Question 5

Chrome File Edit View History Bookmarks People Tab Window Help $ 1 99% & Wed 9:22 AM Q DE ... Bb Microsoft Word - ACCT 2031 T X Bb Microsoft Word - ACCT 2031 T X Bb Microsoft Word - ACCT 2031 T X Bb Microsoft Word - ACCT 2031 T X Content X + C Abb-gbc.blackboard.com/ultra/courses/_200035_1/cl/outline . .. Remaining Time: 2 hours, 55 minutes, 35 seconds. X * Question Completion Status: QUESTION 5 8 points Save Answer Calculation Question: 18 Alpine Bee Collector is a pest removal service run by Rick Ketchum. Rick specializes in catching and removing bees from peopleis attics and sheds and then sealing up the entry points to prevent the raccoons from getting back in. Each capture is a bit unique. It usually takes about two hours per call to catch the bees and seal the attic or shed. Rick is willing to work 6 days a week and 12 hours per day but he would also like to take 8 weeksi vacation each winter. There are also training seminars to attend, possible sick days, and slack time. He is only out on calls earning money half the time with the other half spent at his home office waiting for a customer to call him. Rickis van costs $13,000 per year including gas, insurance, leasing, and maintenance. Materials such as wood and wire cost $25 per call. Rick would like to make $70,000 per year. Required a) (4 marks) Calculate how many calls Rick will make each year. b) (4 marks) Based on your calculation of the number of calls, how much should Rick charge per call?(Note: Depending on how you answered part (a) your answer to (b) may not be a round number) X Formulas Target Profit = Units x (Unit Price n Unit Cost) n Fixed Cost = Units x Contribution Margin n Fixed Cost Production Plan: #Units = (Target Profit + Fixed Cost) ~ (Unit Price n Unit Cost) Contribution margin percentage = Contribution margin Sales revenue ? Click Save and Submit to save and submit. Click Save All Answers to save all answers. Save All Answers Save and Submit Priv FEB 3 Zalo W