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Alona [7]
3 years ago
10

You are hired as a consultant for a local restaurant. It is considering whether to close at​ 9:00 p.m., stay open an extra hour​

(10:00 p.m.), or close earlier​ (8:00 p.m.). Based on wages and utility​ bills, the added cost​ (the marginal​ cost) of staying open for each additional hour is ​$404.If the additional revenue​ (the marginal​ revenue) during the last hour is ​$444​, the profit earned during the last hour of operation will be​ $ _______.
Business
1 answer:
Lyrx [107]3 years ago
8 0

Answer:

$40

Explanation:

Profit made is the difference between revenue earned and cost incurred by an entity.

Marginal profit is thus a difference between the additional sales during the added time and the additional cost incurred.

As such, for the local restaurant;

Profit earned during the last hour given that for each additional hour is ​$404 and the additional revenue​ (the marginal​ revenue) during the last hour is ​$444​

= $444 - $404

= $40

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On October 31, the end of the first month of operations, Maryville Equipment Company prepared the following income statement, ba
RoseWind [281]

Answer:

Income statement under absorption cost:

Sales Revenue                       7,920,000

COGS 220,000 x 26 =       <u>  (5,720,000)  </u>

Gross profit:                           2,200,000

S&A expense:                          (990,000)          

variable:      330,000

fixed:           630,000           <u>                          </u>

         Operating Income         1,210,000

Explanation:

Variable cost of goods manufactured $6,360,000

Fixed costs: Fixed manufacturing costs $530,000

Under absorption cost, the company will distribute the manufacturing cost over the units produced:

variable manufacturing cost: 6,360,000

fixed manufacturing cost:          530,000

Total cost:                                   6,890,00

Units produced:                          265,000

units sold 220,000

+ ending inventory 45,000

Cost per units:                                      26

 The selling and adminsitrative (S&A) will be count as period cost.

5 0
3 years ago
Information from the financial statements of Henderson-Niles Industries included the following at December 31, 2018: Common shar
zalisa [80]

Answer:

The basic and diluted earnings per share for the year ended December 31, 2018 are $ 0.24 / Share and $8.89 /share respectively.

Explanation:

BASIC EPS CALCULATION

The preferred dividend = 30 million x $ 2/share

                                        = 60 Million

Basic EPS = ( Net income - preferred dividends ) / weighted average common shares

                 = ($840 million - $ 60 Million ) / 100   million

                 = $ 0.24 / Share

DILUTED EPS CALCULATION

After-tax bond interest expense    =   $ 2.200 million x 10%

                                                         = $ 220 Million

$ 220 Million x (100 + 40%) = $ 308 Million after-tax interest expense.

Shares assume converted to common

Common Shares = 100 Million            

Preferred stock = 40 Million

Convertible bonds   = 17.0 Million

Total = 157 Million shares outstanding  

Diluted EPS   = ( $ 840 Million - $60 Million  + $308 Million+ $ 66 Million ) / 157 million  

                       = $8.89 /share

Therefore, The basic and diluted earnings per share for the year ended December 31, 2018 are $ 0.24 / Share and $8.89 /share respectively.

8 0
3 years ago
Traditional home mortgage underwriting is said to rest on three elements, the "three C's." The housing expense ratio is one tool
Tresset [83]

Answer:

The three C's are Collateral, Creditworthiness, Capacity

Explanation:

The underwriters take a risk to loan you for the mortgage for this purpose they need to verify your paperwork so as to determine your eligibility to get a mortgage, which is based on;

  1. Creditworthiness: It is your credit score and your account and payment history. It also includes your previous loans and purchases.
  2. Capacity: It is a check on your ability to repay the loan. It is basically a debt-to-income ratio. The lender goes through your salary, income, expenditure and debts to confirm that you can actually repay the loan.
  3. Collateral: Literally it means an asset of the borrower kept by the lender as a security of safe return of the loan. in case of house mortgage collateral is mostly 20% down payment of the mortgage being received. If the borrower fails to repay the loan the lender seizes collateral to recover the loss.
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Japan has increased the price of rice imported from the united states through a tax on american rice. this is a form of
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This tax is a tariff
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When Zappos focused on aligning and maximizing customer service, distribution, product selection, and other key areas, they were
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Answer:

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