Marcotte and Company organizes seminars and other events for companies and professional associations. Until recently, the firm
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a. When he only offered large seminars, Milt determined the price to charge the conference organizers by computing a cost per participant and adding a 40% markup.
He continued this scheme even after he included small seminars to the product line. Under this scheme, determine the price per the average large seminar and the average small seminar.
b. One of the seminars Milt organized concerned activity-based costing. Milt caught fragments of the talk and wonders if the lessons apply to him. As a preliminary cut, he figures that costs per participant (doing mailings, preparing nametags, etc.) cost $225,000 per year. The remainder of $84,000 per year relates to coordinating with the hotel and caterers, organizing AV equipment, hanging banners, and so on. Using activity-based costing, determine the price per large seminar and the average small seminar.
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Related Book For
Managerial accounting
ISBN: 978-0471467854
1st edition
Authors: ramji balakrishnan, k. s i varamakrishnan, Geoffrey b. sprin
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