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zlopas [31]
4 years ago
11

Stephen runs a pet salon. He is currently grooming 120 dogs per week. If instead of grooming 120 dogs, he grooms 121 dogs, he wi

ll add $65.65 to his costs and $65.65 to his revenues. What will be the effect on his profits of grooming 121 dogs instead of 120 dogs? Stephen's profits will change by $ (Enter your response rounded to two decimal places.)
Business
1 answer:
aniked [119]4 years ago
6 0

Answer:

Effect on income= $0

Explanation:

Giving the following information:

He is currently grooming 120 dogs per week. If instead of grooming 120 dogs, he grooms 121 dogs, he will add $65.65 to his costs and $65.65 to his revenues.

Contribution margin per dog= selling price - unitary variable cost

Contribution margin per dog= 65.65 - 65.65= 0

Effect on income= 0*1= $0

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A low P/E for a stock indicates that:
pishuonlain [190]

Answer:

(A). People may expect earnings to fall in the future, perhaps because the firm will be faced with increased competition.

Explanation:

Price Earnings ratio of a company represents market price per share of a company's stock in relation to it's earnings per share.

Price Earnings ratio(PER) is given by the following formula:

PER = \frac{Market\ Price\ Per\ Share}{Earnings\ Per\ Share}

A lower P/E Ratio indicates that a company's market price of a share is lower relative to it's earnings. This means the company's stock is undervalued.

It can also mean that the company's earnings have increased which in turn has increased it's earnings per share.  

Investors in general expect lower earnings in future for the stock of a company with low P/E Ratio.

6 0
3 years ago
Problem 4-4 Calculation of Gain or Loss (LO 4.3) Jocasta owns an apartment complex that she purchased 6 years ago for $750,000.
NemiM [27]

Answer:

$671,300

Explanation:

The calculation of adjusted basis in the building is shown below:-

Adjusted basis = Original cost of the property + Cost of capital improvements - Depreciation claimed

= $750,000 + $50,000 - $128,700

= $800,000 - $128,700

= $671,300

Therefore for computing the adjusted basis we simply add original cost of the property with cost of capital improvements and deduct depreciation claimed.

5 0
3 years ago
If your lifestyle budget is $50000 a year selecting a career earning $75,000 will most likely allow you to meet your lifestyle g
NARA [144]
From what is said the answer is true. that leaves 25000 over your lifestyle budget
8 0
3 years ago
Traditionally, the federal reserve can give emergency loans only to select one:
jeyben [28]
The federal reserve is the central bank of the United States of America. It is considered as an independent bank because it does not need permission from the President to make transactions. Moreover, it does not benefit from the Congress' budget. The federal reserve only gives emergency loans to commercial banks during times of crisis to prevent bankruptcy. 
6 0
3 years ago
Plutonic Inc. had $400 million in taxable income for the current year. Plutonic also had an increase in deferred tax liabilities
Sergeu [11.5K]

Answer:

Increase of 130 million

Explanation:

In this question, we are looking to evaluate what has happened to change in deferred tax assets. We proceed as follows;

Firstly, we calculate the current tax.

Mathematically = 40% of 400 million = 40/100 * 400 million = 160 million

Now, as we can see in the question, a decrease in deferred tax asset resulted in an increase in tax expense to a tune of $50 million

This brings the total tax expense to 160 million + 50 million = 210 million

We can see from the question that the company has only recognized a tax expense of $80 million.

This means that the change in deferred tax asset was an increase of 210 million- 80 million = $130 million

8 0
3 years ago
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