All categories

3 years ago

what marginal costs and benefits might a tour boat operator consider when deciding whether to purchase a new boat?

Business

1 answer:

VladimirAG [237]3 years ago

7 0

Answer

The tour boat operator needs to decide whether to buy a new boat to increase the income obtained per day or increase the number of trips made per day and avoid buying a new boat.

Explanation

Marginal cost measures the change in cost over the change in quantity. Marginal benefit is a measurement of change in benefits over change in quantity. The boat operator is going to buy a new boat. Will the marginal cost (how the boat cost) be greater than the marginal benefit( income from increased number of boats).

You might be interested in

When it comes to fraud committed by an organization’s employees, the single most effective fraudprevention technique is _______.

Maurinko [17]

Answer:

Explanation:

5 0

3 years ago

Who is demonstrating entrepreneurship? for bca in high school

ollegr [7]

Ummmmmmmmmmmmmmmmmmmmmmmmmmmmmmm

4 0

3 years ago

Paolucci Corporation's relevant range of activity is 4,000 units to 8,000 units. When it produces and sells 6,000 units, its ave

ratelena [41]

Answer:

$12.50

Explanation:

Variable costs are those costs which changes with the change in activity driving the cost (Sales. production etc.). It can be direct or indirect costs.

Whereas fixed costs are those costs which remains constant and do not change with the change in activity.

All the following costs are variable costs

Average Cost per Unit

Direct materials $6.45

Direct labor $3.30

Variable manufacturing overhead $1.25

Sales commissions $1.00

Variable administrative expense <u>$0.50</u>

Total variable cost per unit <u>$12.50</u>

All the following costs are fixed costs.

Fixed manufacturing overhead $3.00

Fixed selling expense $1.05

Fixed administrative expense $0.60

3 0

3 years ago

Suppose you deposit $116 today, $135 in one year, and $885 in two years in an account that pays an annual rate of interest of 14

olga nikolaevna [1]

Answer:

The answer is $1357.85

Explanation:

Future value= Σ C(1+i)^n

FV = 116(1.141^3) + 135( 1.141^2) + 885(1.141) = $1357.85

7 0

3 years ago

You deposit $5,000 per year at the end of each of the next 25 years into an account that pays 8% compounded annually. How much

Volgvan

Answer:

The correct answer is A. $18,276

Explanation:

First you have to calculate how much you'd end up having at the end of the 25 years period in your savings account.

You calculate the total amount saved for each year, using the formula:

$S_{n} = S_{n-1} *(1+r)+D$

Where

$S_{n}$ is the total amount in the savings account for this period.

$S_{n-1}$ is the total amount in the savings account from the previous period.

$r$ is the interest rate.

$D$ are the annual deposits being made into the savings account.

Therefore for the first year you'd do:

$S_{1} = S_{0} *(1+r)+D$

$S_{1} = 0*(1+0.08)+5000=5000$

For the second year:

$S_{2} = S_{1} *(1+r)+D$

$S_{2} = 5000*(1+0.08)+5000=10400$

And so on. You can help yourself calculate the value of this series using programs like Excel.

I have attached an Excel file that has a table with the savings values for each of the 25 years.

So, the 25th year you’ll have $365,529.70 in your savings account. Now you simply divide this number by 20 (that will be the number of years you’ll be withdrawing the same dollar amount from your savings account):

$Withdrawals = 365,529.70/20=18,276.485$

In conclusion, you’d be able to withdraw $18,276.485 each year for the following 20 years after the 25th deposit, if all withdrawals are the same dollar amount.

Download xlsx

3 0

3 years ago