HomeHomework HelpTextbooksTest PrepTextbook Answers
Zookal Homework Help

Homework Help

  1. Business
  2. Accounting
  3. cia review inc provides review courses twice each year for...

Question: cia review inc provides review courses twice each year for...

Question details

CIA Review, Inc. provides review courses twice each year for students studying to take the CIA exam. The cost of textbooks i:s included in the registration fee. Text material requires constant updating and is useful for only one course. To minimize printing costs and ensure availability of books on the first day of class, CIA Review has books printed and delivered to its offices two weeks in advance of the first class. To ensure that enough books are available, CIA Review normally orders 10 percent more than expected nrollment. Usually there is an oversupply and books are thrown away. However, demand occasionally exceeds expectations by more than 10 percent and there are too few books available for student use. CIA Review has been forced to turn away students because of a lack of textbooks. CIA Review expects to enroll approximately 200 students per course. The tuition fee is $2,000 per student. The cost of teachers is $50,000 per course, textbooks cost $150 each, and other operating expenses are estimated to be $75,000 per course. Assume all financial statements data are prepared in accordance with GAAP Required a. Prepare an income statement, assuming that 200 students enroll in a course. Determine the cost of waste associated with b-1. Prepare an income statement, assuming that 240 students attempt to enroll in the course, but 20 students are turned away b-2. Prepare an income statement, assuming that 240 students attempt to enroll in the course, with all being accepted. unused books because of too few textbooks b-3. Determine the amount of lost profit resulting from the inability to serve the twenty additional students. C. Suppose that textbooks can be produced through a high-speed copying process that permits delivery just in time for class to start. The cost of books made using this process, however, is $160 each. Assume that all books must be made using the same production process. In other words, CIA Review cannot order some of the books using the regular copy process and the rest using the high-speed process. Prepare an income statement under the JIT system assuming that 200 students enroll in a course d-1. Assume the same facts as in Requirement c with respect to a JIT system that enables immediate delivery of books at a cost of $160 each. Prepare an income statement under the JIT system, assuming that 240 students enroll in a course. d-2. Which system results in higher income?Complete this question by entering your answer in the tabs below Require.Required B1 Required B2Required B3Required CRequired DI Required D2 Prepare an income statement, assuming that 200 students enroll in a course. Determine the cost of waste associated with unused books CIA REVIEW, INC Income Statement Expenses Total expenses Cost of waste associated with unused books Required A Required B1Complete this question by entering your answer in the tabs below. Require...Required B1 Required B2Required B3 Required C Required D Required D2 Prepare an income statement, assuming that 240 students attempt to enroll in the course, but twenty students are turned away because of too few textbooks CIA REVIEW, INC. Income Statement Expenses Total expenses Required A Required B2 >Complete this question by entering your answer in the tabs below Require....Required BRequired B2 Required B3 Required CRequired D Reuired D2 Prepare an income statement, assuming that 240 students attempt to enroll in the course, with all being accepted CIA REVIEW, INC Income Statement Expenses Total expenses Required B1 Required B3Complete this question by entering your answer in the tabs below. Require...Required B1 Required B2 Required B3 Required CRequired DlRequired D2 Determine the amount of lost profit resulting from the inability to serve the twenty additional students Lost profit from not serving additional students K Required B2 Required CComplete this question by entering your answer in the tabs below Require Required BI Required B2 Required B3 Required C: Required DI Required D2 Suppose that textbooks can be produced through a high-speed copying process that permits delivery just in time for class to start. The cost of books made using this process, however, is S160 each. Assume that all books must be made using the same production process. In other words, CIA Review cannot order some of the books using the regular copy process and the rest using the high-speed process. Prepare an income statement under the JIT system assuming that 200 students enroll in a course Show less CIA REVIEW, INC Income Statement Expenses Total expenses Reuired R3Complete this question by entering your answer in the tabs below. Required B1 Required B2 Required B3 Required CRequired D1Required D2 Assume the same facts as in Requirement c with respect to a JIT system that enables immediate delivery of books at a cost of $160 each. Prepare an income statement under the JIT system, assuming that 240 students enroll in a course CIA REVIEWS, INC. Income Statement Expenses Total expenses 〈 Required C Required D2>Complete this question by entering your answer in the tabs below. Require Required Bi Required B2 Required B3 Required C Required D1, Required D2 Which system results in higher income? K Required D1 Required D2

Solution by an expert tutor
Blurred Solution
This question has been solved
Subscribe to see this solution