Please see options missing from the original question :
A. rent the room because the marginal benefit exceeds the marginal cost.
B. rent the room because the marginal benefit exceeds the average cost.
C. not rent the room because the marginal benefit is less than the marginal cost.
D. not rent the room because the marginal benefit is less than the average cost.
Answer:
A. rent the room because the marginal benefit exceeds the marginal cost.
Explanation:
Although , the original operating cost of a room per night is $100 (($10,000/100), but since there are idle capacity (empty rooms), the company will be better off by an incremental profit of $30 ($60 -$30) per room by offering to sell empty rooms for $60 per room, using a marginal (incremental ) approach.
<u>Journal entry for the issuance of Bonds:</u>
It is given that on December 31, 2015, wintergreen, inc., issued $150,000 of 7 percent, 10-year bonds at a price of 93.25. That means the proceeds from issue of these bonds are 150,000*93.25/100 = $139,875 and the discount on issue of bonds shall be = 150,000-139875 = $10,125.
The Journal entry for the issuance of Bonds shall be as follows:
December 31, 2015
<u>Account Titles </u> <u>Debit</u> <u>Credit</u>
Cash $139,875
Discount on Bonds Payable $10,125
Bonds Payable $150,000
(Being bonds issued on discount)
Answer:
A) $12.6 B)He will have earned $92.4 extra.
Explanation:
A) Assuming that the $420 is not included when calculating the 12 percent tax, that means the tax that he will pay for the $525 is 12 percent of $105 which is (105 x 12) / 100 = $12.6
B) If Nitai does not work and instead fixes the car himself without spending the $420, he will save that money. But if he works and gets the car fixed at Autofix, he will have earned $92.4 over the weekend and still get his car fixed.
I hope this answer helps.
Answer:
2.2
Explanation:
In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below
Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)
18% = 7% + Beta × 5%
18% - 7% = Beta × 5%
11% = Beta × 5%
So, the beta would be
= 2.2
The (Market rate of return - Risk-free rate of return) is also known as market risk premium and the same has applied.
