, assuming that 242 students attempt to e because of too few textbooks. CIA REVIEW, INC. Income Statement Expenses Cost of goods sold Cost of teachers Cost of textbooks Other operating expenses Revenue $ 0 Rega Cosy M iley YUUI DIVI I LIIL LUUJ UUIUI Req A Req B1 Req B2 Req B3 Reqc Prepare an income statement, assuming that 242 students attempt to enre because of too few textbooks. CIA REVIEW, INC. Income Statement Expenses Total expenses U . Assume ure baile duts as equieLL WILLI Spele LU S JI DYSHUB each. Prepare an income statement under the JIT system, assuming that 2 d-2. Which system results in higher income? Complete this question by entering your answer in the tabs below. Req A Req B1 Req B2 Reg B3 Reqc Reg Di Assume the same facts as in requirement c with respect to a JIT system that ena $58 each. Prepare an income statement under the JIT system, assuming that 242 CIA REVIEW, INC. Income Statement Expenses Total expenses Required Skipped a. Prepare an income statement, assuming that 200 students enroll in a course books. b-1. Prepare an income statement, assuming that 242 students attempt to enroll ir because of too few textbooks. b-2. Prepare an income statement, assuming that 242 students attempt to enroll i b-3. Determine the amount of lost profit resulting from the inability to serve the 22 c. Suppose that textbooks can be produced through a high-speed copying proc The cost of books made using this process, however, is $58 each. Assume th production process. In other words, CIA Review cannot order some of the bo using the high-speed process. Prepare an income statement under the JIT sy d-1. Assume the same facts as in requirement c with respect to a JIT system that e each. Prepare an income statement under the JIT system, assuming that 242 d-2. Which system results in higher income? Complete this question by entering your answer in the tabs below. Req A Req B1 Reg B2B Reg B3 ReqC Req D1 Which system results in higher income?