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Leviafan [203]
3 years ago
12

Starbucks is hoping to make use of its excess restaurant capacity in the evenings by experimenting with selling beer and wine. I

t speculates that the only additional costs are hiring more of the same sort of workers to cover the additional hours and costs of the new line of beverages. What hidden costs might emerge?
Business
1 answer:
damaskus [11]3 years ago
7 0

Answer: The main costs that they would have apart from the personnel, are the training, new purchases of supplements, depreciation for new equipment and advertising expenses.

Explanation: The trainings would be for them to learn how to serve wine and beer, the public will change and demand other types of music, perhaps it has to be live, however the main expense It would be in marketing to tell the usual consumers that not only coffee will be sold in their establishments.

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For the coming year, Belton Company estimates fixed costs of $60,000, the unit variable cost of $25, and the unit selling price
NeTakaya

Answer:

1. Break even point in units = 2,400 units

2. Sales required = 6,400 units

3. Operating income = $140,000

Explanation:

Given:

Fixed costs = $60,000

Variable cost =$25 per unit

Selling price = $50 per unit

Computation:

1. Break-even point in units of sales.

Contribution per unit = sales - VC

Contribution per unit = $50 - $25

Contribution per unit = $25

Break even point in units = Fixed costs / Contribution per unit

Break even point in units = $60,000 / $25

Break even point in units = 2400 units

2. Unit sales required to realize operating income = $100,000

Sales required = (Fixed costs + Operating income) / Contribution per unit

Sales required = ($60,000 + $100,000) / $25

Sales required = 6400 units

3. Operating income if sales total = $400,000

Contribution margin = [$25/ $50]100 = 50%

Operating income = Contribution margin - Fixed costs

Operating income = ($400,000 × 50%) - $60,000

Operating income = $140,000

5 0
3 years ago
A stock will pay no dividends for the next 3 years. Four years from now, the stock is expected to pay its first dividend in the
vesna_86 [32]

Answer:

$24.59 or $24.6 or $25

Explanation:

Value of the share is the present value of dividend associated with that share. We need to calculate the present value of each dividend at year 2 and add them to determine the value of the share.

As given there is no dividend for 3 years,next dividend of $2.4 dividend will be discounted for two years and $3 dividend for three years. After that we need to calculate the  present value using DVM and discount this value for 4 years.

Value of Stock = [ $2.4 (1+14%)^-2 ] + [ $3 (1+14%)^-3 ] + [ $3(1+5%) / (14%-5%) ] x (1+14%)^-4

Value of Stock = $1.85 + $2.02 + $20.72 = $24.59

8 0
3 years ago
If a firm was receiving subsidies from its government to produce and lower its operating costs, what may happen when going to se
Vinil7 [7]

Answer:

Government subsidies some countries soften bed

6 0
3 years ago
Several years ago, Black & Decker purchased General Electric's small appliances product line. Black & Decker purchased t
TEA [102]

Answer:

The correct answer is b. Cash Cow.

Explanation:

Multinationals look beyond their core business for additional sources of income to increase their income statement. Secondary income is those from products or services that differ from the main ones within a business. And despite their name, they can play a leading role in a brand's strategy and can give a vital boost to a company's revenue.

4 0
3 years ago
At year-end, Yates Company estimates that $1,500 of its accounts receivable balance is uncollectible. Yates uses the allowance m
zimovet [89]

Answer:

debit to Bad Debts Expense and credit to Allowance for Doubtful Accounts

Explanation:

The journal entry needed to record the adjusting entry by using the allowance method is given below:

Bad debt expense    

                 To Allowance for doubtful debts

(Being bad debt expense is recorded)

Here the bad debt expense is debited as it increased the expense and credit the allowance as it decreased the assets

5 0
3 years ago
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