Answer:
a) 120 skiers per day
b) 6.25% increase in revenue
Explanation:
a) If the average skier stays 10 days, the average turnover is 1/10 of the skiers per day, or 1200/10 = 120 skiers per day.
__
b) For a stay of n days, the average skier spends ...
50 +(n-1)30 = 20 +30n
and the average spending per day is ...
(20 +30n)/n = (20/n) +30
So, for a 10-day stay, the average skier spends in restaurants ...
20/10 +30 = 32 . . . . per day
And for a 5-day stay, the average skier will spend ...
20/5 +30 = 34 . . . . per day
The change in restaurant revenue is expected to be ...
(34 -32)/32 × 100% = 2/32 × 100% = 6.25%
Restaurant revenues will be 6.25% higher compared to last year.
Answer:
The company should accept the idea because profit will increase by $24,000.
Explanation:
A company is currently selling 10,000 units of product monthly for $40 per unit.
The unit contribution margin is $27.
The company believes that spending $50,000 per month on advertising will allow them to increase the selling price to $45 and that sales will increase by 750 units per month.
The unit contribution margin is the difference between selling price and variable cost per unit.
An increase in the selling price of $5 will cause the contribution margin to increase by $5, from $27 to $32.
Profits is the product of contribution margin and number of output.
At initial price, the profit was
= 
= $270,000
At the new price the profit will be
= 
- $50,000
= $344,000 - $50,000
= $294,000
The increase in profit
= $294,000 - $270,000
= $24,000
Answer: c. is made by a cash settlement based on the index value
Explanation:
Stock index futures are settled by cash sort of like index options.
This means that there is no delivery of the actual underlying asset at the end of the contract.
The cash / profit is determined by the starting and ending prices of the futures contract.
Answer:
Change "achieved phenomenal success" to "improved customer satisfaction."
Explanation:
This is because it has to do with customers services and from an end customer’s point of view to evaluate current perspectives, emerging needs and preferences, and it's impact on business outcomes.
Answer:
$940,000
Explanation:
The computation of the general and administrative expense is shown below:
= Legal and audit fees + rent for office space × basis
= $580,000 + $720,000 × 50%
= $580,000 + $360,000
= $940,000
In order to find out the general and administrative expense we simply added the legal & audit fees and the rent for office space so that the correct amount could arrive
