Estimate commission revenues for stubs-r-us for coming year

Assignment Help Financial Accounting

Reference no: EM131264837

Stubs-R-Us is a local event ticket broker. Last year, the company sold 900,000 tickets with an average commission of $5. Because of the general economic climate, Stubs expects ticket volume to decline by 20 percent. In addition, employees at a local insurance company headquarters accounted for 5 percent of Stubs’ volume. The headquarters relocated to another state and all the employees closed their accounts.

Offsetting these factors is the observation that the average commission per sale is likely to increase by 10 percent because the average ticket prices are expected to be larger in the coming year.

Required:

Estimate commission revenues for Stubs-R-Us for the coming year.

Reference no: EM131264837

Questions Cloud

Inconsistent with the current definition of liabilities : The FASB decided in SFAS No.150 that mandatorily redeemable preferred stock should be, in general, classified as debt, even if the firm will issue its own equity shares in settlement. How is this inconsistent with the current definition of liabilitie..

What is their net income : The brown construction company has EBIT of $5,000,000. The company's depreciation expense is $100,000 and has a tax rate of 30%. The company pays an interest of$3,000,000. What is their net income ? Please create income statement

How much in dividends did firm pay : On 12/31/08, hire industries retain earning of $ 525,000 on its balance sheet, and it reported that it had $135,000 of net income during the year. On its pervious balance sheet at 12/31/07, the company had reported $445,000 of retained earning. No sh..

Part of the acquisition cost of self-constructed assets : What are some criticisms of capitalizing interest costs on borrowed funds per SFAS No. 34 as part of the acquisition cost of self-constructed assets in light of the conceptual framework?

Estimate commission revenues for stubs-r-us for coming year : Stubs-R-Us is a local event ticket broker. Last year, the company sold 900,000 tickets with an average commission of $5. Because of the general economic climate, Stubs expects ticket volume to decline by 20 percent. Estimate commission revenues for S..

What was the approximate amount stolen during the past year : Snake Creek Company has one trusted employeewho, as the owner said, handles all of the book-keeping and paperwork for the company. This employee is responsible for counting, verifying, and recording cash receipts and payments, making the weekly bank ..

What is the break-even point in sales units : ABC Company sells a product that sells for $20 per unit. Variable costs are $8 per unit, and fixed costs total $12,000 annualy. What is the product's CM ratio? What is the break-even point in sales dollars? What is the break-even point in sales units..

Company could keep the inventory current and fresh : Where does Rue 21 sell its inventory? Retail or wholesale? In limited locations or throughout the world. Are there specific states or countries? What type of items does Rue 21 have in inventory? Would Rue 21 ever have outdated inventory? What would R..

Support the goals and culture of this organization : A large advertising agency is headquartered in New York, but has branch offices in major cities around the world. Those offices work with key accounts in their respective cities, but branches also collaborate with each other when a client wants an in..

User Account

All Pages