Question: please answer the right way Jeff McMiltan owns a small neighborhood shopping mall. Of the 10 store spaces in the building, seven are rented by




Jeff McMiltan owns a small neighborhood shopping mall. Of the 10 store spaces in the building, seven are rented by boutique owners and three are vacant. Jeff has decided that offering more services to stores in the mall would enable him to increase occupancy. He has decided to use one of the vacant spaces to provide, at cost, a gift-wrapping service to shops in the mall. The boutiques are enthusiastic about the new service. Most of them are staffed minimally, which means that every time they have to wrap a gift, phones 90 unanswered and other customers in line grow impatient. Jeff figured that the gift-wrapping service would incur the following costs: the store space would normally rent for $1,900 per month, part-time gift wrappers could be hired for $1,300 per month, and wrapping paper and ribbon would average $1.40 per gift. The boutique owners estimated the following number of gifts to be wrapped per month. After the service had been in effect for six months, Jeff calculated the following actual average monthly number of gifts wrapped for each of the stores. Actual Average Number of Store Gifts Wrapped per Month \begin{tabular}{ll} \hline The Stationery Station & 160 \\ Arts 8 Collectibles & 420 \\ Kid-Sports & 240 \\ Java Jim's & 10 \\ Designer Shoes & 50 \\ Cristina's Closet & 200 \\ Alan's Drug and Sundries & 450 \end{tabular} Required: 1. Calculate a single charging rate, on a per-gif basis, to be charged to the shops. If required, round your final answer to the nearest cent. x per gift Based on the shops' actual number of gifts wrapped, how much would be charged to each shop using the single charging rate? 2. Based on the shops' actual number of gifts wrapped, how much would be charged to each shop using the dual charging rate? If required, round then allocation percentapes to 4 decimal pleces and round your computed allocation amount to the nearest cent. In the single rate method, fixed costs are included in the rate based on x usage, The single charging rake assigns less of the fiad cast to the ahoes using x of the service. Fantion 1. The expected (biegeted) cost includes fixed costs plus vanable costs. Total costs are a key component to determining the singiv charying cath. from being infiuenced by the quantity af service consumed by other users: 3. Consider how much usege and what difference this would make. Explain, Needs Intructor Grading
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