29 Jun Question Assignment #4 Question [26 marks]
Question
Assignment #4
Question
[26 marks]
Horses ‘R Us (HRUS) Co. is a horse grooming and training company. They also supply horses
to movie productions to star in various movies. They have experienced horse handlers, horse
groomers and provide horses and all other services needed to care for and transport the
horses.
Over the weekend of January 6th and 7th, HRUS had 2 different jobs. The first job was to
provide their services to a horse SHOW in Coquitlam. The second job was to provide their
services plus some of their very highly trained horses to a MOVIE company in Vancouver.
Both the SHOW and the MOVIE were “open” from 10 am to 6 pm.
The following is a list of the total (incremental) costs incurred for the weekend:
Handlers
$9,600
Groomers
5,500
Horse Food
948
Veterinarian
2,800
Transportation
8,950
Supervision
1,960
Total
$29,758
Additional information follows:
The SHOW took place on January 7th (Sunday). The MOVIE took place on January 6th and 7th
(Saturday and Sunday).
HRUS provided the SHOW with handlers and groomers for 25 horses owned by the clients.
The clients delivered their horses to HRUS’ stables on the morning of January 7th. HRUS
supplied 8 horses to the MOVIE and serviced those horses. Every horse has a handler.
Inexperienced handlers were used for the SHOW. Inexperienced handlers are paid $20/hour.
Experienced handlers were sent to the MOVIE with the horses. They are paid $35/hour. Due
to the stunts the horses have to perform for the MOVIE, the handlers have to spend two extra
hours calming the horses down at the end of the day.
The SHOW is 25 miles away from HRUS’ stables and offices. The MOVIE is 10 miles away
from HRUS’ stables.
HRUS’ groomers were used for both events. They are paid $500 per day for grooming
services, and each groomer can care for 6 horses per day. However, the horses in the MOVIE
required more time to groom, so each groomer took twice as long on the MOVIE horses. (All
groomers work the same hours per day. Different groomers are used at each event.)
HRUS will supply “horse treats” only, for the client’s horses used in the SHOW. Each horse
usually eats one bag of treats a day. HRUS’ horses used in the MOVIE are fed bales of hay
and treats. Each horse gets 4 bales of hay (per day) and will eat 20% less treats (per day)
than the horses at the SHOW. Each bag of treats that is opened during the day is thrown out if
it is not eaten (by any horse). Bales of hay cost $7.50 per bale. Treats are $12 per bag.
When there is an event, government regulations require a separate veterinarian to be on call
throughout each event (from 10 am to 6 pm). The vets charge by the hour.
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