Bane Accounting Services Planned to Charge Its Customers $120 Per

question 1

Essay

Bane Accounting Services planned to charge its customers $120 per hour in 2012. The chief operating officer expected that the company would provide 40,000 hours of service to clients. However, the vice president for marketing argued that the actual number of hours might range from 36,000 to 44,000 hours. Bane's standard variable cost is $65 per hour, and its standard fixed cost is $1,500,000.
Required:
Prepare flexible budgets for 36,000, 40,000, and 44,000 hours.

Recognize the strategic purposes and outcomes of tender offers and hostile takeovers.

Understand the implications of corporate restructuring for company liabilities and legal actions against the corporation.

Identify the regulatory and shareholder approval requirements for different types of corporate restructuring.

Know the effects of corporate restructuring on stock value and how appraisal rights work.

---

Definitions:

Note Receivable

A written promise that requires one party to pay a specified sum of money to another party on a set date or on demand.

Depositor's Account

A financial account held at a bank or financial institution, into which a depositor can deposit and withdraw money.

Debit Memorandum

A document issued by a purchaser and sent to a seller indicating the amount and reasons for deductions in the payment or an increase in the purchaser's debt.

Bank Service Charge

A fee charged by a bank for the maintenance of an account or for processing transactions.