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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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The deadweight loss associated with output less than the competitive level can be determined by A. subtracting the consumer surp
SSSSS [86.1K]

Answer:

C. subtracting the competitive level producer surplus from the producer surplus associated with less output

Explanation:

A deadweight loss refers to a cost to society created as a result of market inefficiency. Market inefficiency occurs when supply and demand are out of equilibrium. It is also known as excess burden.

Deadweight loss is also created due to taxes as they prevent people from purchasing things that they would otherwise as the final price of the product increases.

The deadweight loss associated with output less than the competitive level can be determined by subtracting the competitive level producer surplus from the producer surplus associated with less output

7 0
2 years ago
If Farmer Brown plants no seeds on his farm, he gets no harvest. If he plants 1 bag of seeds, he gets 5 bushels of wheat. If he
klasskru [66]

Answer: d. the production function is unrelated to the marginal product.

Explanation:

production function helps show the relationship between the quantity of inputs used in producing a goods or service and the quantity of output it produces. Example; a bag of seeds produces 5 bushels of seeds.

While marginal output is an increase in the output of the product, when input is when input is constant.

In this case production is in to marginal product.

3 0
3 years ago
Assume Ireland and Mauritania can both produce grain and dates, and that the only limited resource is the farming labor force, m
vesna_86 [32]

Answer:

Mauritania has an absolute advantage in the production of dates

Neither countries have an absolute advantage in the production of grains

Explanation:

A country has an absolute advantage in the production of a good or service if it produces more quantity of a good when compared to other countries

Ireland and Mauritania produces 10t grains. None of the countries have an absolute advantage in the production of grains

Mauritania produces 25t of dates while Ireland produces 5t of dates. 25 is greater than 5, so Mauritania has an absolute advantage in the production of dates

4 0
3 years ago
Over a 10-year period, Rebecca goes to
juin [17]

Rebecca is earning twice as much as Mark because she has added value to herself by getting educated and would most likely be able to solve problems faster and more efficiently than Mark assuming they are in the same industry. Here in lies the value of education.

<h3>How does education help us earn better?</h3>

Education helps to drive innovation and critical thinking. Psychologically, education is one of the best ways to keep the mind active and sharp.

For a society to advance economically, education is essential. In order to consistently be creative, we require employees to pursue new knowledge and research.

Higher literacy rates are also associated with better economic conditions in a nation.

A population with higher levels of education has access to more work options. This is because education fosters research and innovation.

Learn more about education at;
brainly.com/question/24374672
#SPJ1

8 0
2 years ago
Tom and Jerry's has 2.4 million shares of common stock outstanding, 2.4 million shares of preferred stock outstanding, and 14.00
3241004551 [841]

Answer:

Tom and Jerry's

The weight used for common stock in the computation of Tom and Jerry's WACC is:

= 45.22%

Explanation:

a) Data and Calculations:

                                               Common   Preferred    Bonds

                                                  Stock         Stock

Outstanding number               2.4 m         2.4 m         14,000

Market price per share           $13.40      $10.40         $999.6

Total value                               $32.16 m  $24.96 m    $13,994,400

Total value of stock and bonds = $71,114,400

Weight of common stock = $32.16/$71.1144 * 100 = 45.22%

6 0
3 years ago
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