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MArishka [77]
3 years ago
7

A national restaurant chain has just opened a sit-down location at Chicago’s O’Hare International Airport. Next to the sit-down

location, it has also established a "to-go" section where travelers can purchase premade sandwiches and salads, as well as drinks and snacks. Which dimension of the customer utility function is particularly emphasized with the "to-go" section?
Business
1 answer:
Wewaii [24]3 years ago
6 0

Answer:

Timing.

Explanation:

The establishment of the to-go section by the national restaurant chain is an example of customer utility of time.

The premade sandwiches, salads, drinks, and snacks save the customer time he would have spent waiting for it to be prepared.

So instead of waiting for example 20 minutes for a sandwich, in just about 1 minute customers can pay for their sandwich.

You might be interested in
If Highway 55 Studios can reduce fixed expenses by ​, by how much can variable expenses per unit increase and still allow the co
solniwko [45]

Answer:

$2.25

Explanation:

Please check the attached image for the full question used in answering this question

Breakeven sales is the quantity sold at which net income is equal to zero.

Breakeven sales = fixed cost / (price per unit - variable cost per unit )

$1,215,000 / ($80 - $35) = 27,000

If Highway 55 Studios can reduce fixed expenses by $60,750, variable cost =

27,000 = ($1,215,000 - $60,750) / ($80 - V)

27,000 = 1,154,250 / ($80 - V)

V = $37.25

Variable cost would increase by  : $37.25 - $35 = 2.25

8 0
3 years ago
Times-Roman Publishing Company reports the following amounts in its first three years of operation: ($ in thousands) 2021 2022 2
SVETLANKA909090 [29]

Answer: Unearned subscription revenue.

Explanation:

Tax is made on a cash basis which means that a transaction is eligible for taxation once cash has been paid for it. Businesses however have to use the Accrual basis which only record transactions in the period that they have been incurred.

In this scenario, there is more subscription payment in cash than the company recognized which means that the company has not yet delivered the service they were paid for and so could not recognize the subscriptions. They will however be taxed on those amounts because the cash has come in.

The account giving this temporary difference is therefore the Unearned Subscription Revenue account.

8 0
2 years ago
Yappy Company is considering a capital investment of $320,000 in additional equipment. The new equipment is expected to have a u
Eddi Din [679]

Answer:

a. 4.92 years

b. NPV = $26,770.20

c. 1.0837

d. IRR = 12.26%

e. 15.6%

the project should be accepted

Explanation:

Payback calculates the amount of time it takes to recover the amount invested in a project from it cumulative cash flows

Payback period =  Amount invested / cash flow = $320,000  / $65,000 = 4.92 years

Net present value is the present value of after tax cash flows from an investment less the amount invested.    

Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested

NPV and IRR can be calculated using a financial calculator

Cash flow in year 0 = $-320,000

Cash flow each year from year 1 to 8 = $65,000

I = 10%

NPV = $26,770.20

IRR = 12.26%

profitability index = 1 + (NPV / Initial investment) = 1 + ($26,770.20 / $320,000 ) = 1.0837

The project should be accepted because the NPV and profitability index are positive. the IRR is greater than the discount rate. this means that the project is profitable. Accounting rate of return = Average net income / Average book value

Average book value = (cost of equipment - salvage value) / 2 = $320,000 / 2 = $160,000

$25,000 / $160,000 = 0.156 = 15.6%

To find the NPV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

To find the IRR using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button and then press the compute button.  

7 0
3 years ago
The title of this talk is “Profit’s Not Always the Point.” But do you think profit is an added perk for companies that make the
Fantom [35]

Explanation:

<h2><em><u>The title of this talk is “Profit's Not Always the Point.” But do you think profit is an added perk for companies that make the effort to promote positive social change? Explain. Yes, if you can promote social change and make money it is great. Their doing what they said they would and making money.</u></em></h2><h2 />
7 0
3 years ago
A stock’s price fluctuations are approximately normally distributed with a mean of $29.51 and a standard deviation of $3.87. You
Ivahew [28]

Answer:

$34.46

Explanation:

In this Question there is Highest value of 10% and the probability of 90%.

we will use following formula to calculate the highest value of the stock

z value = ( x - mean ) / Standard deviation

where

x = the highest value

z score value at 10% = 1.28

Placing value in the formula

1.28 = ( x - $29.51 ) / $3.87

1.28 x $3.87 = x - $29.51

$4.9536 = x - $29.51

x = $4.9536 + $29.51

x = 34.4636

8 0
3 years ago
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