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3 years ago

15

When a business asks "What business are we in?" they are: a. conducting an environmental analysis. b. defining their business mi

ssion. c. writing a marketing plan. d. determining how many SBUs to create.

1 answer:

Paul [167]3 years ago

8 0

Answer:

B. Defining their business mission.

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A university is trying to determine what price to charge for tickets to football games. At a price of $24 per ticket, attendan

m_a_m_a [10]

Answer:<u><em> Price per ticket should be charged in order to maximize revenue is $15.</em></u>

<u><em>70000 people will attend at this price.</em></u>

<u><em></em></u>

Explanation:

Let 'x' represent the decrease .

Using the given information,

Price per ticket = 24 - 3x

Average no. of people that watch the game = 40000 + 10000x

Additional money spent by every person = 6(40000 + 10000x)

Revenue [R(x)] = Price per ticket $\times$ Average no. of people that watch the game + Additional money spent

Revenue [R(x)] = (24 - 3x) $\times$ (40000 + 10000x) + 6(40000 + 10000x)

On solving the above equation we get ,

Revenue [R(x)] = -30000 $x^{2}$ + 180000x + 1200000

In order to find the critical point we'll differentiate the following with respect to x;

R'(x) = -60000x + 180000

∵ R'(x) = 0

x = 3

<u><em>Thus, the price per ticket that should be charged in order to maximize revenue is (24 - 3 $\times$ 3 = 24 - 9 = $15)</em></u>

<u><em>People that will attend at this price = (40000 + 10000 $\times$ 3) = 70000</em></u>

7 0

3 years ago

Suppose your firm is considering investing in a project with the accompanying cash flows, that the required rate of return on pr

AfilCa [17]

Answer:

REJECTED

It fails the payback test.

Explanation:

first, we check if payback occurs at year 3;

payback:

-175,000

-65,800

+94,000

<u> +41,000</u>

-105,800

the cashflow until year 3 aren't positive thus, the payback is not achieve

As the discount paymback will make the future cash inflow lower than nominal; the discounted payback will also not be achieve.

Last, let's check if the net present value of the project at 11% is positve:

$\frac{cashflow}{(1 + rate)^{time} } = PV$

$\left[\begin{array}{ccc}Year&cashflow&PV\\0&-175000&-175,000\\1&-65800&-59,279.28\\2&94000&76,292.51\\3&41000&29,978.85\\4&122000&80,365.18\\5&81200&48,188.25\\&TOTAL&545.51\\\end{array}\right]$

The project achieve a psoitive value at the discount rate of 11%

But, It will be rejected as it fails the payback tests.

8 0

3 years ago

Organic Laboratories allocates research and development costs to its three research facilities based on each facility's total an

DedPeter [7]

Answer:

Amount of costs allocated to the Illinois research facility = $31,500,000

Explanation:

Given:

Research cost

Kentucky = $56,000,000

Arizona = $100,000,000

Illinois = $84,000,000

Research and development cost = $90,000,000

Find:

Amount of costs allocated to the Illinois research facility

Computation:

Amount of costs allocated to the Illinois research facility = Research cost of Illinois[Research and development cost / Total research cot]

Amount of costs allocated to the Illinois research facility = 84,000,000[90,000,000 / (56,000,000 + 100,000,000 + 84,000,000)]

Amount of costs allocated to the Illinois research facility = 84,000,000[90,000,000 / (240,000,000)]

Amount of costs allocated to the Illinois research facility = 84,000,000[0.375]

Amount of costs allocated to the Illinois research facility = $31,500,000

3 0

3 years ago

1. Baltimore Company experienced a total increase in stockholders' equity of $27,000 during the current year. Stockholders' equi

Verdich [7]

Answer:

1) 91,000 revenues

2) 2,400 income

Explanation:

increase from shares +56,000

ncrease from revneues X

decrease from expense -120,000

total increase + 27,000

the revenues where for

270,00 + 120,000 - 56,000 = 91,000

Assets increase 10,500

Liabilities increase for 8,100

Equity incrase according to accounting equation:

Assets = liab + equity

10,500 = 8,100 + equity

equity = 2,400

there is no dividends or share issuance nor treasury stock thus, all this variacion is explained through net income

8 0

4 years ago

The 2016 financial statements of Leggett & Platt, Inc. include the following information in a footnote. (in millions) 2016 2

Virty [35]

Answer:

Option (D) is correct.

Explanation:

Given that,

In 2016,

Allowance for doubtful accounts = $7.2 million

Total accounts and other receivables, net = $486.6 million

In 2015,

Allowance for doubtful accounts = $9.3 million

Total accounts and other receivables, net = $520.2 million

Therefore,

Company’s current gross accounts and other receivables at the end of 2016:

= net receivable(2016) + allowance for doubtful(2016)

= $486.6 + $7.2

= $493.8

8 0

3 years ago