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Yanka [14]
2 years ago
10

A tour company is planning a bus trip to a local museum. The company will lease a bus from a local bus owner for $400 and estima

tes that it will spend $15.00 per person for admission and lunch.
1. Which of the following volume/price alternatives will allow the firm to avoid losing money on the trip?
A. 20 customers at $30.00 each.
B. 30 customers at $27.50 each.
C. 40 customers at $25.00 each.
D. 50 customers at $22.50 each
E. 60 customers at $20.00 each.
Business
1 answer:
iVinArrow [24]2 years ago
8 0

Answer:

C. 40 customers at $25.00 each

Explanation:

<em>To avoid losing money on the Trip the total contribution from the trip should be equal to the fixed cost of $400 for car rent</em>

<em>contribution/person = price per trip - admission and lunch cost</em>

<em>Break even number of person = Fixed cost/cont per person</em>

     contribution/person           minimum no of person to cover Fixed cost

A         15                                           400/15=  26.7          

B         12.5                                       400/12.5  =32

C           10                                       400/ 10    =40

D           7.5                                    400/ 7.5   = 53.

E           5                                            400/ 5  = 80

<em>From the table above it is obvious that at a price of $25 and having  40 persons the fixed cost would be covered and no loss would be made.</em>

<em />

C. 40 customers at $25.00 each

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Explanation:

Data provided in the question:

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Chances of paint fume killing the painter = 0.01%

Now,

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or

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Answer:

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the free market value in 10 years = ($27,500 x (1 + 2%)¹⁰) / 10% = $335,223

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6 0
3 years ago
Suppose two types of consumers buy suits. Consumers of type A will pay $100 for a coat and $50 for pants. Consumers of type B wi
n200080 [17]

Answer:

The firm will not sell any bundle, the amount of bundle to be sold will be zero.

Explanation

Solution

Since firm sells at $25 each for coats and pants, then If consumer wants to purchase both Pant and Coat, the customer will have to pay 25 + 25 = $50.

Also, If consumer purchase Pant and Coat as a Bundle then, he will pay 150. From the question stated we can conclude  that  their is a form of interest to pay for Pant and Coat for Both consumers are higher than 25.

However, they will have to pay an amount less for 1 coat and 1 pant if they buy this in a separate way instead of a  Bundle.

We can say, that type of consumers (both) will not buy the pants and coat as a bundle, but will want to buy them separately.

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3 years ago
Fraud Investigators Inc. operates a fraud detection service. On March 31, 10 customers were billed for detection services totali
mr_godi [17]

Answer:

Fraud Investigators Inc.

1. Journal Entries:

March 31:  Debit Accounts Receivable $21,000

Credit Service Revenue $21,000

To record the rendering of service on account.

Oct. 31: Debit Allowance for Uncollectible Accounts $1,300

Credit Accounts Receivable $1,300

To write-off uncollectible accounts.

Dec. 15: Debit Accounts Receivable $760

Credit Allowance for Uncollectible Accounts $760

To reverse a previously written-off account.

Dec. 15: Debit Cash $760

Credit Accounts Receivable $760

To record the cash collected from the customer.

Dec. 31: Debit Bad Debts Expense $460

Credit Allowance for Uncollectible Accounts $460

To record bad debts expense for the year.

A) Debit Accounts Receivable $34,000

Credit Service Revenue $34,000

To record the rendering of service on account.

B) Debit Allowance for Uncollectible Accounts $1,950

Credit Accounts Receivable $1,950

To write off uncollectible accounts.

C1) Debit Accounts Receivable $810

Credit Allowance for Uncollectible Accounts $810

To reverse a previously written-off debt.

C2) Debit Cash $810

Credit Accounts Receivable $810

To record the receipt of cash from the customer.

D) Debit Bad Debts Expense $590

Credit Allowance for Uncollectible Accounts $590

To record bad debts expense for the year.

2. Transaction  Net Receivable  Net Sales   Income From Operation

        A                  +34,000           +34,000           +34,000

        B                  -1,950                 NE                   -1950

        C                  +/- 810                NE                    +810

        D                   NE                     NE                    -590

Explanation:

a) Data and Analysis:

March 31:  Accounts Receivable $21,000 Service Revenue $21,000

Oct. 31: Allowance for Uncollectible Accounts $1,300 Accounts Receivable $1,300

Dec. 15: Accounts Receivable $760 Allowance for Uncollectible Accounts $760

Dec. 15: Cash $760 Accounts Receivable $760

Dec. 31: Bad Debts Expense $460 Allowance for Uncollectible Accounts $460

A) Accounts Receivable $34,000 Service Revenue $34,000

B) Allowance for Uncollectible Accounts $1,950 Accounts Receivable $1,950

C1) Accounts Receivable $810 Allowance for Uncollectible Accounts $810

C2) Cash $810 Accounts Receivable $810

D) Bad Debts Expense $590 Allowance for Uncollectible Accounts $590

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production for that product will increase.

4 0
3 years ago
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