You are the CPA for Vachon Stores. Read the following case and write a 1 to...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
You are the CPA for Vachon Stores. Read the following case and write a 1 to 2 page memo, answering the questions below in proper Business memo format. Delivery Costs Vachon Stores offers free delivery as a service to its customers. For years, a local delivery company has provided the service. Business has increased substantially and, on average, 300 deliveries per month are made. The delivery firm has just increased its charges to $20 for every delivery. K. Vachon, the owner, has asked the store accountant to compare the pres- ent delivery charges with the cost of buying and operating the company's own van. The accountant has determined several facts: • A delivery van would cost $37 000. • The van would last four years and then would be worth $ 1o o00 as a trade-in. • The driver's salary would be about $27 per hour, including all fringe benefits; the driver would work an average of 30 hours per week. • Insurance, repairs and maintenance, licences, and fuel would average $8950 per year. A) Prepare a table that will clearly and effectively compare all of the costs of owning the Van versus using the services of the delivery firm. B) Describe other factors, other than cost, for owning the Van versus using the services of the delivery firm. C) In a concluding paragraph, provide your recommendation with at least 3 key reasons to defend you answer. You are the CPA for Vachon Stores. Read the following case and write a 1 to 2 page memo, answering the questions below in proper Business memo format. Delivery Costs Vachon Stores offers free delivery as a service to its customers. For years, a local delivery company has provided the service. Business has increased substantially and, on average, 300 deliveries per month are made. The delivery firm has just increased its charges to $20 for every delivery. K. Vachon, the owner, has asked the store accountant to compare the pres- ent delivery charges with the cost of buying and operating the company's own van. The accountant has determined several facts: • A delivery van would cost $37 000. • The van would last four years and then would be worth $ 1o o00 as a trade-in. • The driver's salary would be about $27 per hour, including all fringe benefits; the driver would work an average of 30 hours per week. • Insurance, repairs and maintenance, licences, and fuel would average $8950 per year. A) Prepare a table that will clearly and effectively compare all of the costs of owning the Van versus using the services of the delivery firm. B) Describe other factors, other than cost, for owning the Van versus using the services of the delivery firm. C) In a concluding paragraph, provide your recommendation with at least 3 key reasons to defend you answer.
Expert Answer:
Answer rating: 100% (QA)
A Comparative Statement showing Coat of delivey peu year Couto of ouning the Cooto of ... View the full answer
Related Book For
Business Law Principles and Practices
ISBN: 978-1133586562
9th edition
Authors: Arnold J. Goldman, William D. Sigismond
Posted Date:
Students also viewed these accounting questions
-
1. What were some of the concerns that provoked protest in the East and the West during the 1960s? How were they different or similar? 2. How did the welfare state transform people's lives in the...
-
You are the CPA for a large firm which is having a rough year and may not make analysts' forecasts. The firm is considering changing from LIFO to FIFO as that will increase income and may put them at...
-
Read Erin Andrews Privacy Invasion Case and write a paper on it.
-
A 1.0 m long metallic rod is rotated with an angular frequency of 400 rad s about an axis normal to the rod passing through its one end. The other end of the rod is in contact with a circular...
-
Black Company is making plans to finance the following projects: a. Purchase a boat for $50,000 to be repaid in equal monthly payments of $977.51 over the next six years. The bank has quoted an...
-
1. What are some basic purchasing guidelines that the Harrisons should consider when choosing which new car to buy or lease? How can they find the information they need? 2. How would you advise the...
-
What is a controlling resistance? How do you determine which resistance, if either, is controlling?
-
The following information applies to Bowling Green Metals Corporation for the year ended December 31, 2010: Total revenues from regular operations .............. $832,000 Total expenses from regular...
-
Use the following information to answer the next two problems. You are considering investing in a process that promises to save you $75 per year (Sales - Costs). The process has an expected life of 5...
-
What are the most significant differences between the AICPA and the PCAOB standard unmodified opinion audit reports?
-
4) Examine their investment portfolios (what each has in their RRSPs) and make some recommendations about the types of investments they have and the risks they need to be aware of. (6 marks)
-
Define and describe the pathophysiology and risk factors of Autism.
-
Critically explore the main feature and requirements of leadership development for competitive advantage of jack welch.
-
Forecasting, cashflow, and budget control 8. a) Explain the following forecasting techniques used in budgeting, financial and business performance. In your response include how the method is used and...
-
While on roller blades you find yourself at the top of "The Great Canadian Mine Buster". You have a mass of 75kg and you are now 56m above the ground. You start to go down the track. The first dip in...
-
A. List three traits from early leadership theory that all good leaders must have and explain why? Can these traits be learned? Why or why not? B. List three traits that you believe may not be...
-
Which of these is/are true about the Internet? O Adding more routers to the Internet makes it more reliable. O If communication with a website is secure (encrypted), then we can capture the...
-
Use nodal analysis to determine voltages v1, v2, and v3 in the circuit Fig. 3.76. Figure 3.76 4 S 3i, 2 A 4A
-
Ryburn and Zepeda, police officers, responded to a call from the principal at Jefferson High School in Burbank, California. The principal informed them that Vincent Huff, a student at the school was...
-
On November 15, the Bon Ton Corporation entered into a contract to purchase 100 leather chairs from Rudnick Manufacturing Company. Both companies are in the same city. Bon Ton prepaid 50 percent of...
-
Cinquanta needed repairs to a neon sign hanging in front of his restaurant. He asked Burdett to do the repairs. Upon completion, a disagreement occurred over payment of the cost of the repairs....
-
The accounting profession has been investigated by Congress over a number of years. However, none of the investigations or recommendations for change seems to have made a difference in that fraud...
-
The following two questions directly relate to ethics standards in the AICPA Code of Professional Conduct: a. Is it ever improper for a CPA/CPA firm to accept a commission from a client for...
-
Have you ever agreed to do something when you werent sure that you had the skills to accomplish the job? Why did you agree to do it? Can you draw an analogy between your motivations and the ethical...
Study smarter with the SolutionInn App