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Karo-lina-s [1.5K]
3 years ago
10

Bette's Breakfast, a perfectly competitive eatery, sells its "Breakfast Special" (the only item on the menu) for $5.00. The cost

s of waiters, cooks, power, food etc. average out to $3.95 per meal; the costs of the lease, insurance and other such expenses average out to $1.25 per meal. Bette should:
Business
2 answers:
NISA [10]3 years ago
8 0

Answer:

C. continue producing in the short run, but plan to go out of business in the long run.

Explanation:

Given:

Average cost per meal = $5

The costs of waiters, cooks, power, food etc. = $3.95 per meal

costs of the lease, insurance and other such expenses = $1.25 per meal

Total cost = fixed cost + variable cost

= $3.95 + $1.25

= $5.2

Total cost, $5.2 per meal is greater than cost per meal, which is clearly a loss of $0.2 per meal.

In the long run, Bette will go out of business.

Tamiku [17]3 years ago
4 0

Answer:

Bette's Breakfast should increase the price or change the cost´s structure.

Explanation:

Bette's Breakfast should increase the price to get any profits because the total of the cost of serving that breakfast is higher than the price.  

Profit= price* sales -((Variable cost * sales) +Fixed cost)

Other option is changing the structure of cost per meal.

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Adham is interested to buy a pair of shoes, at Lazzado.com as follows:
nlexa [21]
I think it could either be the first or third option, but I thinking the correct one should be the first option. Hope this helped :)
7 0
3 years ago
Three categories of activities (operating, investing, and financing) generate or use the cash flow in a company. In the followin
borishaifa [10]

Answer:

1. a. A company records a loss of $70,000 on the sale of its outdated inventory. OPERATING ACTIVITY.

Operating activities have to do with the day to day operations of the business.

b. D and W Co. sells its last season's inventory to a discount store. OPERATING ACTIVITY.

This is also a day-to-day operation of the business so it falls under operating activities.

c. DigiIink Printing co. buys new machinery to ramp up its production capacity.  INVESTING ACTIVITY.

Investing activities have to do with the purchase and sale of capital assets such as financial assets in other companies or fixed assets. The machinery purchased here is a fixed asset so this will count as an investing activity.

d. Yum Brands distributes dividends to its common stockholders for the first. FINANCING ACTIVITY.

Financing activities have to do with the long term debt and equity of a company and this includes dividends so this falls under her.

2. Cashflow due to financing activities:

Cash Balance second year =  Cash Balance first year + Cash Flows From Operating Activities + Cash Flows From Investing Activities + Cash Flows From Financing Activities

280 = 180 + 1,053 - 576 + Financing activities

280 = 657 + Financing activities

Financing cashflow = 280 - 657

= -$377 million

6 0
3 years ago
According to equity theory, in order to restore equity or fairness of a work situation a worker may ______. (select all that app
noname [10]

Group of answer choices.

A. try to have the inputs of coworkers increased

B. try to increase the outputs of coworkers

C. try to increase his or her own outputs

D. try to increase his or her own inputs

Answer:

A. try to have the inputs of coworkers increased.

C. try to increase his or her own outputs.

Explanation:

Adam Smith was a Scottish political economist, social and moral philosopher, author and he is famously considered to be the father of modern economics. Smith was born on the 5th of June, 1723 in Kirkcaldy, United Kingdom and he died on the 17th of July, 1790 in Panmure House, Edinburgh, United Kingdom.

The equity theory by Adam Smith helps to measure and strike a balance between the work input and output of a worker.

An equality norm can be defined as a reward system in which the employer or human resource manager decide to compensate or pay the entire workforce the same amount of money without discrimination or favoritism.

Basically, it's paid regardless of individual productivity levels, in order to promote the ability to work effectively in groups.

According to equity theory, in order to restore equity or fairness of a work situation a worker may;

I. Try to have the inputs of coworkers increased.

II. Try to increase his or her own outputs.

8 0
3 years ago
The Pita Pit borrowed $100,000 on November 1, 2021, and signed a six-month note bearing interest at 12%. Principal and interest
Daniel [21]

Answer:

$4,000

Explanation:

The computation of the interest expense is shown below:

= Borrowed amount × rate of interest × number of months ÷ (total number of months in a year)  

= $100,000 × 12% × ( 4 months ÷ 12 months)  

= $4,000

The four months is taken from Jan 2022 to May 2022

We simply applied the simple interest formula to determine the interest expense and the same is shown above

4 0
3 years ago
A customer buys $10,000 of Government Bond Fund shares from Acme Investors, a fund sponsor and broker-dealer. Acme is the sponso
timofeeve [1]

Answer: customer will pay a sales charge

Explanation:

The statement which states that customer will have to pay sales charge in order to exchange shares within the family is not true. The fund family possesses an "exchange feature" at NAV. This means that the shares of one fund has the right to be redeemed and then reinvested in shares of another fund that is within the family without no sales charge.

For the customer that is exchanging Government bond Fund shares for the Growth Fund shares, tax event has occurred. Therefore, it will be expected that the customer's yield will reduce but that the capital gains will increase, because the person is moving from an "income" fund into a "growth" fund.

3 0
3 years ago
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