Top Posters
Since Sunday
Home Q & A Board Other Fields Homework Help Business Economics
New Topic  
StormLrd StormLrd
wrote...
Go to Answer
Posts: 1017
Rep: 0 0
6 years ago
Bonnie and Clyde started the BC Restaurant a few years ago. They rented a building, bought equipment, and hired two employees to work full time at a fixed monthly salary. Utilities and other operating charges remain fairly constant during each month.
During the past two years the business has grown with average sales increasing one percent a month. This situation pleases both Bonnie and Clyde, but they do not understand how sales can grow by one percent a month while profits are increasing at an even faster pace. They are afraid that one day they will wake up to increasing sales but decreasing profits.

Required:
Explain why the profits have increased at a faster rate than sales.
Textbook 
Cost Accounting: A Managerial Emphasis, Canadian Edition

Cost Accounting: A Managerial Emphasis, Canadian Edition


Edition: 7th
Authors:
Read 107 times
1 Reply
Replies
Answer verified by a subject expert
GarretAGarretA
wrote...
#1
Top Poster
Posts: 669
Rep: 22 0
6 years ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
1
Without mathematics, there's nothing you can do. Everything around you is mathematics. Everything around you is numbers.

Related Topics

StormLrd Author
wrote...

6 years ago
This site is awesome
Harvinder
wrote...

Yesterday
This calls for a celebration Person Raising Both Hands in Celebration
my life
wrote...

2 hours ago
Smart ... Thanks!
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  1268 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Related Images
  
 173
  
 1466
  
 382
Your Opinion
Which is the best fuel for late night cramming?
Votes: 145
Previous poll results: Who will win the 2024 president election?