Answer and Explanation:
Deferred revenue refers to payment received before the service or goods are delivered. Consider a subscription service that provide annual subscription such as Netflix. You may take the subscription through annual or monthly payment system. In case of annual payment system you have paid for 12 months but are currently on month 1. As a result, the 11 other months’ payment is considered as deferred revenue for Netflix.
Businesses such as this (Netflix) who sell annual subscription will have significant deferred revenue. The current Netflix subscription charges are $10.99 per month (lowest tier). In case of annual subscriptions they will likely have 11 months of deferred revenue or 11*10.99 = $120.89 as deferred revenue. Their total revenue per customer (in the lowest tier) will be $131.88. This makes their deferred revenue as 91.67% of their revenue.
Answer:
The answer is: The excise tax on cola beverages is $2 per case.
Explanation:
Excise taxes are taxes levied on certain goods or services.
In this case the price of cola beverages is $4 per case, since excise taxes are included in the price of the product, then the excise tax on cola beverages = price paid by consumers - price received by producers = $4 - $2 = $2
Answer:
Results are below.
Explanation:
Giving the following information:
Plan A:
Fixed costs= $40,000
Unitary varaible cost= $27
Plan B:
Fixed costs= $54,000
Unitary varaible cost= $26
Selling price per unit= $35
<u>To calculate the break-even point in units, we need to use the following formula:</u>
Break-even point in units= fixed costs/ contribution margin per unit
<u>Plan A:</u>
Break-even point in units= 40,000 / (35 - 27)
Break-even point in units= 5,000
<u>Plan B:</u>
Break-even point in units= 54,000 / (35 - 26)
Break-even point in units= 6,000
Answer:
A. elective surgery due to its lower marginal utility per dollar of expenditure.
Explanation:
As there is non essential elective surgeries, as from government's point of view since it is non essential that is not required and not utilized by major citizens of the country, and since there is requirement of budget cut-down. The government shall remove elective surgery.
as the amount of expenditure involved in these surgeries is also high and the resulting utility for each surgery is really low, it shall be removed.
