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natulia [17]
3 years ago
15

Links Golf Course is planning for the coming golfing season. Investors would like to earn a​ 10% return on the​ company's $60,00

0,000 of assets. The company primarily incurs fixed costs to groom the greens and fairways. Fixed costs are projected to be​ $32,000,000 for the season. About​ 600,000 rounds of golf are expected to be played each year. Variable costs are about​ $15 per round of golf. Links Golf Course is a​ price-taker and will not be able to charge more than its​ competitors, who charge​ $75 per round of golf. Compute the operating profit that will be earned.Select one:A. $6,000,000B. $46,800,000C. $87,800,000D. $5,800,000E. none of the above
Business
1 answer:
Y_Kistochka [10]3 years ago
6 0

Answer:

Option (E) is correct.

Explanation:

Revenue at the competitor price:

= Rounds of golf are expected to be played each year × Charge per round

= 600,000 × $75 per round

= $45,000,000

variable Cost:

= Rounds of golf are expected to be played each year × Variable cost per round

= (600,000 × $15)

= $9,000,000

Contribution Margin:

= Revenue at the competitor price - variable Cost

= $45,000,000  - $9,000,000

= $36,000,000

Less: Fixed Costs = 32,000,000

Operating profit:

= Contribution Margin - Fixed Costs

= $36,000,000 - $32,000,000

= $4,000,000

So, the operating profit is $4,000,000.

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Hardy lumber has a capital structure that includes bonds, preferred stock, and common stock. which one of the following rights i
Vitek1552 [10]
The correct answer is B) Right to share in company profits prior to other shareholders
7 0
3 years ago
Kearney, Inc., makes kitchen tools. Company management believes that a new model of coffee grinder would sell well at a price of
IRINA_888 [86]

Answer:

$0.15 hours per unit

Explanation:

Given that

Direct material cost = $16

Assume Direct labor cost = X

Manufacturing overheads = $18

Profit margin = 20%

Direct labor per hour cost = $28

The computation of direct labor-hour input is shown below:-

Total manufacturing cost = X + $34

Total cost of goods sold = (X + $34) × 1.7 = $66

Direct labor cost per unit

= (X + $34) = $38.82

= $38.82 - $34

= $4.32

Direct labor hours per unit = Direct labor cost per unit ÷ Direct labor per hour cost

= $4.32 ÷ $28

= $0.15 hours per unit

3 0
3 years ago
A bond with 25 years to maturity, 7% coupon, quoted on a 6.25% basis is callable in 10 years at 103, 15 years at 102, and 20 yea
eduard

Answer: 10 years to call

Explanation:

Maturity period = 25 years

Coupon rate = 7%

6.25% basis is,

  • Callable in 10 years at 103
  • Callable in 15 years at 102
  • Callable in 20 years at par

This bond is considered as premium bond. Therefore, in case of premium bonds, Yield to call will be lower than the yield to maturity. Here, the question is which call date should be utilized. According to the rule of thumb, it states that always use the term that is nearest to the whole call date.

Hence, on the customer's confirmation, the dollar price quoted must be based on 10 years to call.

8 0
3 years ago
During the current year, the company purchased equipment for $212,000 on October 1. It is estimated the equipment will have a us
qwelly [4]

Answer:

$6250

$5000

$5250

Explanation:

Straight line depreciation expense = (Cost of asset - Salvage value) / useful life

($212,000 - $12,000) / 8 = $25,000

The machine was used for only 3 months in the fiscal year. Thus, the depreciation expense = $25,000 x (3/12) = $6250

Activity method based on output = (output produced that year / total output of the machine) x (Cost of asset - Salvage value)

(1000 / 40,000) x ($212,000 - $12,000) = $5000

Activity method based on hours worked = (hours worked that year / total hours of the machine) x  (Cost of asset - Salvage value)

($212,000 - $12,000) x (525 / 20,0000)  = $5250

7 0
3 years ago
Although the number of people employed in manufacturing in the united states has decreased since 1950, each person is now produc
gogolik [260]

The statement mentioned above regarding  manufacturing in the United States is true.

<h3>What is manufacturing?</h3>

Manufacturing refers to the changing or conversion of the raw material into finished products and deliver it to the customers directly or indirectly. The manufacture of the products in order to maximize their profits and satisfy the needs of the customers.

More young individuals entering the industrial industry could have a significant impact on the manufacturing growth in the United States. Young people use their creativity and knowledge to increase the production.

The number of people has increased in manufacturing sectors. Therefore, it can be concluded that the statement mentioned above is true.

Learn more about manufacturing here:

brainly.com/question/13740503

#SPJ4

5 0
2 years ago
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