Solved

SeaScape Resorts Owns and Operates Two Resorts in a Coastal

Question 120

Multiple Choice

SeaScape Resorts owns and operates two resorts in a coastal town.Both resorts are located on a barrier island that is connected to the mainland by a high bridge.One resort is located on the beach and is called the Crystal Coast Resort.The other resort is located on the inland waterway which passes between the town and the mainland;it is called the Harborview Resort.Some key information about the two resorts for the current year is shown below. SeaScape Resorts owns and operates two resorts in a coastal town.Both resorts are located on a barrier island that is connected to the mainland by a high bridge.One resort is located on the beach and is called the Crystal Coast Resort.The other resort is located on the inland waterway which passes between the town and the mainland;it is called the Harborview Resort.Some key information about the two resorts for the current year is shown below.   The nontraceable operating costs of the resort amount to $3 million.By careful study,the management accountant at SeaScape has determined that,while the costs are not directly traceable,the total of $3 million could be fairly allocated to the four cost drivers as follows.   Using the information regarding the allocation of the $3 million to the four cost drivers,determine The operating profit of the Crystal Coast Resort. A) $1,500,000 B) $2,050,000 C) $2,785,000 D) $3,525,000 E) $4,215,000
The nontraceable operating costs of the resort amount to $3 million.By careful study,the management accountant at SeaScape has determined that,while the costs are not directly traceable,the total of $3 million could be fairly allocated to the four cost drivers as follows. SeaScape Resorts owns and operates two resorts in a coastal town.Both resorts are located on a barrier island that is connected to the mainland by a high bridge.One resort is located on the beach and is called the Crystal Coast Resort.The other resort is located on the inland waterway which passes between the town and the mainland;it is called the Harborview Resort.Some key information about the two resorts for the current year is shown below.   The nontraceable operating costs of the resort amount to $3 million.By careful study,the management accountant at SeaScape has determined that,while the costs are not directly traceable,the total of $3 million could be fairly allocated to the four cost drivers as follows.   Using the information regarding the allocation of the $3 million to the four cost drivers,determine The operating profit of the Crystal Coast Resort. A) $1,500,000 B) $2,050,000 C) $2,785,000 D) $3,525,000 E) $4,215,000
Using the information regarding the allocation of the $3 million to the four cost drivers,determine
The operating profit of the Crystal Coast Resort.


A) $1,500,000
B) $2,050,000
C) $2,785,000
D) $3,525,000
E) $4,215,000

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents