Define a revenue center, a cost center, a profit center, and an investment center. Give an example of each type of center. Where appropriate refer to specific examples within Human resources.
Harrison Handbags has an advertising budget of $150,000. The company believes that if it increases the advertising budget by $24,000, it will sell an additional 32,000 purses and each purse will provide an additional profit to the company of $1.00 before consideration of the advertising costs. What additional profit should the company expect if it accepts the proposed budget increase?
Brent Bybee is the manager of the packaging department of the Carnival Candy Company. He is responsible for all costs of his department except rent, property taxes, and salaries.Budgeted costs for his department for the month of April were:Labor$12,000Materials7,500Supplies1,700Maintenance3,500Property taxes1,000Rent1,800Salaries10,000Utilities5,000Actual costs for the month of April were:Labor$12,200Materials10,200Supplies1,650Maintenance3,500Property taxes1,100Rent1,800Salaries10,000Utilities5,000Determine the variances for each cost for which Brent is responsible. Then, as the plant manager, write a memo to Brent analyzing your findings and discussing how you want to proceed.