Answer:
B) $125,000
Explanation:
Price discrimination strategy refers to charging each customer the maximum amount of money he/she is willing to pay for a product.
In this case, the concert promoters should charge $150 per ticket to 1,000 die hard fans = $150,000 in revenue.
Then it should charge only $50 per ticket to 500 casual fans = $25,000 in revenue.
Total revenue = $150,000 + $25,000 = $175,000
<u>minus total costs = ($50,000) </u>
Net income = $125,000
Answer:
See below
Explanation:
The below shows the calculation of variance
Budgeted direct labor (per unit) 0.60
Units 2,000
Budgeted direct total labor (hrs) 1,200
Actual hours 1,160
Standard rate $17
Direct labor efficiency variance
The direct labor efficiency variance
= (Budgeted hours - Actual hours) × Standard rate
= (1,200 - 1,160) × $18
= $720 favourable
Answer:
$0
Explanation:
$15,000 (Hillary's partnership basis at the beginning of the year) + $10,000 (ordinary business income) + $8,000 (tax exempt income) - $15,000 (reduction in share of partnership's debt) - $25,000 (cash distribution) = -$7,000. Since the basis cannot be negative, it is $0.
Also, since Hillary's adjusted basis resulted in a negative value, she must report a capital gain of $7,000. That way her basis = -$7,000 + $7,000 = $0