SHARE is trying to determine how many clients must be serviced in order to cover its monthly service overhead. Using the high-low method, it has determined that the variable cost per client is $800 and that the monthly fixed overhead is $28,000. Assuming an average fee of $1,400 per client and a targeted profit of $26,000, the number of clients to be serviced is
a. 80 clients.
b. 120 clients.
c. 47 clients.
d. 90 clients.
D
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Impulse products are products that are purchased without prior plans, like fragrances and cosmetics in department stores and magazines in supermarkets.
Answer the following statement true (T) or false (F)
Which of the following is/are true?
a. A derivative is a financial instrument whose value changes in response to changes in an underlying observable variable, such as a stock price, an interest rate, a currency exchange rate, or a commodity price. b. Unlike equity securities, which have no definite settlement date, firms settle a derivative at a date that the terms of the instrument specify. c. A derivative requires an investment that is small, relative to the investment in a contract that is similarly exposed to changes in market factors, or requires no investment at all. d. Firms use derivative instruments to hedge the risks that arise from changes in interest rates, foreign exchange rates, and commodity prices. e. all of the above
The following information is available about the status and operations for Division B of Boxwood Company, which has a minimum required ROI of 20%. Answer each item independently of the others. Division BDivisional investment$1,500,000 Divisional profit$550,000 Divisional sales$3,600,000 Required:a. Compute the ROI for Division B.b. Division B could increase its profit by $25,000 by increasing its investment by $100,000. Compute its new ROI.c. Division B could increase its profit margin ratio by one percentage point (for example: from 13% to 14%), without increasing total sales or investment. Compute its new ROI.d. Division B could reduce its investment so that its asset turnover increased by one time, while holding total sales and profit constant. Compute its new ROI.
What will be an ideal response?
The Economic Espionage Act
A. makes the theft of trade secrets by foreign entities a federal crime in the U.S. B. allows the World Court in The Hague to adjudicate trade disputes on behalf of United Nations' members and requires the home country to impose any penalties. C. targets espionage activities that are commonplace in any industry that holds governmental contracts. D. is well-intended in theory, but is virtually impossible to enforce. E. imposes a personal fine on a convicted U.S. citizen of up to $10 million.