You are the proprietor of Brite Cleaners. The following data are extracted from your most recent...

  

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You are the proprietor of Brite Cleaners. The following data are extracted from your most recent income statement: Revenue: Cleaning $134 900 Storage 5 974 Tailoring 30 500 $171 374 Expense: Rent $4 800 Delivery 2 930 Wages 104 300 3 250 Supplies Used General Expense Depreciation 1 975 7 560 4 250 Power $129 065 $ 42 309 Net Income The employees have requested a 20 per cent increase in wages. Questions 1. Assuming that no other expense is affected, how much would the wage increase cost the company? 2. Can you grant this request and still make a profit, in light of the above statement? 3. How much would the net income be if the increase were granted? 4. You want to make at least $30 000 per year from the business, and you expect an increase of $5 000 in revenue for the coming year. Calculate the maximum increase that you can grant to your employees, expressed in dollars and as a per- centage. Assume that there is no increase in other expenses. You are the proprietor of Brite Cleaners. The following data are extracted from your most recent income statement: Revenue: Cleaning $134 900 Storage 5 974 Tailoring 30 500 $171 374 Expense: Rent $4 800 Delivery 2 930 Wages 104 300 3 250 Supplies Used General Expense Depreciation 1 975 7 560 4 250 Power $129 065 $ 42 309 Net Income The employees have requested a 20 per cent increase in wages. Questions 1. Assuming that no other expense is affected, how much would the wage increase cost the company? 2. Can you grant this request and still make a profit, in light of the above statement? 3. How much would the net income be if the increase were granted? 4. You want to make at least $30 000 per year from the business, and you expect an increase of $5 000 in revenue for the coming year. Calculate the maximum increase that you can grant to your employees, expressed in dollars and as a per- centage. Assume that there is no increase in other expenses.

Answer rating: 100% (QA)

1 The wages increase by 104300 X 20 20860 The Cost of the company increase b... View the full answer