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John Moffat.
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xyzc
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Bridgewater Co (6/08) amended
For part b) of this question, I don’t understand how the trainer costs, room hire costs and staff training costs been calculated, and apportioned.
Also how the voucher sales, and the other type of sales been calculated and apportioned.
Should the cost of demonstration program be included in other costs, or should it be shown separately.
John Moffat
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The vouchers sales are 80 x $125 = $10,000, which is 10,000/4 = $2,500 per quarter.
The question specifically says that staff training costs $500 in each of quarters 1 and 2 (but not in quarters 3 and 4).
There will be extra sales of 20% and therefore 20% extra customers in quarters 3 and 4. They want to run those courses using the same tutorial and room standards so the trainer costs and room hire costs both need to be increased by 20%.
The demonstration program is shown separately in the workings as you can see from the answer (the answers labels it as software).
xyzc
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