1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Mazyrski [523]
3 years ago
13

If ticket prices were decreased by 10%, passenger flights would increase by 25%. However, total variable costs would increase by

the same percentage as passenger flights. (1) How much would net income be impacted by this change?
Business
1 answer:
mrs_skeptik [129]3 years ago
7 0

Answer:

Net income will remain same.

Explanation:

Net income is no change in net income because the sales is increase as the price of decreased. Net impact is zero.

For Example:

Price = 100

Variable cost = 50

Flights = 100

Net income = (100-50) x  100 = $5,000

Revised Calculation

Price = 100 x 90% = $90

Variable cost = 50

Flights = 100 x 125% = 125

Net income = (90-50) x 125 = $5,000

There is no change in the net income.

You might be interested in
Estimate the value of a share of Intel common stock using the residual operating income (ROPI) model as of December 25, 2010; as
wariber [46]

Answer:

Using

F=P(1+i)^n equation

we will have

n=5 years

i=11%=0.11

P=5511 million

F=23424 million

7 0
3 years ago
The following transactions occurred in April at Steve’s Cabinets, a custom cabinet firm. Purchased $80,000 of materials on accou
Airida [17]

Journal entry

1. Dr Material 80000

                    Cr Accounts payable 80000

         (Purchase material on account)

2. Dr Work in process 4000

                       Cr Material   4000

        (issue material)

3. Dr Material   56000

                     Cr Accounts payable  56000

( Purchase material on account)

4. Dr Accounts payable  80000

                                    Cr Cash 80000

(Paid cash of material purchase)

5. Dr Work in process 68000

                          Cr Material  68000

( Issued material to production)

6. Dr Work in process  100000

                              Cr Wages payable  100000

    (Direct labor incurred)

7. Dr Factory overhead 106000

                  Cr Cash                  106000

( Paid cash on account of factory overhead)

8. Dr Work in process (100000*125%) 125000

              Cr Applied factory overhead             125000

( To record applied factory overhead)

9. Dr Factory overhead  50000

                             Cr Accumulated depreciation 50000

( To record depreciation on plant and equipment)

T-account

Cash                                                                             Material

Dr___________Cr__                                            __ DR ___________CR

                                                                                   148200     ---

           ---80000                                                          80000   ----    4000

          ---106000                                                            56000 ---

                                                                                                         -- 68000

Work in process                                                              Accounts payable

Dr____________Cr___                                          ___ DR ___________Cr                                                                                                        

33000 ---

4000---                                                                              80000        --  80000

68000--                                                                                               -- 56000

100000---

125000 ---

Wages payable                                                          Factory overhead

Dr ____________Cr__                                          __ Dr _____________Cr

            ---  100000                                                  106000 --

                                                                                50000 --

Applied factory overhead                                    Accumulated depreciation

Dr_____________Cr__                                          _ Dr ___________Cr_

          ---   1250000                                                                ---   50000

Finished goods                                                    Cost of goods sold

Dr_____________Cr__                                          _ Dr ___________Cr_

166000     ---                                                                         ---     263400

                ---   143200  

Material end =?  

Material (end) = 148200 +80000+56000-4000-68000=

Work in process (end) = ?

work in process  = 148200+166000-143200 =171000                                                                                

8 0
3 years ago
HOW DO I GET A GIRL TO LIKE ME HURRY BEFORE THE QUESTION GETS DELETED
antiseptic1488 [7]

Answer:

Tell her that it will take a very long time

Explanation:

3 0
2 years ago
Next year baldwin plans to include an additional performance bonus of 0.25% in its compensation plan. this incentive will be pro
natali 33 [55]
If Baldwin currently pays his employees with $50/hour and he promised to give an additional performance bonus of 0.25% if the productivity goals are reached. Assuming that he has 500 employees, he needs to pay his employees:

$50 * (1+0.0025) = $50.125/hour will be the new rate of each employee,
if he has 500 employees:

500 * $50.125 = $25,062.50 

He has to pay a total of $25,062.50 per hour in total.  
6 0
3 years ago
Read 2 more answers
HELPPP How would entrepreneur apply comfort with risk when developing a product or service ?
andre [41]
Test the product before it launches
7 0
3 years ago
Read 2 more answers
Other questions:
  • Shirine has been debating between two career pathways in finance. She creates a Venn diagram to compare the two careers. In a Ve
    12·1 answer
  • _________obtain goods from manufacturers and sell them to consumers.
    14·2 answers
  • Probably the most critical 'premise' of the marketing concept is that the firms should focus on identifying and satisfying custo
    12·1 answer
  • You are patrolling a company parking lot and see two people trespassing near a car on the lot. you should first:
    12·1 answer
  • You are valuing a common stock that just paid a dividend of $1.25 per share. You are expecting the stock to grow at the rate of
    12·1 answer
  • Mar. 17 Received $275 from Shawn McNeely and wrote off the remainder owed of $1,000 as uncollectible.
    14·1 answer
  • Peggy is in the business of factoring accounts receivable. Last year, she purchased a $30,000 account receivable for $25,000. Th
    9·1 answer
  • Reporting Net Sales with Credit Sales, Sales Discounts, and Credit Card Sales
    15·1 answer
  • Giant Industries has a $674,232 gross operating income, operating expenses of $329,129, and other expenses totaling $38,719. Wha
    12·1 answer
  • The ________ is responsible for monitoring the money supply and the general stability and safety of the u. s. banking system.
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!