• 100% Satisfaction Guarantee

Neo, Bachelor's Degree
Category: Multiple Problems
Satisfied Customers: 12101
Experience:  BS Accounting
4224391
Type Your Multiple Problems Question Here...
Neo is online now

# Problem 1 - Handy-Man Services is a repair-service company

### Resolved Question:

Problem 1 - Handy-Man Services is a repair-service company specializing in small household jobs. Each client pays a fixed monthly service fee based on the number of rooms in the house. Records are kept on the time and material costs used for each repair. The following profitability data apply to five customers.

Customer Revenues Customer Costs

Marveline Burnett \$300 \$225

J Jackson 200 305

XXXXX XXXXX 80 75

Paul Saas 75 110

Becky Stephan 350 220

Question 1: Compute the operating income for each of the five customers.

Question 2: What options should Handy-Man Services consider in light of the customer-profitability results?

Question 3: What problems might Handy-Man Services encounter in accurately estimating the operating costs of each customer?

Problem 2 - Gavin and Alex, baseball consultants, are in need of a microcomputer network for their staff. They have received three proposals, with related facts as follows:

Proposal A
Proposal B
Proposal C

Initial investment in equipment
\$90,000
\$90,000
\$90,000

Annual cash increase in operations:

Year 1
80,000
45,000
90,000

Year 2
10,000
45,000
0

Year 3
45,000
45,000
0

Salvage value
0
0
0

Estimated life
3 yrs
3 yrs
1 yr

The company uses straight-line depreciation for all capital assets.

Question 1: Compute the payback period, net present value, and accrual accounting rate of return with initial investment, for each proposal. Use a required rate of return of 14%.

Question 2: Rank each proposal 1, 2, and 3 using each method separately. Which proposal is best? Why?
Submitted: 4 years ago.
Category: Multiple Problems
Expert:  Neo replied 4 years ago.
Good day!

Thank you so much! :)
Neo, Bachelor's Degree
Satisfied Customers: 12101
Experience: BS Accounting

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

### What Customers are Saying:

• Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
< Previous | Next >
• Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
• This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
• Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA
• I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin Kernersville, NC
• Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther Woodstock, NY
• Thank you so much for taking your time and knowledge to support my concerns. Not only did you answer my questions, you even took it a step further with replying with more pertinent information I needed to know. Robin Elkton, Maryland
• He answered my question promptly and gave me accurate, detailed information. If all of your experts are half as good, you have a great thing going here. Diane Dallas, TX

• ### linda_us

#### Satisfied Customers:

1401
A tutor for Business, Finance, Accounts and other related topics.
< Last | Next >

### linda_us

#### Satisfied Customers:

1401
A tutor for Business, Finance, Accounts and other related topics.

### F. Naz

#### Satisfied Customers:

1017
have completed B.Com and CA Finalist

### Mr. Gregory White

#### Satisfied Customers:

868
M.A., M.S. Education / Educational Administration

### Manal Elkhoshkhany

#### Satisfied Customers:

819
Completed by BA degree in 1988 and graduated with a GPA of 4.0

### Bizhelp

#### Satisfied Customers:

538
BA degree and Certified Public Accountant

155

39