Single and Dual Charging Rates Jeff McMillan owns a small neighborhood shopping mall. Of the 10 store spaces in the building, seven are rented by boutique owners and three are vacant. Jeff has decided that offering more services to stores in the mall would enable him to increase occupancy. He has decided to use one of the vacant spaces to provide, at cost, a gift-wrapping service to shops in the mall. The boutiques are enthusiastic about the new service. Most of them are staffed minimally, which means that every time they have to wrap a gift, phones go unanswered and other customers in line grow impatient. Jeff figured that the gift-wrapping service would incur the following costs: the store space would normally rent for $1,900 per month, part-time gift wrappers could be hired for $1,300 per month, and wrapping paper and ribbon would average $1.40 per gift. The boutique owners estimated the following number of gifts to be wrapped per month. Number of Gifts Store Wrapped per Month The Stationery Station 175 Arts & Collectibles 400 Kid-Sports 100 75 N Java Jim's 20 Designer Shoes 130 Cristina's Closet 100 Alan's Drug and Sundries After the service had been in effect for six months, Jeff calculated the following actual average monthly number of gifts wrapped for each of the stores. 7:57 PM 12/20/2021 Rh $ M ... After the service had been in effect for six months, Jeff calculated the following actual average monthly number of gifts wrapped for each of the stores. 2 Actual Average Number of Store Gifts Wrapped per Month The Stationery Station 160 Arts & Collectibles 420 Kid-Sports 240 Java Jim's 10 Designer Shoes 50 Cristina's Closet 200 450 Alan's Drug and Sundries Required: 1. Calculate a single charging rate, on a per-gift basis, to be charged to the shops. If required, round your final answer to the nearest w 1 cent. $ per gift Based on the shops' actual number of gifts wrapped, how much would be charged to each shop using the single charging rate? Total Charge Store $ The Stationery Station Eu 7:58 PM 12/20/2021 DEN w Store Total Charge The Stationery Station @ $ Arts & Collectibles Kid-Sports Java Jim's Designer Shoes Cristina's Closet Alan's Drug and Sundries 2. Based on the shops' actual number of gifts wrapped, how much would be charged to each shop using the dual charging rate? If required, round the allocation percentages to 4 decimal places and round your computed allocation amount to the nearest cent. Total Charge Store $ The Stationery Station Arts & Collectibles Kid-Sports Java Jim's Designer Shoes Cristina's Closet Alan's Drug and Sundries 7:58 PM 12/20/2021 Een DE Store progress=false Total Charge M The Stationery Station Arts & Collectibles Kid-Sports Java Jim's Designer Shoes ITE Cristina's Closet Alan's Drug and Sundries 3. Which shops would prefer the single charging rate? Why? a. The Stationery Station b. Arts & Collectibles c. Kid-Sports d. Java Jim's e. Designer Shoes f. Cristina's closet g. Alan's Drug and Sundries usage. The single charging rate assigns In the single rate method, fixed costs are included in the rate based on less of the fixed cost to the shops using of the service. 3. Which shops would prefer the single charging rate? Why? tion a, b and c a and d b, e and f Indries d, fand g w usa In the single rate method, fixed costs are included in the rate based on less of the fixed cost to the shops using of the service. e. Designer Shoes f. Cristina's Closet g. Alan's Drug and Sundries In the single rate method, fixed costs are included in the rate based on usage. The single charging rate assigns of the ser less of the fixed cost to the shops using actual estimated Previous Next 7:59 PM 43 tinas Closet g. Alan's Drug and Sundries less In the single rate method, fixed costs ar more based on usage. The single charging rate assigns of the service. less of the fixed cost to the shops using