A good example of central planning at work in the U.S. would be: Select one:

Hickory point amusement park sells admission tickets for $50 per person for one visit. variable costs are $15 per visitor and fi

Kay [80]

First, calculate for the total operating cost of the park through the equation,

TC = TV + TF

where TC is the total cost,
TV is the total variable cost which is equal to the product of the variable cost per visitor and number of visitor, and
TF is the total fixed cost.

Substituting the known values,
TC = ($15)(1,750,000) + $60,000,000 = $86,250,000

Then, the total revenue is the product of the cost of ticket and the number of visitors.
TR = ($50/visitor)(1,750,000 visitors) = $87,500,000

Subtracting the two values will give us an answer of $1,250,000.

ANSWER: $1,250,000

4 0

3 years ago

Which of the following would be classified as a short-run decision? A restaurant's decision to increase the number of patrons it

podryga [215]

Answer:

A university's decision to add a new residence hall. A trucking firm's decision to move to a smaller facility.

Explanation:

Short run decision affects variable factor only. Adding a new facility is a long run decision. Hence a firm's decision to decrease the amount of electricity used in day-to-day operations by encouraging employees to adopt conservation strategies is a short run decision.

Hence, the correct answer would be:

A university's decision to add a new residence hall. A trucking firm's decision to move to a smaller facility.

4 0

3 years ago

Assume you have two projects with different lives. Project A is expected to generate present value cash flows of $5.2 million an

Alex787 [66]

Answer:

$1,033,190.69 ; better

Explanation:

Given:

Present value of cash flow of Project A (PV) = $5,200,000

Maturity (nper) = 7 years

Required return (rate) = 9%

Annual annuity (pmt) can be computed using spreadsheet function =pmt(rate,nper,PV,FV). Substituting the values, we get,

=pmt(0.09, 7, -5200000)

=$1,033,190.69

FV is 0. Present value is negative as it's cash outflow.

Annual annuity of Project A is $1,033,190.69

Project B:

Given:

Present value of cash flow of Project A (PV) = $3,800,000

Maturity (nper) = 5 years

Required return (rate) = 9%

Annual annuity (pmt) can be computed using spreadsheet function =pmt(rate,nper,PV,FV). Substituting the values, we get,

=pmt(0.09, 5, -3800000)

=$976,951.34

FV is 0. Present value is negative as it's cash outflow.

Annual annuity of Project B is $976,951.34

Annual annuity of Project is more than that of Project B, So Project A is better than Project B.

8 0

3 years ago

Francisco leased equipment from Julio on December 31, 2021. The lease is a 10-year lease with annual payments of $159,000 due on

vodomira [7]

Answer: $789855

Explanation:

Initial liability = $1,006,192

Less: Payment = $159,000

Liability = $847192

× Implicit rate 12%

Interest = 12% × $847192 = $101663

Then, reduced balance will be:

= Payment - Interest

= $159,000 - $101663

= $57337

Therefore, Francisco lease liability at December 31, 2022 will be:

= $847192 - $57337

= $789855

4 0

3 years ago

a college in a metropolitan area wishes to increase its evening offerings of business-related courses such as marketing, account

SSSSS [86.1K]

Answer:

Target markets are management and business students looking forward for employment and full year courses.

Explanation:

The target market can be those who are working full time in the day and may also include the small and medium business owners that intend to provide some sort of online cloud computing set up for the college, and

It may be the students that want to continue their higher education and pursuing a full degree. These may also include the off-campus students that are interested in doing professional courses.

5 0

3 years ago