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Whitepunk [10]
2 years ago
12

Product Pricing: Single Product Assume that you plan to open a soft ice cream franchise in a resort community during the summer

months. Fixed operating costs for the three- month period are projected to be $5,650. Variable costs per serving include the cost of the ice cream and cone, $0.50, and a franchise fee payable to Austrian Ice, AG, $0.15. A market analysis prepared by the Austrian Ice indicates that the summer sales in the resort community should total 24,000.
Required: Determine the price should charge for each ice cream cone to achieve a $20,000 profit for the three-month period.
Business
1 answer:
Rasek [7]2 years ago
8 0

Answer:

$1.71

Explanation:

The computation of sales per unit is shown below:-

Variable cost = Total units × (Cost of ice cream and cone + Franchise fee payable)

= 24,000 × ($0.50 + $0.15)

= 24,000 × $0.65

= $15,600

Total cost = Fixed cost + Variable cost

= $5,650 + $15,600

= $21,250

Sales = Total cost + Profit

= $21,250 + $20,000

= $41,250

Sales price per unit = Sales ÷ Community total

= $41,250 ÷ 24,000

= $1.71

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irinina [24]

In monopolistic competition, what effect do price variations generally have on the market as a whole?

It's no effect. 
4 0
3 years ago
i need help ASAP!!!! Generally, parties of 8 or more require many restaurants to include gratuity of 18% on the check before pre
igor_vitrenko [27]

Answer:

b)$34.45

Explanation:

Gratuity is similar to a service charge.

If the bill is $191.40, and gratitude of 18 percent will be added.  

The actual gratitude amount that will be added will be equal to

18% of the $191.40 bill.

=18/100 x $191.40

=0.18 x 191.40

= $34.45

4 0
2 years ago
Regina Corp. is a property and casualty insurance company in its third year of operations and has a net loss of $100,000. Regina
sergejj [24]

Answer:

$24,000

Explanation:

Total Taxable income of first and second year = $10,000 + $30,000 = $40,000

Net loss in 3rd year = $100,000  

Net Operating loss carry back = Regina Taxable income Total of first and second year of operations

Net Operating loss carry back = $40,000

Net Operating loss Carry forwards = Net loss - Net Operating loss carry back

Net Operating loss carry forward = $100,000 - $40,000

Net Operating loss carry forward = $60,000

Income tax rate = 40%

Income tax benefit from the Net Operating loss carry forward = Net Operating loss carry forward * Income tax rate

Income tax benefit from the Net Operating loss carry forward = $60,000 * 40%  

Income tax benefit from the Net Operating loss carry forward = $24,000 .

6 0
3 years ago
Suppose that the government of Ping's country hears of the working conditions and the country seizes the Quality Dragon plant wh
ella [17]

Answer: a. expropriation

Explanation:

Expropriation happens when privately owned property are forcefully taken by government for it to be used by the general public. It is an act of depriving people of their right to property, although expropriation is to the advantage of the general public. In most countries especially in the US expropriation occurs when there is a need to embark on certain infrastructural project such as airports, railroads, etc.

6 0
2 years ago
John works part-time for a moving company and earns a total of $116 each weekend. A friend invites him to go on a cruise next we
adell [148]

Answer: $116

Explanation: Opportunity cost refers to the loss of profit by an individual or a firm when one chooses to go for best alternative instead of the second best alternative.

In the given case, John has two alternatives and if he chooses to go on the trip it would cost him the loss of $116 salary that he receives.

Thus the opportunity cost of going on the trip would be $116.

5 0
2 years ago
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