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2 years ago

4. Profit maximization and loss minimization

Business

1 answer:

Stella [2.4K]2 years ago

6 0

Jake is incorrect with his assertion that the BYOB should charge 2.25 per can.

<h3>What is Profit maximization and Loss minimization?</h3>

The process of Profit maximization ensures that favorable output and price are achieved to maximize its return while the process of Loss minimization ensures there is lower loss on return in the longer-run.

Price QD T*R(P*Q) Total cost(ATC*Q) Profit(TR-TC)

2 1000 2000 2750 -750

2.25 750 1687.5 2625 -937.5

Given that loss realized is lower in $2 per unit than $2.25 per unit, then, Jake is not correct with his assertion that the BYOB should charge 2.25 per can.

Note: The point has been placed on the graph to indicate the profit-maximizing price and quantity for BYOB.

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Matt and Patricia are husband and wife and live in Oregon. In 2010 and using her funds, Patricia purchased a residence for $400,

ratelena [41]

Answer:

In 2020, Matt’s gross estate includes $1 million and a marital deduction of $1 million is been allowed for estate tax purposes

Explanation:

Patricia is said to made a gift to Matt her husband in 2010 which is (50% ×$400,000) $200,000 which means marital deduction of an equal amount will be allowed for the gift tax purposes .

Matt’s gross estate also includes $1 million which is (50% ×$2 million) and will as well be offset by a marital deduction of an equal amount which is why the correct statement is:

In 2020, Matt’s gross estate includes $1 million and a marital deduction of $1 million is been allowed for estate tax purposes.

7 0

3 years ago

UNEVEN CASH FLOW STREAM

vladimir2022 [97]

Answer:

Present Value

Stream A $1,251.247

Stream B $1,300.316

Explanation:

<em>The present value of a future sum is the amount that would be invested today at the prevailing interest rate to have the sum</em>

Stream A

(100 × 1.08^9-1) + (400× 1.08^-2) + (400× 1.08^-3) + (400× 1.08^-4) + (300× 1.08^-5) = $1,251.247

Stream B

(300 × 1.08^9-1) + (400× 1.08^-2) + (400× 1.08^-3) + (400× 1.08^-4) + (100× 1.08^-5) = $1,300.316

Present Value

Stream A $1,251.247

Stream B $1,300.316

4 0

3 years ago

You run a nail salon. Fixed monthly cost is $5,518.00 for rent and utilities, $6,014.00 is spent in salaries and $1,613.00 in in

Liono4ka [1.6K]

Answer:

With 266 costumers it is indifferent where the nail salon is located.

Explanation:

Giving the following information:

Fixed monthly cost is $5,518.00 for rent and utilities

$6,014.00 is spent on salaries.

$1,613.00 in insurance.

Every customer requires approximately $4.00 in supplies.

You charge $120.00.

New location:

Fixed costs in rent and utilities= $11,401

Salaries= $6,716.00

Insurance to $2,203.00 per month.

The cost of supplies will increase to $7.00 per service.

Selling price= $150.00 per service.

Gross profit old location= Contribution margin*Q - fixed costs

Gross profit old location= (120-4)*Q - 13145

Gross profit new location=Contribution margin*Q - fixed costs

Gross profit new location= (150-7)*Q - 20320

116*Q-13145= 143*Q - 20320

7175=27*Q

Q=265.74074 = 266costumers

8 0

3 years ago

Ecker Company reports $1,925,000 of net income for 2017 and declares $269,500 of cash dividends on its preferred stock for 2017.

Basile [38]

Answer:

(A) $1,655,500

(B) $5.52 per share

Explanation:

Ecker company announced a net income of $1,925,000

They also declare a cash dividend of $269,500

The company has 300,000 weighted average shares of common stock

(A) The amount of net income available to common stockhloders for 2017 can be calculated as follows

Net income available to common stockhloders= Net income- Preferred Cash dividend

= $1,925,000-$269,500

= $1,655,500

(B) The common basic EPS for 2017 can be calculated as follows

Common basic EPS= Net income available to stockholders/weighted average outstanding shares

= $1,655,500/300,000

= $5.52 per share

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3 years ago

The management software for your sound card has just downloaded and installed the latest driver for your sound card. After a reb

Fudgin [204]

Answer:

Driver roll back.

Explanation:

The Roll Back Driver feature, available within Device Manager in all versions of Windows, is used to uninstall the current driver for a hardware device and then automatically install the previously installed driver.

3 0

3 years ago