Answer:
Nominal
EAR
annual
higher than
Explanation:
The Nominal interest rate is quoted by borrowers and lenders, and it is also called the annual percentage rate (APR).
If the securities have different compounding periods, then the EAR must be used for comparison.
If a loan or investment uses annual compounding, then the nominal interest rate is also its effective annual rate.
However, if compounding occurs more than once a year, EAR is higher than INOM.
2. In 2016; the cost of a market basket of goods was $2,000. In 2018, the cost of the same market basket of goods was
$2,100. Use the price index formula to calculate the price index for 2018 if 2016 is the base year. Show your work. 2
pts
Answer:
105
Explanation:
base year = 2016
cost of market basket of goods in base year = $2,000
CPI for base year = 100
year 2018
cost of market basket of goods in 2018 = $2,100
CPI for 2018 = (cost of basket of goods in 2018 / cost of basket of goods in base year) x 100 = ($2,100 / $2,000) x 100 = 105
Hadley Corporation, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $131 Units in beginning inventory 50 Units produced 2,110 Units sold 1,110 Units in ending inventory 1,050 Variable costs per unit: Direct materials $ 45 Direct labor $ 33 Variable manufacturing overhead $ 9 Variable selling and administrative expense $ 7 Fixed costs: Fixed manufacturing overhead $18,990 Fixed selling and administrative expense $22,200 What is the total period cost for the month under variable costing
Answer:
Period costs= $48,960
Explanation:
Giving the following information:
Units sold 1,110
Variable selling and administrative expense $ 7
Fixed manufacturing overhead $18,990
Fixed selling and administrative expense $22,200
Under the variable costing method, the period costs include the fixed manufacturing overhead, selling, and administrative costs both fixed and variable.
Period costs= (7*1,110) + 18,990 + 22,200
Period costs= $48,960
Clothing retail stores are an example of this market structure.
a monopoly
monopolistic competition
perfect competition
an oligopoly
Answer:Monopolistic Competition
Explanation:
Sue and Andrew form SA general partnership. Each person receives an equal interest in the newly created partnership. Sue contributes $11,000 of cash and land with an FMV of $56,000. Her basis in the land is $21,000. Andrew contributes equipment with an FMV of $13,000 and a building with an FMV of $34,000. His basis in the equipment is $9,000, and his basis in the building is $21,000. How much gain must the SA general partnership recognize on the transfer of these assets from Sue and Andrew
Answer: $0
Explanation:
There is no gain to be recognized when assets are being transferred between living individuals or entities due to this falling under the Carryover basis.
This carryover basis of the asset will in general, be the same basis as the cost or basis of the asset.
There will therefore be a $0 gain to the SA General Partnership. Gains will be calculated if the partnership wants to dispose of the assets.
The following selected transactions were taken from the records of Rustic Tables Company for the year ending December 31: June 8. Wrote off account of Kathy Quantel, $4,360. Aug. 14. Received $3,100 as partial payment on the $7,800 account of Rosalie Oakes. Wrote off the remaining balance as uncollectible. Oct. 16. Received the $4,360 from Kathy Quantel, whose account had been written off on June 8. Reinstated the account and recorded the cash receipt. Dec. 31 Wrote off the following accounts as uncollectible (record as one journal entry): Wade Dolan $1,260 Greg Gagne 780 Amber Kisko 3,010 Shannon Poole 1,740 Niki Spence 480 Dec. 31 If necessary, record the year-end adjusting entry for uncollectible accounts. Rustic Tables Company prepared the following aging schedule for its accounts receivable: Aging Class (Number of Days Past Due) Receivables Balance on December 31 Estimated Percent of Uncollectible Accounts 0-30 days $209,000 3% 31-60 days 78,000 9 61-90 days 25,000 25 91-120 days 9,000 45 More than 120 days 13,000 85 Total receivables $334,000
Answer:
See journal entry below
Explanation:
June 8. Bad debt expense Dr. $4,360
To Accounts receivable - Kathy Quantel Cr. $4,360
Aug. 14. Bank Dr. $3,100
Bad debt expense Dr. $4,700
To Accounts receivable - Rosalie Oakes Cr. $7,800.
Oct. 16 Accounts receivable - Kathy Quantel Dr. $4,340
To Bad debts expense Cr $4,340
Cash Dr. $4,340
To Accounts receivable - Kathy Quantel Cr. $4,340
Dec. 31 Bad debt expense. Dr $7,270
To Account receivable - Wade Dolan
Cr $1,260
A/R - Greg Gagne
Cr $780
A/R - Amber Kisko
Cr $3,010
A/R - Shanoon Poole
Cr $1,740
A/R - Niki Spence
Cr $480
The Richmond Corporation uses the weighted-average method in its process costing system. The company has only a single processing department. The company's ending work in process inventory on August 31 consisted of 18,000 units. The units in the ending work in process inventory were 100% complete with respect to materials and 60% complete with respect to labor and overhead. If the cost per equivalent unit for August was $2.75 for materials and $4.25 for labor and overhead, the total cost assigned to the ending work in process inventory was:
Answer:
$95,400
Explanation:
Step 1 : Find the equivalent units of production in Ending Work in Progress
Materials = 18,000 x 100 % = 18,000 units
Conversion costs = 18,000 x 60 % = 10,800 units
Step 2 : Calculate the Cost of units in Ending Work in Progress
Cost of units in Ending Work in Progress = 18,000 x $2.75 + 10,800 x $4.25
= $95,400
Conclusion :
The ending work in process inventory was $95,400.
During June, Lionel Magazine sold for cash an advertising space for $1200 total to be run in the July through December issues. On that date, the Lionel Magazine Company properly recognized Unearned Revenue. The adjusting entry to record on July 31 for the first month of advertising space includes:
Answer:
Lionel Magazine
The Adjusting Journal Entry to record on July 31 for the first month of the advertising space sold includes a:
Debit to the Unearned Revenue account with $200
and
Credit to Earned Advertising Revenue account with $200
This will reduce the Unearned Revenue account by $200 being the amount for July (one month) and at the same time, increase the Earned Advertising Revenue account by $200.
Explanation:
a) Data and Analysis:
Unearned Revenue $200 Earned Revenue $200 ($1,200/6)
Answer:
Lionel is a resident at a personal care home. A direct care staff person threatened to steal Lionel’s collection of car magazines if he did not socialize with other residents during recreational activities. The threat of stealing Lionel’s magazines is an example of ____________.
Explanation:
Since a cell phone is a private good, if Neha chooses to spend $300 on a cell phone, Neha would get $300 of benefit from the cell phone and Teresa wouldn't receive any benefit from Neha's choice. If Neha still spends $300 on a cell phone and Teresa chooses to contribute $300 to the public park, Neha would still receive the $270 of benefit from Teresa's generosity. In other words, if Neha decides to keep the $300 for a cell phone and Teresa decides to contribute the $300 to the public project, then Neha would receive a total benefit of $300 $270
Answer:
In other words, if Neha decides to keep the $300 for a cell phone and Teresa decides to contribute the $300 to the public project, then Neha would receive a total benefit of:
$570.
Explanation:
Neha has, in this situation, maximized his benefits to the detriment of the public good. This is an illustration of the tragedy of the commons. The tragedy of the common is an economic problem that explains the loss that the society incurs when some persons like Neha neglect to contribute to the common good because they are solely concentrated on pursuing their individual goals for personal gains.
In 1974, the price level for Pacifica was 100, the price level for Atlantica was also 100, and in the foreign exchange market 1 Pacifica pound was equal to 1 Atlantica mark. In 2003, the price level in Pacifica had risen to 280 and the price level in Atlantica had risen to 360. a. According to PPP, what should the pound-mark exchange rate be in 2003
Answer: 0.78 pound mark exchange rate
Explanation:
The Purchasing power parity (PPP) is typically used to make comparison between the currencies of different countries' currencies and also used in comparing their standards of living.
According to PPP, the pound-mark exchange rate in 2003 will be calculated as:
= 280/360
= 0.78
A year ago, you graduated from college and decided to open your own computer software company. Over the past year, your firm generated $500,000 in revenue. You hired two software engineers and paid each of them $150,000 over the past year. You also purchased computer equipment that cost a total of $30,000. To save money, you decided to use the basement of your house for the business. Previously, you had rented this space to a tenant for $6,000 per year. Instead of opening your own business, you could have gone to work for Microsoft and earned $200,000 over the past year.
Required:
a. What were your accounting profits of your firm over the past year?
b. What were the economic profits of your firm over the past?
Answer:
170,000
$-36,000
Explanation:
Accounting profit= total revenue - explicit cost
Total revenue =price x quantity sold
Explicit cost includes the amount expended in running the business. They include rent , salary and cost of raw materials
Economic profit = accounting profit - implicit cost
Implicit cost is the cost of the next best option forgone when one alternative is chosen over other alternatives
Accounting profit = $500,000 - [( $150,000 x 2) + $30,000] = $170,000
Economic profit = $170,000 - ($200,000 + $6000) = -36,000
A borrower is interested in comparing the monthly payments on two otherwise equivalent 30 year FRMs. Both loans are for $100,000 and have a 7% interest rate. Loan 1 is fully amortizing, where as Loan 2 has negative amortization with a $120,000 balloon payment due at the end of the life of the loan. How much higher is the monthly payment on loan 1 versus loan 2
Answer:
The monthly payment in Loan 1 is higher than in loan 2 by:
(665.30 - 566.94) = $98.36
Explanation:
Solution:
Comparison of Loan 1 and Loan 2 in terms of monthly payments.
For the first loan, we have to calculate equal monthly payments with the following details:
Principal = $ 100,000,
Monthly Interest rate = 7/12 = 0.58% ,
Term = 360 months
Use the PV = C (1 - (1+r)-n ) / r ,
where PV = Principal, r = monthly rate, n = 360 and
find C (EMI) = $665.30
NOTE: (Excel function is used: PMT(rate, year, PV) formula for convenience)
For Loan 2, we have to understand a few things.
The original loan principal is $ 100,000,
but you are allowed to do a balloon payment of $ 120000 at the end of 30 years.
The present value of the Balloon payment can be deducted from the principal to find out the monthly cash payments to be done.
The monthly payments will of course be lower since a lump sum balloon payment is done at the end.
The calculation is similar to the above. In this scenario, the Monthly payment comes out to be $ 566.94
Hence,
The monthly payment in Loan 1 is higher than in loan 2 by:
(665.30 - 566.94) = $98.36
) Consider two perfectly negatively correlated risky securities A and B. A has an expected rate of return of 10% and a standard deviation of 16%. B has an expected rate of return of 8% and a standard deviation of 12%. The risk-free portfolio that can be formed with the two securities will earn a(n) ________ rate of return. A) 8.9% B) 9.9% C) 8.5% D) 9.0%
Answer:
D) 9.0%
Explanation:
Calculation to determine what The risk-free portfolio that can be formed with the two securities will earn
Using this formula
Return of the portfolio =Weight of stock A * Return of Stock A + Weight of Stock B * Return of Stock B
Let plug in the formula
Return of the portfolio=( 0.5 * 0.1)+ (0.5 * 0.08)
Return of the portfolio= 0.05 + 0.04
Return of the portfolio= 0.09*100
Return of the portfolio= 9%
Therefore The risk-free portfolio that can be formed with the two securities will earn a(n) 9.0% rate of return.
Suppose that a candy maker owns a building and is renting part of the building's space to a library. Further suppose that because the candy maker is the owner, he has the right to make noise during the day while he makes candy. While the library cannot insist on a quiet environment, it could move to a quieter building. However, rent in the next best building is $300/month more than rent in the noisy building. The candy maker can adopt a new technology that eliminates the noise for $225/month. Given this situation, can the library find a private solution with the candy maker that will make both better off
Answer:
The best option is to opt for the new technology which eliminates noise for $225/month.
Explanation:
The candy maker will go for the cheapest available solution for the noise. The new space rent for the library is $300 while the new equipment that eliminates the noise is $225. The best option is the one which lowest cost. The candy maker should opt to buy the new equipment.
four importance of Engineering
Explanation:
Engineering is a profession in which scientific knowledge and mathematics is used and experimented with to develop ways that benefit mankind, making it extremely important to society for several reasons.
Engineering encompasses a whole range of industries that could include on-site, practical construction work as well as evaluating safety systems from an office
A medical center implemented changes in its approach in handling labor and delivery by offering birth rooms that allowed the parents to stay in the same room throughout the entire process. To determine the effectiveness of the goal to increase client satisfaction and decrease postpartum complications, which internal sources should the team prioritize for data collection
Answer:
Patient surveys
Electronic health records
Explanation:
In research, Data collection is a necessary step to take. The main reason for data collection is to carry out study purpose, answer research questions, test hypothesis(es), provide evidence about the area of study anf to test the validity and reliability of study instruments used.
For effectiveness to be known, it is important to know terms closely.
Patient satisfaction can be gathered through the patient survey because patient can give you firsthand information. Postpartum complications can be know by the electronic health records. By assessing the records, you will find more information.
Hollywood Co. computed an overhead rate for machining costs ($1,500,000) of $15 per machine hour. Machining costs are driven by machine hours. The company produces two products, Chapel and Tower. Chapel requires 60,000 machine hours, while Tower requires 40,000 machine hours. Using activity-based costing, machining costs using machine hours to assign overhead to each product is
Answer:
Results are below.
Explanation:
To allocate overhead to Chapel and Tower, we need to use the following formula:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Chapel:
Allocated MOH= 15*60,000
Allocated MOH= $900,000
Tower:
Allocated MOH= 15*40,000
Allocated MOH= $600,000
what are the proffesional values
Answer:
The values include “service, access equality, respect, confidentiality and privacy, protection of intellectual property rights, literacy, technical literacy, stewardship, and professional and social obligations”
On January 1, Year 1, Samuel Company leases equipment from Lease Corp. The lease agreement specifies five annual payments of $50,000, with the first payment due at lease signing (January 1, Year 1), and at each January 1 from Year 2 to Year 5. At the end of the lease term, the equipment will be returned to the lessor and is expected to have a residual value of $30,000. The estimated useful life of the equipment is six years. The interest rate in the financing arrangement is 6%. The cost to Lease Corp of manufacturing the equipment is $150,000. The journal entry for the Lessor on January 1, Year 1 will include __________-
Answer:
Cash (Dr.) $50,000
Lease Receivable (Cr.) $50,000
Explanation:
Lessor is the person who leases the item to gain financial benefit from the asset user lease. Lessee is a person who uses the assets but does not owns it so he pays lease rentals. In the given scenario the lease recoding at inception in the lessor books will be cash debit and lease receivable credit.
Noncash investing and financing activities may be disclosed in: Multiple Choice A note in the financial statements or a schedule attached to the statement of cash flows. The operating activities section of the statement of cash flows. The investing activities section of the statement of cash flows. The financing activities section of the statement of cash flows. The reconciliation of cash balance section.
Answer:
(A note in the financial statements or a schedule attached to the statement of cash flows.
Explanation:
Noncash investing and financing transactions do appear as a separate schedule on the statement of cash flows. They are are notable investing and financing activities that do not affect cash directly. The IFRS and US GAAP mandates companies to disclose all notable or significant non-cash investing and financing activities either at the bottom of the statement of cash flows usually in a form of a footnote or in the notes to the financial statements.
Noncash investing and financing activities may be disclosed in "a note in the financial statements or a schedule attached to the statement of cash flows". The correct option is A.
Noncash investing and financing activities refer to transactions that do not involve the direct use or receipt of cash but have significant financial implications for a company.
This statement of cash flows itself typically segregates cash flow information into three sections: operating activities, investing activities and financing activities.
While the noncash activities are not part of the operating, investing or financing activities sections, they are important to provide a comprehensive view of a company's financial health.
It can be included in a separate note or schedule to ensure transparency and proper understanding by stakeholders.
Therefore, the correct option is A.
To know more about Noncash investing here,
https://brainly.com/question/33031340
#SPJ6
The following information is available for Trinkle Company for the month of June: The unadjusted balance per the bank statement on June 30 was $56,084. Deposits in transit on June 30 were $2,655. A debit memo was included with the bank statement for a service charge of $22. A $4,418 check written in June had not been paid by the bank. The bank statement included a $800 credit memo for the collection of a note. The principal of the note was $775, and the interest collected amounted to $25. Required Determine the true cash balance as of June 30. (Hint: It is not necessary to use all of the preceding items to determine the true balance.)
Answer:
$54,321
Explanation:
Prepare a Bank Reconciliation statement to determine the true cash balance as of June 30.
Bank Reconciliation statement as at June 30
Balance as per Bank Statement $56,084
Add Outstanding Lodgments $2,655
Less Unpresented Checks ($4,418)
Balance as per Cash Book $54,321
Conclusion
The true cash balance as of June 30 is $54,321.
Beech Manufacturing makes expanded and is now making two products: Standard and Deluxe. Each Standard model takes 1.5 machine hours and the Deluxe model requires 2 machine hours. The company predicted it would produce 1,100 units of the Standard Model and 770 units of the Deluxe Model during July. The company uses units of input (machine hours) to budget utility costs. The utility rate per machine hour is $0.35. During July, the company produced 1200 units of the Standard model and 850 units of the Deluxe model and used 3400 machine hours. What is the utilities flexible budget for July
Answer:
Beech Manufacturing
The utilities flexible budget for July is:
= $1,225
Explanation:
a) Data and Calculations:
Utility rate per machine hour = $0.35
Standard Deluxe Total
Predicted production 1,100 770 1,870
Expected machine hours 1,650 3,080 4,730
Units produced 1,200 850 2,050
Standard machine hour/unit 1.5 2
Budgeted machine hours
(flexible budget) 1,800 1,700 3,500
Actual machine hours used 3,400
Utilities Static Budget = $1,655.50 (4,730 * $0.35)
Utilities Flexible Budget = $1,225 (3,500 * $0.35)
Utilities Actual Budget = $1,190 (3,400 * $0.35)
Savers make deposits and investments in order to earn what?
Why don't savers invest their money directly with the businesses?
Answer:
Savers make deposits and investment in order to earn interest on their money. This often works very well because they do not earn only interest as a percentage of their money, but also interest as a percentage of previously accrued interest, something known as compound interest.
Savers do not invest their money directly with the businesses because real economic activity tends to be riskier (although it could also be more profitable for this same reason). This is why they often prefer to invest the money on financial instruments.
For each of the following scenarios, identify the number of firms present, the type of product, and the appropriate market model. Select the matching entry for each dropdown box in the following table.
Scenario
Number of Firms
Type of Product
Market Model
There are hundreds of colleges and universities that serve millions of college students each year. The colleges vary by location, size, and educational quality, which allows students with diverse preferences to find schools that match their needs.
There are hundreds of high school students in need of algebra tutoring services. Dozens of companies offer tutoring services; parents view the quality of the tutoring at the different companies to be largely the same.
In a small town, there are four providers of broadband Internet access: a cable company, the phone company, and two satellite companies. The Internet access offered by all four providers is of the same speed. Almost everyone in the city already has broadband, so any potential new company would have to engage in a price war with the existing companies and would be unlikely to cover its costs for years, if ever.
The government has granted the U.S. Postal Service the exclusive right to deliver mail.
Answer:
Number of Firms - many
Type of Product - differentiated
Market Model - monopolistic competition
Number of Firms - many
Type of Product - standardised
Market Model - perfect competition
Number of Firms - few
Type of Product - standardised
Market Model - oligopoly
Number of Firms - one
Type of Product - unique
Market Model - monopoly
Explanation:
A perfect competition is characterized by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry. In the long run, firms earn zero economic profit. If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.
Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.
A monopolistic competition is when there are many firms selling differentiated products in an industry. A monopoly has characteristics of both a monopoly and a perfect competition. the demand curve is downward sloping. it sets the price for its goods and services.
An example of monopolistic competition are restaurants
A monopoly is when there is only one firm operating in an industry. there are usually high barriers to entry of firms. the demand curve is downward sloping. it sets the price for its goods and services.
An example of a monopoly is a utility company
An Oligopoly is when there are few large firms operating in an industry. While, a monopoly is when there is only one firm operating in an industry.
Oligopolies are characterised by:
price setting firms profit maximisation high barriers to entry or exit of firms downward sloping demand curveA bank receives a deposit for $50,000. If the bank has a 10 percent reserve
requirement, approximately how much money could this initial deposit
eventually add to the economy?
Answer:
$500,000
Explanation:
ap ex
A bank having a 10 percent reserve requirement will add $500,000 to the economy on receiving $50,000 as a initial deposit.
Reserve requirements are the sums of money that a bank must have in reserve in order to cover liabilities in the event of an unexpected withdrawal. Reserve requirements are a technique used by the central bank to influence interest rates by increasing or decreasing the money supply in the economy.
According to the question, reserve requirement is 10%, and the initial deposit is $50,000.
Therefore, $50,000+$50,000×10/100 will result in the money that could be added to the economy, which is $500,000.
To learn more on deposit, click here:
https://brainly.com/question/30053423
#SPJ7
ACTIVITY 7
7.1 Read the following text and answer the following questions.
VENTURING AND EXPANDING
Businessmen have realised that it is not always necessary to start a business from scratch. In order to
expand, wise businessmen have given other businesses a right to sell their similar products within some
regulations. Others have been smart enough to realise that their small items that require regular
maintenance can make money for by contracting them to another business. It is even more
advantageous when an institution decides to focus on its vision and improve their quality by allowing
specialists to perform other duties on their behalf.
7.1.1
Identify THREE ways of acquiring a business avenue from the scenario above. Motivate your
answer by quoting from the scenario above.
(9)
Use the table below to present your answer.
BUSINESS AVENUE
MOTIVATION
7.1.2
Analyse the impact of each of way of acquiring a business avenue identified in QUESTION
7.1.1.
(18)
7.1.3
Outline the contractual obligations of any TWO of the ways to acquire a business avenue
identified in QUESTION 7.1.1
(12)
Answer:
add a responsible business partner that add income to your sales and together you can achieve your success
You sold a car and accepted a note with the following cash flow stream as your payment. The effective price you received for the car assuming an interest rate of 6.0% is closest to:
Answer:
The right response is "$5986.815".
Explanation:
The given query is incomplete. Please find attachment of the complete query.
The actual price users earn mostly corresponds to the current value of the amount. Throughout cash flows, users get 7000 $, however because of the rate of the interest some must be lowered.
So,
⇒ [tex]PV= (\frac{1000}{1.06} ) + (\frac{2000}{1.06^2}) + (\frac{2000}{1.06^3}) + (\frac{2000}{1.06^4} )[/tex]
⇒ [tex]=943.39+1,779.99+1,679.23+1,584.18[/tex]
⇒ [tex]=5986.815[/tex] ($)
At Bargain Electronics, it costs $30 per unit ($20 variable and $10 fixed) to make an MP3 player at full capacity that normally sells for $55. A foreign wholesaler offers to buy 4,960 units at $24 each. Bargain Electronics will incur special shipping costs of S4 per unit. Assuming that Bargain Electronics has excess operating capacity, indicate the net income (loss) Bargain Electronics would realize by accepting the special order. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Reject Accept Net Income
Order order Increase
(Decrease)
Revenues $ $ $
Cost-Manufacturing
Shipping
Net Income $ $ $
The special order should be:______.
Answer:
Effect on income= $0
Explanation:
Because the company has excess capacity and it is a special offer that would not affect normal sales, we will not include the fixed costs.
Effect on income= total sales revenue - total variable cost
Effect on income= 24*4,960 - (20 + 4)*4,960
Effect on income= $0
The Swenson Corporation has a standard costing system. The following data are available for June: Actual quantity of direct materials purchased 35,000 pounds Standard price of direct materials $4 per pound Material price variance $7,000 unfavorable Material quantity variance $4,200 favorable The actual price per pound of direct materials purchased in June is:
Answer:
Actual price= $4.2 per pound
Explanation:
Giving the following information:
Actual quantity of direct materials purchased 35,000 pounds
Standard price of direct materials $4 per pound
Material price variance $7,000 unfavorable
To calculate the actual price, we need to use the direct material price variance formula:
Direct material price variance= (standard price - actual price)*actual quantity
-7,000 = (4 - actual price)*35,000
-7,000= 140,000 - 35,000actual price
35,000actual price= 147,000
Actual price= $4.2 per pound
Tony runs a sales and marketing research firm. He is very hands-on and participates in various client meetings. In almost all his conversations, Tony repeats or rephrases what a person has said. Which crucial aspect of good listening skills does Tony demonstrate? A. questioning B. negotiation C. reflecting D. confronting
Answer:
C. Reflecting
Explanation: it is correctomando
RapidMeal Co. has two restaurants that are open 24 hours per day. Fixed costs for the two restaurants together totals $450,000 per year. Service varies from a cup of coffee to full meals. The average sales check for each customer is $8.00. The average cost of food and other variable costs for each customer is $3.20. The income tax rate is 30%. Target net income is $105,000.
a. Determine the revenues needed to obtain the target net income.
b. How many sales checks are needed to (a) earn a net income of $105,000 and (b) to break even?
c. Determine net income if the number of sales checks is 150,000.
Answer:
a) 1000000 , b) 125000 & 93750 , c) 270000
Explanation:
Target Net profit = 105000
Let profit before tax be p
So, p - 30%p = 105000
0.70p = 105000
p = 150000
Total Net profit = Total revenue - Total cost
Average net profit = Average revenue - average cost. Let no. of customers, or sales checks =x
Total profit / x = 8 - (450000/ x + 3.2)
150000/ x = 8 - 3.2 - 450000/x
150000/x = 4.8 - 450000/x
x (no. of customers needed) = 125000 [b]
a] Total revenue needed = Average revenue x no. of customers needed
= 125000 x 8 = 1000000
b] Customers needed for break even {where TR = TC}
8x = 450000 + 3.2x
x = 93750
c] Net Income if sales checks is 150000 = TR - TC
= 150000 (8) - 450000 - 3.2 (150000) = 1200000 - 450000 - 480000
= 270000