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Need total expenses and net operating income The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers
Need total expenses and net operating income
The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers that it uses in its budgeting and performance reports-the number of courses and the total number of students. For example, the school might run two courses in a month and have a total of 64 students enrolled in those two courses. Data concerning the company's cost formulas appear below: Fixed Cost Cost per Cost per per Month Course Student $2,900 Instructor wages $290 Classroom supplies 1,240 65 Utilities Campus rent 4,800 2,200 Insurance Administrative expenses 3,900 41 5 For example, administrative expenses should be $3,900 per month plus $41 per course plus $5 per student. The company's sales should average $900 per student. The actual operating results for September appear below: Actual 54,700 Revenue 10,880 Instructor wages 18,410 Classroom supplies 1,910 Utilities 4,800 Campus rent 2,340 Insurance 3,810 Administrative expensesStep by Step Solution
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