Tom Wagner and Jim Wilson are partners in an outdoor equipment store, Outer banks. The two partners
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Tom Wagner and Jim Wilson are partners in an outdoor equipment store, Outer banks. The two partners have been debating whether to keep the store open extra hours on Friday and Saturday. Jim has compiled the following cost data.
Tom and Jim do not anticipate hiring additional employees, but would instead ask current employees to work additional hours. No overtime work is expected as all employees currently work a maximum of 32 hours per week.
Transcribed Image Text:
Manager salary $45,000 per year Assistant manager salary (expected to work extra hours) $23,000 per year Store utilities $900 per month (on average) After hours security (9 P.M. to 8 A.M.) $10 per hour Store rent $3,500 per month Shopping center assessment (based on square footage) $12,000 per year Sales associates' wages $8.50 per hour
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According to the above data it is clear that some costs are fixed and will remain the same whereas o...View the full answer
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Managerial Accounting A Focus on Ethical Decision Making
ISBN: 978-0324663853
5th edition
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