Question
Numbers of cars detailed 2,080 Revenue $468,000 Less operating expenses: Supplies (polish, wax, etc.) $5,824 Salaries of detailers 104,000 Water and other variable costs 12,480
| Numbers of cars detailed | 2,080 | |||
| Revenue | $468,000 | |||
| Less operating expenses: | ||||
| Supplies (polish, wax, etc.) | $5,824 | |||
| Salaries of detailers | 104,000 | |||
| Water and other variable costs | 12,480 | |||
| Supervisors salary | 65,000 | |||
| Rent | 36,000 | |||
| Depreciation | 5,000 | |||
| Other fixed costs | 1,050 | 229,354 | ||
| Income before taxes | $238,646 |
Quincy Davis, the owner of Sterling, is considering extending the workweek through Saturday. If he takes this action, hell hire a part-time employee for $300 per day to act as the Saturday manager so the supervisor still can have Saturday off. Quincy estimates that his company will detail an additional 10 cars per Saturday, 52 weeks per year.
Calculate the annual incremental revenue associated with being open on Saturday.
| Annual incremental revenue |
Calculate the incremental cost associated with being open on Saturday.
| Incremental cost |
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College Accounting, Chapters 1- 15
Authors: James A. Heintz, Robert W. Parry
23rd Edition
0357391942, 9780357391945
