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mezya [45]
3 years ago
12

Suppose that in the second year her average total cost per dog is $35 and that $20 of that is associated with the variable cost.

She finds that the market price for dog grooming has fallen, however, to $30 per dog. Should she stay open or close the business? Briefly explain your answer.
Business
1 answer:
jok3333 [9.3K]3 years ago
6 0

Answer:

She should stay open, because the revenue of from dog grooming ($30 per dog), is still high enough to cover her variable cost of $20 per dog, even though she is operating at a loss.

Explanation:

Profit = Revenue - Total costs

Total costs = Fixed costs + variable costs

Profit = $30 - $35 = -$5 per dog

This shows she is operating at a loss of $5 per dog.

If a company does not make enough revenue to cover its total costs, then it is operating at a loss.

However such a company must consider its variable cost before deciding whether to shut down.

A company should only shut down if it is unable to make enough revenue to cover its variable cost.

If a company is operating at a loss but can at least cover its variable cost, then it should stay open at least in the short run.

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TravelLite and FareLine compete as online travel agencies. Historically, TravelLite has focused more on flights, whereas FareLin
DENIUS [597]

Answer:

16.80% and 39.43%

Explanation:

The formula to compute the net profit margin is shown below:

Net profit margin = Net income ÷ Total revenues × 100

For Travel lite, the net profit margin is

= $1,080 ÷ $6,430 × 100

= 16.80%

And, for fare line, the net profit margin is

= $3,020 ÷ $7,660 × 100

= 39.43%

By dividing the net income or net profit by the total revenues we can get the net profit margin or we can say it is profit percentage that is earned by the company

It is always expressed in percentage

6 0
3 years ago
The accounting records of Whispering Winds Corp. show the following data. Beginning inventory 3,010 units at $6 Purchases 8,130
Sindrei [870]

Answer:

$66,700

b. LIFO = $70800

67807.81

Explanation:

LIFO means last in first out. It means that it is the last purchased inventory that is the first to be sold.

(8130 x 8) + [(9090 - 8130) x 6) = 70800

FIFO means first in, first out. It means that it is the first purchased inventory that is the first to be sold

(3010 x 6) + [(9090 - 3010) x $8] = 66,700

Average cost = [(3010 x 6) + (8130 x 8)] /

18060

48640

b 65040

5760

7 0
3 years ago
find the accumulated amount at the end of 9 months on an $800 deposit in a bank paying simple interest at a rate of 6% per year.
Valentin [98]

As per the given figure, after calculating the accumulated amount, the figure that has been arrived is $1,232.

<h3>What is the accumulated amount?</h3>

Accumulated value or accumulated amount, both are synonyms. It is used to refer to the cash value. Basically, this means there is an easy way of calculating the accumulated value.

All one has to do is to find the total or the sum of the initial investment and, in that addition, the interest which has been earned till date will be added. Formula for calculating the simple interest is

Accumulated amount =Principal amount (1+rate * time)

Here Principal amount = $800,    rate= 0.06,   time=9 months

Accumulated amount = 800 (1+(0.06*9) = 800 (1+ 0.54 ) =  $1,232.

Thus, the accumulated amount for the given data is $1,232.

Learn more about accumulated amount from here:

brainly.com/question/12903532

#SPJ4

7 0
1 year ago
Concord Corporation’s balance sheet at the end of 2019 included the following items. Current assets (Cash $82,000) $236,770 Curr
xenn [34]

Answer:

Cash flow generated for the year: 71,790

Explanation:

From the information given we use the indirect method, we adjust net income for the non-monetary terms and then, adjust for the changes in working capital

The sale of assets will be enter under investing activities for the cash received regardless of the gain/loss at disposal

the stock transactions are considered financing from the firms perspective.

<u>Operating Activities:</u>

Net income           60,100

depreciation          16,540

loss at disposal          230

(21,770 - 9,770 = 12,000 against 11,770)

amortization            2,500

adjusted income:                        79,370

<em>changes in working capital:</em>

increase in current assets:        (29,000)

increase in current liabilities:  <u>     14,770  </u>

net change in working capital     14,230

from operating activities:            93,600

<u>Investing Activities</u>

sale of equipment                    11 ,770

purchase of stocks                 (16,000)

Building improvements        <u>  (28,770)  </u>

from investing activities         (33,000)

<u>Financing Activities</u>

Issuance of bonds payable     52, 190

Cash dividends                       (30,000)

Purchase of treasury Stocks <u>  (11, 000)   </u>

from financing activities           11,  190

Cash flow generated for the year:

93,600 - 33,000 + 11,190 = 71,790

5 0
3 years ago
Mr. smith has an income of $40,000 this year and $60,000 next year. he can invest in a project that costs $30,000 this year, whi
Phoenix [80]

The income and expenses Mr. Smith Incurs this year:

Income: $40,000

Project Cost this year: $30,000

Consumes: $50,000

Consumption this year = $40,000 - $30,000 - $50,000

Consumption this year = -$40,000

Future value of the conumption this year = -$40,000*1.1 = -$44,000

Consumption next year:

Income : $60,000

Income from the project: $36,000

Total income next year = $96,000

Consumption next year = -$44,000 + $96,000

<u>Consumption next year = $52,000</u>

Thus consumption next year is $52,000

6 0
3 years ago
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