Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Stevie McQueen has run Zippy Car Detailing for the past 10 years. His static budget and actual results for June 2021 are provided next. Stevie
Stevie McQueen has run Zippy Car Detailing for the past 10 years. His static budget and actual results for June 2021 are provided next. Stevie has one employee who has been with him for all 10 years that he has been in business. In addition, at any given time he also employs two other less experienced workers. It usually takes each employee 2 hours to detail a vehicle, regardless of his or her experience. Stevie pays his experienced employee $30 per vehicle and the other two employees $15 per vehicle. These piece rates were constant when the budget was formed and remained the same throughout the month of June. Zippy Car Detailing Actual and Budgeted Income Statements for the Month Ended June 30, 2021 Budget Actual Cars Detailed 240 280 Revenue $40,800 $54,600 Variable costs Costs of supplies 1,320 2,120 Labor 5,760 6,750 Total variable costs 7,080 8,870 Contribution margin 33,720 45,730 Fixed costs 9,700 9.700 Operating Income $24,020 $36,030 Question 7: How many cars did Stevie budget for each part time employee to detail? Do not assume that every employee was budgeted to detail the same number of cars. That is, the correct answer is NOT 80 cars. (Put differently, do not assume the number of cars budgeted to be detailed by each part time employee is the same as the number of cars budgeted to be detailed by the one full time employee.) But you may assume that each of the two part time employees was budgeted to detail the same number of cars. Group of answer choices a. Each part time employee was to budgeted to detail 85 cars b. Each part time employee was to budgeted to detail 48 cars c. Each part time employee was to budgeted to detail 95 cars Q d. Each part time employee was to budgeted to detail 94 cars Question 8: How many cars did each part time employee actually detail? Do not assume that each employee actually detailed the same total number of cars, but you may assume that each of the two part time employees did detail the same number of cars Group of answer choices a. Each part time employee actually detailed 85 cars b. Each part time employee actually detailed 75 cars c. Each part time employee actually detailed 65 cars d. Each part time employee actually detailed 55 cars
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started