You are the founder and CEO of Home Water Designs, Inc., a company that custom designs and builds expensive residential pools. Y
1 answer:
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Answer:
The answer is "$7,630".
Explanation:
If we take into account that there are four weeks in a month, then
Joe's earnings can be calculated as:
=
= ($)
Zola's earnings can be calculated as:
=
=
= ($)
Thus,
The total gross monthly income would be:
=
=
= ($)
Solution
1.Hotel’s cost structure Indications in percentage(%)
Revenue $ 2,000,000 (100)
Less: Variable expenses $ 1,300,000 65
--------------------
Contribution margin $700,000
Less: Fixed expenses $560,000 28
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Net income $140,000 7
2.Revenue declines by 30 percent
Revenue $ 1,400,000
Less: Variable expenses $910,000
---------------------
Contribution margin $490,000
Less: Fixed expenses $392,000
---------------------
Net income $98,000
3.Operating leverage factor when revenue is $2,000,000
Operating leverage = Contribution/ Net income
4.Operating leverage factor when increase in revenue by 25 percent
increase in revenue by 25 percent=
increase in contribution by 25 percent=
increase in net income by 25 percent =
Operating leverage = Contribution/ Net income