Question
Olivia taught high schools students to support herself through University. After she completed her studies in Education, she started her own business - SubjectAssist .
Olivia taught high schools students to support herself through University. After she completed her studies in Education, she started her own business - SubjectAssist. Subject Assist offers online tutoring to high school students throughout the state. By the end of 2020, Olivia had recruited 25 teacherss. Each year she prepares a budget and sets challenging but achievable targets for her business. The results for the year ended 31 December 2020 are presented below.
The education department conducts surveys and publishes annual reports on the personal tutorial market in the state. Olivia relies on these reports to analyse the profit variance for her business.
Olivia prepared the budget for 2020 in November 2019. At the time she estimated the size of the personal tutorial market in her area and used that estimate to prepare the budget. Her estimate would have been nearest to:
Group of answer choices
91,800 tutorial hours
97,595 tutorial hours
99,879 tutorial hours
103,275 tutorial hours
SubjectAssist Profit Variance Analysis For the year ended 31 December 2020 FLEXED BUDGET variance BUDGET variance ACTUAL 28 25 83 85 Number of tutors Number of students Market share Sales Volume (tutorial hours) 5.0000% 4590 4.3742% 4269 4269 Revenue LESS variable costs Contribution margin Non-variable costs Operating profit $ 298,350 (252,450) 45,900 (5,000) 40,900 $ (20,865) 277,485 17,655 (234,795) (3,210) 42,690 0 (5,000) (3,210) 37,690 $ (36,073) 241,412 29,584 (205,211) (6,489) 36,201 (1,150) (6,150) (7,639) 30,051 Size of personal tutoring market in SubjectAssists Area Year ended 31 December 2018: 99,879 tutorial hours Year ended 31 December 2019: 103,275 tutorial hours Year ended 31 December 2020: 97,595 tutorial hoursStep by Step Solution
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