Happy Nails is a locally owned nail salon that is in its first year of business....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Happy Nails is a locally owned nail salon that is in its first year of business. The nail salon employs 8 ral technicians that are paid $31,250 each and the owner's is paid $75,000. H the owner did not own Happy Nals, she would work for a competitor for $85,000. At the beginning of the year, the building and the salon equipment are worth $100.000 and at the end of the year, they are worth $85,000. The accountant for Happy Nails uses straight-line depreciation for the 15-year life of the building and salon equipment. The table above provides some additional infomation on revenue and the opportunity cost of using the building and equipment. Profit Using Accounting Costs Profit Using Opportunity Costs $700,000 Total Revenue Cost Nail technicians Owner's Time Total Revenue Cost Nail technicians Owner's Salary Depreciation Allowance $700,000 A B. Cost of using building and $25,000 equipment opportunity cost) Total Cost Total Profit Total Cost Total Profit Refer to the table above. What is the value of A? O 331,250 O S312.500 O $260.000 O S02.500 Happy Nails is a locally owned nail salon that is in its first year of business. The nail salon employs 8 ral technicians that are paid $31,250 each and the owner's is paid $75,000. H the owner did not own Happy Nals, she would work for a competitor for $85,000. At the beginning of the year, the building and the salon equipment are worth $100.000 and at the end of the year, they are worth $85,000. The accountant for Happy Nails uses straight-line depreciation for the 15-year life of the building and salon equipment. The table above provides some additional infomation on revenue and the opportunity cost of using the building and equipment. Profit Using Accounting Costs Profit Using Opportunity Costs $700,000 Total Revenue Cost Nail technicians Owner's Time Total Revenue Cost Nail technicians Owner's Salary Depreciation Allowance $700,000 A B. Cost of using building and $25,000 equipment opportunity cost) Total Cost Total Profit Total Cost Total Profit Refer to the table above. What is the value of A? O 331,250 O S312.500 O $260.000 O S02.500
Expert Answer:
Related Book For
Financial Accounting Tools for business decision making
ISBN: 978-0470534779
6th Edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
Posted Date:
Students also viewed these mathematics questions
-
In its first year of operations, Lazirko Company earned $28,000 in service revenue, $6,000 of which was on account and still outstanding at year-end. The remaining $22,000 was received in cash from...
-
In its first year of operations, Queenan Company earned $30,000 in service revenue, $8,000 of which was on account and still outstanding at year-end. The remaining $22,000 was received in cash from...
-
In its first year of operations, Anya Company recognized $30,000 in service revenue, $4,800 of which was on account and still outstanding at year-end. The remaining $25,200 was received in cash from...
-
On November 1, 2021, Sadie's borrows $230,000 from a local bank and signs a note. The note requires interest to be paid annually beginning on August 1, 2022 at 12%. Principal and interest are due in...
-
How do negotiation systems and countertrade arrangement affect business-to-business pricing programs?
-
Over the past four decades, SIA has earned a stellar reputation in the fiercely competitive commercial aviation business by providing customers with high-quality service and dominating the business...
-
Find out what CFD software packages your college or university has. How many "seats" of each? How much does your institution spend annually on CFD software?
-
On February 1, 2007 Edwards Corporation purchased a parcel of land as a factory site for $50,000. It demolished an old building on the property, and began construction on a new building that was...
-
Arvin, Inc., produces two products, ins and outs, in a single process. The joint costs of this process were $77,300, and 14,000 units of ins and 36,000 units of outs were produced. Separable...
-
Margie Company needs your help to record and summarize its accounting transactions for 2021 and to prepare its financial statements for that year. Margie Company provided you with the following...
-
Rewrite the following code using while statement. #include using namespace std; int main() { } int i, x, sum=0; for(i=0; i <8; i++){ cin>>x; sum = sum+x; } cout <
-
Paymore Products places orders for goods equal to 75% of its sales forecast in the next quarter which has been provided in the table below. Sales forecast Quarter in Coming Year First $492 Second...
-
Bench Industries manufactures large workbenches for industrial use. Recent market analysis indicates that sales are declining for Bench's product because of aggressive competitor pricing. Bench's...
-
Wilmington Company has two manufacturing departments Assembly and Fabrication. It considers all of its manufacturing overhead costs to be fixed costs. The first set of data that is shown below is...
-
Pink House Ltd. sells plastic pink flamingos. The following operating expenses were provided for the month of April 2020: Sales salaries $25,000 Advertising 3% of monthly sales Sales commissions 2.5%...
-
Holton Company makes three products in a single facility. Data concerning these products follow: Product A B C Selling price per unit $ 9 6 . 2 0 $ 7 8 . 0 0 $ 8 6 . 4 0 Direct materials $ 4 1 . 9 0...
-
What would the mystery charge labeled "?" have to be for this object to have a net electric charge of 0? Note for advanced students: you can assume charge is measured in any convenient units, e.g....
-
Representative data read from a plot that appeared in the paper Effect of Cattle Treading on Erosion from Hill Pasture: Modeling Concepts and Analysis of Rainfall Simulator Data (Australian Journal...
-
The cash records of Arora Company show the following. For July: 1. The June 30 bank reconciliation indicated that deposits in transit total $580. During July, the general ledger account Cash shows...
-
Alternative Distributor Corp., a distributor of groceries and related products, is headquartered in Medford, Massachusetts. During a recent audit, Alternative Distributor Corp. was advised that...
-
(a) Explain the income measurement process in a merchandising company. (b) How does income measurement differ between a merchandising company and a service company?
-
Recently Sparrow Ltd experienced temporary closure that affected a number of its operating plants. The group accountant of Sparrow Ltd indicated that it was not appropriate to report depreciation...
-
Parakeet Ltd has recently acquired a machine for an invoice price of \(\$ 70 \mathbf{0 0 0}\). Various other costs relating to the acquisition and installation of the machine include transportation,...
-
Seagull Ltd purchased land for use as its corporate headquarters. A small factory that was on the land when it was purchased was torn down before construction of the office building began....
Study smarter with the SolutionInn App