Question
I need help with these quesitons. Cecere Tech is a for-profit vocational school. The school bases its budget on two measures of activity (i,e., cost
I need help with these quesitons.
Cecere Tech is a for-profit vocational school. The school bases its budget on two measures of activity (i,e., cost drivers), namely student and course. The school uses the following data in its budgeting.
Revenue: Fixed element per month $0 Variable element per student $488 Variable element per course $0
Faculty wages: Fixed element per month $0 Variable element per student $0 Variable element per course $2900
Course supplies: Fixed element per month $0 Variable element per student $76 Variable element per course $42
Administrative expenses: Fixed element per month $55,700 Variable element per student $26 Variable element per course $29
In February the school budgeted for 1,740 students and 160 courses. The actual activity for the month was 1540 students and 161 courses.
Required:
Can you help me prepare the school's planning budget for February
Second Question:
Heavey Fabrication is a division of a major corporation. Last year the division had total sales of $21,120,000, net operating income of $2,006,400, and average operating assets of $6,000,000. The company's minimum required rate of return is 12%.
Required:
Can you help with What is the division's return on investment (ROI)?
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