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andre [41]
3 years ago
5

Each day, Tasty Tortilla Company incurs total costs of $8,000 to process flour into tortillas. The company can then sell the tor

tillas as is for total daily revenue of $22,500. Alternatively, Tasty can fold and fry the tortillas to make hard taco shells. The additional costs for making the taco shells are $4,200 per day, and the total daily revenues from the finished shells are $26,700. Given these figures,
A : the firm will make an additional $8,000 in income per day if it sells tortillas instead of taco shells.

B : the firm’s income will remain unchanged whether it sells tortillas or taco shells.

C : the firm will make an additional $4,200 in income per day if it sells taco shells instead of tortillas.

D : the firm will make an additional $14,500 in income per day if it sells taco shells instead of tortillas.
Business
1 answer:
mars1129 [50]3 years ago
3 0

Answer:

B: the firm's income will remain unchanged whether it sell tortillas or taco shells

Explanation:

The firm's income will still be the same because additional cost are incurred when producing the taco shells see below for calculation

When the firm processes tortillas: it makes a revenue of $22,500 and a cost of $8,000 realizing a profit of $14,500.

When the firm decides to fry the tortillas to make hard taco shells: it makes a revenue of $26,700 and total cost of $12,200 ($8,000+$4,200) then realizing a profit of $14,500.

Thus, the reason the profit won't change is because the firm incurred additional cost in processing the taco shells.

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An investment should be undertaken A) if the present value of the expected income stream associated with the investment is great
Alona [7]

Answer:

A) if the present value of the expected income stream associated with the investment is greater than the full cost of the investment project.

Explanation:

It is when the present value of the expected income stream associated with the investment is greater than the full cost of the investment project that the project is profitable. Most investments are undertaken with the aim of making profits.

The net present value can be used to determine if the present value of the expected income stream associated with the investment would be greater than the full cost of the investment project.

3 0
3 years ago
Every year, 7 Days, a large retail chain, organizes a large annual function in which it gives an "Employee of the Year" award to
Simora [160]

Answer:

E) ceremonies

Explanation:

In an organization's culture, ceremonies are extremely important for what they represent, not necessarily for the monetary amount of a price. A ceremony is a formal event and in this case it occurs in front of almost all the employers of the retail chain. The employee that is awarded the prize is not only given money, he/she is also being recognized for being the employee of the year in front of everyone else.

5 0
3 years ago
Read 2 more answers
Rachel receives employer-provided health insurance. The employer's cost of the health insurance is $5,600 annually. What is her
kati45 [8]

Answer:

$4,424

Explanation:

Calculation for her employer's after-tax cost of providing the health insurance

Using this formula

After-tax cost =Annually employer's cost of health insurance -(=Annually employer's cost of health insurance*Marginal tax rate)

Let plug in the formula

After-tax cost =$5,600- ($5,600 × 21%)

After-tax cost =$5,600- $1,176

After-tax cost =$4,424

Therefore her employer's after-tax cost of providing the health insurance is $4,424

8 0
2 years ago
As jamal's income rises, his demand for pizza does not change. it follows that, for jamal, pizza is a(n)
irga5000 [103]
<span>The pizza is a neutral good. A neutral good is a good whose demand is not changed even though the income provided by the good is changed. A person's income can go either up or down, but their desire to buy more or less of Jamal's pizza will not change, so pizza sales will not go up or down. Demand and income are not tied to each other.</span>
8 0
3 years ago
At December 31, Hawke Company reports the following results for its calendar year. Cash sales $ 1,285,070 Credit sales $ 3,610,0
Lady_Fox [76]

Answer:

Explanation:                                              Dr                      Cr

1)

Allowance for doubtful account

3%*3610000                                                                    108300

Bad debt expense                                  108300

2)Allowance for doubtful account

2%*(1285070+3610000)                                                 146,852.10

Bad debt expense                                 146,852.10

3)Allowance for doubtful account

1093830*6%                                                                       65,629.80

Bad debt expense                                    65,629.80                

7 0
3 years ago
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