Garrison Boutique, a small novelty store, just spent $4,000 on a new software program that will...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Garrison Boutique, a small novelty store, just spent $4,000 on a new software program that will help in organizing its inventory. Due to the steep learning curve required to use the new software, Garrison must decide between hiring two part-time college students or one full-time employee. Each college student would work 20 hours per week and would earn S15 per hour. The full-time employee would work 40 hours per week and would earn $15 per hour plus the equivalent of $2 per hour in benefits. Employees are given two polo shirts to wear as their uniform. The polo-shirts cost Garrison $10 each. What are the relevant costs, relevant revenues, sunk costs, and opportunity costs for Garrison? Garrison Boutique, a small novelty store, just spent $4,000 on a new software program that will help in organizing its inventory. Due to the steep learning curve required to use the new software, Garrison must decide between hiring two part-time college students or one full-time employee. Each college student would work 20 hours per week and would earn S15 per hour. The full-time employee would work 40 hours per week and would earn $15 per hour plus the equivalent of $2 per hour in benefits. Employees are given two polo shirts to wear as their uniform. The polo-shirts cost Garrison $10 each. What are the relevant costs, relevant revenues, sunk costs, and opportunity costs for Garrison?
Expert Answer:
Answer rating: 100% (QA)
Relevant costs Relevant cost is the cost of employees The differential cost is relevant cost Uniform ... View the full answer
Posted Date:
Students also viewed these accounting questions
-
A student spends 20 hours per week in classroom lecture time, 45 hours per week in individual study time, and 5 hours per week travelling to and from school. What is the ratio that exists between the...
-
Select the option that will help in reducing the wastage in terms of excess movement? a) Inventory waste management b) Just in time manufacturing c) 5S d) None of the above
-
What effect do sunk costs and opportunity costs have on a projects incremental cash flows?
-
In Exercises, find the limit. lim (4x- x 16x - x
-
Explain the difference between a direct cost and an indirect cost. Take a look at your purse or wallet. Name two direct costs of making your purse or wallet. Name two indirect costs of making it.
-
What are the basic assumptions of the Bohr model? Describe how the Bohr model accounts for the production of emission-line spectra from elements like hydrogen.
-
Gardner (1990) identified the following tasks that leaders perform: A. Representing the group by speaking on its behalf. B. serving as a symbol by acting in ways that convey the values of the group...
-
Doan Company requested that you (1) Assign indirect expenses to its jewelry and shoes departments as appropriate (2) Prepare an income statement for July 201X showing departmental contribution margin...
-
A municipal bond has 6 years until maturity and sells for $4,021. If the coupon rate on the bond is 5.27 percent, what is the yield to maturity? (Round your answer to 2 decimal places. Omit the "%"...
-
For the preceding problem you should find that there are significant differences among the three treatments. One reason for the significance is that the sample variances are relatively small. To...
-
Most colleges require students to supply scores fromeither the ACT or SAT test for admission purposes. Research hasshown that scores on these tests follow normal distributions.Suppose the mean ACT...
-
1.How would a company's cost of capital calculated from book values be affected if the company's bonds were selling for more than face value? 4.Assume the issuer incurs $1 million in other expenses...
-
Solve the system 312 I1 -I1 + 12 12 - 5 + 5x3 = 2 13 = 0 ++
-
There are two tasks in portfolio choice problem: (i) determination of the optimal risky portfolio and (ii) capital allocation. These two tasks are independent, or one is separate from the other....
-
Provide a description of the traditional views on the role of a manager that were prevalent over the last 30 years. What do managers do? What is their primary purpose? What changes are emerging?
-
The corporate Treasurer for a global technology company is comparing the returns offered by U.S. Treasury bills with the returns for risk-free securities issued by the government of Romania. Both...
-
Needs Analysis On a Saturday night in the fall of 2015, a woman was attending a charity event at a golf and country club in Toronto along with her baby and partner. During the din...
-
Hardin Services Co. experienced the following events in 2016: 1. Provided services on account. 2. Collected cash for accounts receivable. 3. Attempted to collect an account and, when unsuccessful,...
-
Although the largest errors in calculating the height of a packed column are errors in (1) mass transfer coefficients and (2) VLE data, calculation errors can also be significant because calculation...
-
Errors in mass transfer coefficients obviously affect the value of \(\mathrm{H}_{\mathrm{G}}\) and hence the height of the packed section. These errors also affect calculation of...
-
For extraction of benzoic acid from water into toluene with toluene the dispersed phase, we measure the following mole fractions of benzoic acid: \(\mathrm{x}_{\mathrm{D}, \text { in }}=0,...
Study smarter with the SolutionInn App