EXERCISE 9–1 Prepare a Flexible Budget LO9–1

Puget Sound Divers is a company that provides diving services such as underwater ship repairs to clients in the Puget Sound area. The company’s planning budget for May appears below:

Puget Sound Divers Planning Budget for the Month Ended May 31

Budgeted diving-hours (q) : 100

Revenue ($365.00q) : $36,500

Expenses:

Wages and salaries ($8,000 + $125.00q) : 20,500

Supplies ($3.00q) : 300

Equipment rental ($1,800 + $32.00q) : 5,000

Insurance ($3,400) : 3,400

Miscellaneous ($630 + $1.80q) : 810

Total expense : 30,010

Net operating income : $ 6,490

During May, the company’s actual activity was 105 diving-hours.

Required: show all the work process

Using Exhibit 9–5 as your guide, prepare a flexible budget for May.

Captain john's yachts, inc., located in fort lauderdale, florida, rents three types of ocean-going boats: sailboats, cabin cruisers, and captain john's favorite, the luxury yachts. captain john advertises his boats with his famous "you rent"we pilot" slogan, which means that the company supplies the captain and crew for each rented boat. each rented boat has one captain, of course, but the crew sizes (deck hands, galley hands, etc.) differ. the crew requirements, in addition to a captain, are one for sailboats, two for cabin cruisers, and three for yachts. ten employees are captains, and an additional 18 employees fill the various crew positions. currently, captain john has rental requests for all his boats: four sailboats, eight cabin cruisers, and three luxury yachts. if captain john's daily profit contribution is $50 for sailboats, $70 for cruisers, and $100 for luxury yachts, how many boats of each type should he rent?

An investment counselor calls with a hot stock tip. he believes that if the economy remains strong, the investment will result in a profit of $40 comma 00040,000. if the economy grows at a moderate pace, the investment will result in a profit of $10 comma 00010,000. however, if the economy goes into recession, the investment will result in a loss of $40 comma 00040,000. you contact an economist who believes there is a 2020% probability the economy will remain strong, a 7070% probability the economy will grow at a moderate pace, and a 1010% probability the economy will slip into recession. what is the expected profit from this investment?

What is an example of a good stock to buy in a recession? a) cyclical stock b) defensive stock c) income stock d) bond