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garri49 [273]
3 years ago
6

Economics Airlines currently spends $20,000 per month in airport fees and $10,000 per flight for fuel, crew, and airplane mainte

nance. Economics Airlines currently offers 5 flights from State College to Detroit and is considering offering a 6th. If each seat ticket costs $500, how many customers must fly on the 6th flight in order for Economics Airlines to be willing to run it?
a. 60
b. 20
c. 10
d. 40
Business
1 answer:
Kamila [148]3 years ago
3 0

Answer:

b. 20

Explanation:

For 5 flights per month

Total Cost = Variable cost + Fixed cost

Total Cost = Fuel, crew, and airplane maintenance cost + Airport fee

Total Cost = (5 X 10000) + 20,000 = $70,000

For 6 flights per month

Total Cost = Variable cost + Fixed cost

Total Cost = Fuel, crew, and airplane maintenance cost + Airport fee

Total Cost = (6 X 10000) + 20,000 = $80,000

Additional Cost for 6th flight = $80000-70,000 = $10,000

Minimum No. of Passenger to cover the cost = Additional cost / Ticket price per seat

Minimum No. of Passenger to cover the cost = $10,000 / $500 = 20 seats passengers.

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A capital budgeting project is expected to have the following cash flows: Year Cash Flows 0 -$850,000 1 $300,000 2 $400,000 3 $5
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The capital budgeting project's net present value at an 18% required rate of return is <u>($4,200).</u>

<h3>What is the net present value?</h3>

The net present value represents the net discounted value of cash inflows after subtracting the present value of cash outflows.

The net present value can be determined by determining the present values of cash inflows and outflows and netting the two values.

<h3>Data and Calculations:</h3>

Required rate of return = 18%

Project period = 3 years

Year    Cash Flows    PV Factor        Present Value

0         -$850,000            1                    -$850,000 ($850,000 x 1)

1           $300,000         0.847               $254,100 ($300,000 x 0.847)

2         $400,000          0.718               $287,200 ($400,000 x 0.718)

3         $500,000        0.609               $304,500 ($500,000 x 0.609)

Net present value                                ($4,200)

Thus, the capital budgeting project's net present value at an 18% required rate of return is <u>($4,200)</u>.

Learn more about the net present value at brainly.com/question/13228231

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8 0
1 year ago
Apple Inc. is the number one online music retailer through its iTunes music store. Apple sells iTunes gift cards in $15, $25, an
trapecia [35]

Answer:

cash             20,000,000 debit

     unearned revenue        20,000,000 credit

Explanation:

Record the advance collection of $20 million for iTunes gift card.

When a gift card is sold, Apple Inc assume the obligation of latter provide iTunes in the near future or do  cash reimbursement therefore; this isn't revenue. It is a liability. Apple will generate revenue when the gift ard are redeem not at sale.

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Answer:

d. the business judgment rule will not apply.

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A corporation can be defined as a corporate organization that has facilities and owns or controls assets used for the production of goods and services in at least one country other than its headquarter (home office) located in its home country.

One of the advantage of a corporation is that, owners have limited liability for debt to the extent to which they have invested and as such are not personally liable for some of debt owed by corporation.

A manager can be defined as an individual who is saddled with the responsibility of providing guidance, support, supervision, administrative control, as well as acting as a role model or example to the employees working in an organization by being morally upright.

Generally, managers are typically involved in taking up leadership roles and as such are expected to be build a strong relationship between their employees or subordinates by creating a fair ground for effective communication and sharing of resources and information. Also, they are required to engage their staff members (entire workforce) in the most efficient and effective manner.

In Business management, if a court of competent jurisdiction determines that a manager's corporate decision amounted to self-dealing i.e putting his or her own interests first, the business judgment rule will not apply.

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Wut 9in pluss ton please answer nowww
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Learn how to spell 'what' and 'Plus'

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In a compensatory stock option plan for which the grant and exercise dates are different, the stock options outstanding account
NeTakaya

Answer:

The correct answer is D

Explanation:

The compensatory stock option is the option which is given or provided to the employee, providing the ability for purchasing the certain number of the shares of the company at the price which is the pre- determined one along with the pre- determined range of the date.

And the stock options which have the outstanding account that should be decreased or reduced at the date of exercise.

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