You have been doing a good business at your auto service & repair shop, Business is brisk! You have decided that, rather than just blowing your profits on a big party, to invest in a way to grow your business and - you hope -- bring in even more profits later. You have been working 50 hours per week at the shop but haven't taken any pay yet. You have money left to divide between your wage, and money to invest in growing your business. The more wages you pay yourself the less you will have to invest in your shop. > Weekly, you have been selling 30 brake replacements ($300 each), and 100 oil changes ($80 each). > Labor costs, have been about $4,400 per week: Technicians: $1,200 each Porter: $620 Service Writer: $800 Cashier: $580 > Supplies & parts cost you $3,400 per week > Rent & utilities for your shop is $5,000 per week > Insurance is $1,200 per week Show your work & circle your answer: 6. Calculate your total weekly revenue. 7. Calculate your weekly profit. 8. Determine your own weekly salary (This must come out of your answer to #7)? 9. Calculate your own hourly wage (based on your answer in #8). 10. Identify how much money is left for investment in capital goods? 11. Describe how division-of-labor exists in your shop.
You have been doing a good business at your auto service & repair shop, Business is brisk! You have decided that, rather than just blowing your profits on a big party, to invest in a way to grow your business and - you hope -- bring in even more profits later. You have been working 50 hours per week at the shop but haven't taken any pay yet. You have money left to divide between your wage, and money to invest in growing your business. The more wages you pay yourself the less you will have to invest in your shop. > Weekly, you have been selling 30 brake replacements ($300 each), and 100 oil changes ($80 each). > Labor costs, have been about $4,400 per week: Technicians: $1,200 each Porter: $620 Service Writer: $800 Cashier: $580 > Supplies & parts cost you $3,400 per week > Rent & utilities for your shop is $5,000 per week > Insurance is $1,200 per week Show your work & circle your answer: 6. Calculate your total weekly revenue. 7. Calculate your weekly profit. 8. Determine your own weekly salary (This must come out of your answer to #7)? 9. Calculate your own hourly wage (based on your answer in #8). 10. Identify how much money is left for investment in capital goods? 11. Describe how division-of-labor exists in your shop.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:You have been doing a good business at your auto service & repair shop. Business is brisk! You have decided that, rather
than just blowing your profits on a big party, to invest in a way to grow your business and - you hope -- bring in even
more profits later. You have been working 50 hours per week at the shop but haven't taken any pay yet. You have money
left to divide between your wage, and money to invest in growing your business. The more wages you pay yourself the
less you will have to invest in your shop.
> Weekly, you have been selling 30 brake replacements ($300 each), and 100 oil changes ($80 each).
> Labor costs, have been about $4,400 per week:
Technicians: $1,200 each
Porter: $620
Service Writer: $800
Cashier: $580
> Supplies & parts cost you $3,400 per week
> Rent & utilities for your shop is $5,000 per week
> Insurance is $1,200 per week
Show your work & circle your answer:
6. Calculate your total weekly revenue.
7. Calculate your weekly profit.
8. Determine your own weekly salary (This must come out of your answer to #7)?
9. Calculate your own hourly wage (based on your answer in #8).
10. Identify how much money is left for investment in capital goods?
11. Describe how division-of-labor exists in your shop.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education