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What is the expected monthly operating income if 184 customers are added? Operating income $ 1 (c) Mr. Oriole is exploring options to reduce the
What is the expected monthly operating income if 184 customers are added? Operating income $ 1 (c) Mr. Oriole is exploring options to reduce the annual bookkeeping costs. Option 1: Renegotiate the current contract with the bookkeeping service to pay a flat fee of $10.356 per year plus $1 per customer per month. Option 2: Hire a part-time bookkeeper for $18,416 per year to handle the invoicing and simple accounting. He would need to pay $6,300 per year to have taxes and year-end financial statements prepared. Compare the current bookkeeping cost with the two options at customer levels of 888, 1,637, and 1,698. 888 1,637 1,698 $ $ Current cost $ $ $ Option 1 $ $ $ Option 2 In response to a growing awareness of gluten allergies, Carla Vista Bakery tried using gluten-free flour in its three most popular cookies. After several attempts and a lot of inedible cookies, the company perfected new recipes that yield delicious gluten-free cookies. The costs of producing a batch of 100 cookies are as follows: Chocolate Chip Oatmeal Raisin Sugar Sales price $130 $118 $125 Variable cost $75 $69 $72 Fixed cost 16 15 21 Total cost 91 84 93 Gross profit $39 $34 $32 Pounds of flour 2.5 2.5 2. What is the expected monthly operating income if 184 customers are added? Operating income $ 1 (c) Mr. Oriole is exploring options to reduce the annual bookkeeping costs. Option 1: Renegotiate the current contract with the bookkeeping service to pay a flat fee of $10.356 per year plus $1 per customer per month. Option 2: Hire a part-time bookkeeper for $18,416 per year to handle the invoicing and simple accounting. He would need to pay $6,300 per year to have taxes and year-end financial statements prepared. Compare the current bookkeeping cost with the two options at customer levels of 888, 1,637, and 1,698. 888 1,637 1,698 $ $ Current cost $ $ $ Option 1 $ $ $ Option 2 In response to a growing awareness of gluten allergies, Carla Vista Bakery tried using gluten-free flour in its three most popular cookies. After several attempts and a lot of inedible cookies, the company perfected new recipes that yield delicious gluten-free cookies. The costs of producing a batch of 100 cookies are as follows: Chocolate Chip Oatmeal Raisin Sugar Sales price $130 $118 $125 Variable cost $75 $69 $72 Fixed cost 16 15 21 Total cost 91 84 93 Gross profit $39 $34 $32 Pounds of flour 2.5 2.5 2
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