Question
Pet Energy Therapy Association (PETA) treats peoples' pets, and has the following cost structure: Charge per therapy session$95 Variable cost per therapy session$ 45 Fixed
Pet Energy Therapy Association (PETA) treats peoples' pets, and has the following cost structure:
Charge per therapy session$95
Variable cost per therapy session$ 45
Fixed costs$75,000
They expect to perform 2,000 two hour session each year (8/day, 5 days/week, 50 weeks/year).
A. Construct PETA's profit and loss statement. Profit/Loss $
B. How many sessions must PETA's perform to breakeven?Sessions.
C. To earn a profit of $80,000, how many sessions must they provide this year? Sessions.
D. If there is one fulltime employee, fully booked, who spends one hour on each session (8 sessions per day, 40 per week, 2,000/year), what would we need to assume about the additional sessions needed to earn $100,000?
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Step: 1
Answer PETA Profit and Loss Statement PL A Profit and Loss Statement RevenueCostProfitLoss Therapy Sessions Units Sold PriceVariable Costs Units Sold ...
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Accounting for Decision Making and Control
Authors: Jerold Zimmerman
8th edition
78025745, 978-0078025747
