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    Kfig's Avatar
    Kfig Posts: 1, Reputation: 1
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    #1

    May 8, 2008, 11:20 AM
    I have a quesiton about calculating BEP
    I have an houly visit price, and a variable cost for supplies per visit.

    In the problem I am working,

    If I need to double the hourly visit price becasuse Iam doubling staff,

    DO I need to double the variable cost per visit also?
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #2

    May 8, 2008, 12:20 PM
    There's no definitive answer to that. But one thing to consider is that doubling the staff will double salaries. (Assuming everyone makes the same amount.) But the variable cost of supplies is not salaries and not directly related to the amount of staff. However, it's logical to assume that more staff might also mean more supplies. There really isn't any way to know without knowing what the company is doing or why staff is being doubled.

    Doubling staff because business is doubling is an entirely different thing than doubling staff per visit. Why does staff need doubled per visit?

    If this is a homework problem, I would only make the changes they directly tell you to make, and anything that mathematically must change. (i.e. you change price, contribution margin must change because of the math involved. That is, you have to re-work all equations.) Unless you have a whole heck of a lot more detail than you've presented here that would give a better idea what is happening, I don't know how a problem can expect you to make those kind of assumptions. And there really wouldn't be any way for us to know either. Lack of detail makes it difficult to answer things.
    gilramirezgroup's Avatar
    gilramirezgroup Posts: 2, Reputation: 1
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    #3

    May 8, 2008, 01:17 PM
    Ok, I'm stuck on trying to post a long term liability. Which two accounts am I posting to?
    gilramirezgroup's Avatar
    gilramirezgroup Posts: 2, Reputation: 1
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    #4

    May 8, 2008, 01:20 PM
    Also, I've got two difference balance sheets that is out of balance by the same amount. How can I balance them.
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #5

    May 8, 2008, 03:11 PM
    gilramirezgroup, please start your own thread. Also, you need to provide more detailed information. We can't tell you what to do for a transaction involving a long-term liability without knowing what it is and what you are doing. Obviously the liability is involved, but in what way, and what else is involved we can't know. As for the balance, we also can't know why it's not balancing. There isn't some magic formula of what to do if they don't balance. You need to go back through everything and find what might be wrong -- that mistake could be anywhere and all anyone would be doing is guessing.

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