Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Training Co manages a group of personal trainers. The group currently has capacity to sell 3 2 0 , 1 - hr sessions per month

Training Co manages a group of personal trainers. The group currently has capacity to sell 320,1-hr sessions per month for $90.00 per session. The variable cost of each session is $40.00 per hour. Beyond these costs, the group also incurs $6,500 in corporate, administrative and marketing costs per month. The group currently has no spare capacity.
Training Co has been approached by a local sporting team who is wanting to secure the services of one of the firm's trainers over the next month. This will include 10,2-hr sessions and the sporting team is willing to pay $250.00 per session. In order to offer these sessions, Training Co will incur their standard session variable costs and will aslo need to spend $900.00 to purchase new equipment that will be used for sessions with the sporting team.
Required:
Evaluate and discuss whether if this proposal is acceptable. As part of your overall evaluation, consider both financial and non-finanancial factors.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Ray Garrison, Eric Noreen, Peter Brewer

16th edition

1259307417, 978-1260153132, 1260153134, 978-1259307416

More Books

Students also viewed these Accounting questions

Question

describe several successful positive work interventions.

Answered: 1 week ago