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atroni [7]
3 years ago
5

The owner of an Italian restaurant has just been notified by her landlord that the monthly lease on the building in which the re

staurant operates will increase by 20 percent at the beginning of the year. Her current prices are competitive with nearby restaurants of similar quality. However, she is now considering raising her prices by 20 percent to offset the increase in her monthly rent.
Would you recommend that she raise prices?

a. Yes - the increase in lease expense is a fixed cost.
b. No - the increase in lease expense is a fixed cost.
c. No - the increase in lease expense is a marginal cost.
d. Yes - the increase in lease expense is a marginal cost.
Business
1 answer:
almond37 [142]3 years ago
6 0

Answer:

b. No - the increase in lease expense is a fixed cost.

Explanation:

If the owner of Italian restaurant increases the prices of its product it will result in low customers as the restaurant is already at the competitive price among its other competitors. If the restaurant raises prices the customers will move to the competitors which are offering same quality product at reduced price. The rent is increased by 20% which is considered as a fixed cost because it does not affect the per unit production and is not associated with the numbers of customers.

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At the beginning of his current tax year, David invests $13,410 in original issue U.S. Treasury bonds with a $10,000 face value
vagabundo [1.1K]

Answer:

The amount of income that David will report this year if he elects to amortize the bond premium is $455.94.

Explanation:

This can be calculated as follows:

Interest income = Carrying value of the bond * Yield to maturity…………….. (1)

Where;

Carrying value of the bond = $13,410

Yield to maturity = 3.4%

Substituting the values into equation (1), we have:

Interest income = $13,410 * 3.4% = $455.94

Therefore, the amount of income that David will report this year if he elects to amortize the bond premium is $455.94.

6 0
3 years ago
which manufacturing strategy can be described as producing products to put into inventory based on a demand forecast
Gwar [14]

The make-to-stock manufacturing (MTS) strategy can be described as producing products to put into stock based on a demand forecast.

In this strategy, companies do not maintain productive stability over a period of time, but adjust their manufacturing strategy according to times when demand can increase or decrease.

Some advantages of the make-to-stock strategy are:

  • Economy of scale.
  • Waste reduction.
  • Efficiency in the use of resources.
  • Increased response time.

So this is an effective manufacturing strategy for companies that can accurately forecast their demand.

Learn more here:

brainly.com/question/24099922

8 0
2 years ago
From her sales income, barbara has subtracted cost of goods sold, operating expenses, interest expense, and taxes. what she has
Murrr4er [49]
The answer is net income
Net income is the amount of capital that the Company's made during an operational year after all relevant expenses have already been deducted.
Some amount of the net income will be shared to shareholders according to the percentage, and some of it will be put in company's capital to expand the operation.
6 0
3 years ago
Unistar Inc., is an FMCG company that produces a wide range of offerings such as grocery items and personal care products. If Un
Mila [183]

Answer:

b) Descriptive

Explanation:

Descriptive  research -

It refers to the questions of the research , designing the data and researching and analyzing the topic , is called the descriptive research .

it is also known as the observational research method .

From the data of the question , the Unistar Inc , need to opt for a  descriptive research .

6 0
3 years ago
Priscilla is a trader of silver and diamond jewelry. Due to a recessionary trend in the industry, her business has not been maki
saveliy_v [14]

Answer:

The correct answer is: tolerance of uncertainty.

Explanation:

Even if the market for precious metals is facing a decline due to recession, Priscilla mortgaged her house so she can continue investing in her precious metals business. This decision reflects Priscilla's tolerance of uncertainty that comes to the surface when it is not confirm what the course of an event will be because the factors that determine the course are too ambiguous or even unknown. The adverse situation does not discourage Priscilla and she is being tolerant enough to decide to keep her business up and running.

8 0
3 years ago
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