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pickupchik [31]
3 years ago
13

An airline has a marginal cost per passenger of $20 on a route from Minneapolis to Dallas. At the same time, the typical fare ch

arged is $300. The planes that fly the route are usually full, yet the airline claims it loses money on the route. This loss may occur because
Business
1 answer:
luda_lava [24]3 years ago
3 0

Answer:

The fixed costs are too high. The marginal cost generally represents variable costs and they might be very low, but if the fixed costs are simply too high, they will need to increase the price of the plane tickets in order to break even. The break even formula is calculated by dividing total fixed costs by marginal revenue (selling price - variable costs).

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Patsy possesses twenty-four acres of remote, rugged land. Patsy has the right to use the property, in¬cluding extracting silver
GenaCL600 [577]

Answer:

C. life estate

Explanation:

A life estate is an estate interest in land that lasts for the life time of the life tenant. The holder of a life estate has a full right to possess the property during their life. A life estate is restrictive in that it prevents the beneficiary from selling the property that produces the income before the beneficiary's death. But the estate cannot continue beyond the life of the beneficiary.  A major benefit of a life estate deed is that it can be used to pass property upon the life tenant's death without it being part of the life tenant’s estate.  

8 0
3 years ago
On January 2, 2009, L Co. issued at par $20,000 of 4% bonds convertible in total into 1,000 shares of L's common stock. No bonds
MrRissso [65]

Answer:

The correct answer is $1.2 per share.

Explanation:

According to the scenario, the computation of the given data are as follows:

Interest expense of Bonds = $20,000 × 4% = $800

Now, Interest expense of Bond, After tax = $800 × ( 1 - 50%) = $800 × 0.50

= $400

So, we can calculate the diluted earning by using following formula:

Diluted Earning = (Net income + Interest expense after tax) ÷ Total outstanding shares outstanding

Where, Total outstanding shares = 1,000 shares + 1,000 shares = 2,000 shares

By putting the value, we get

Diluted earning = ($2000 + $400 ) ÷ 2,000

= $1.2 per share

4 0
3 years ago
Berry Co. purchases a patent on January 1, 2021, for $33,000 and the patent has an expected useful life of five years with no re
Ghella [55]

Answer:

The correct answer is C.

Explanation:

Giving the following information:

Berry Co. purchases a patent on January 1, 2021, for $33,000 and the patent has an expected useful life of five years with no residual value.

Annual depreciation= (original cost - salvage value)/estimated life (years)

Annual depreciation= 33,000/5= $6,600

4 0
3 years ago
The average annual stock return is 11.3%. If you begin your investment portfolio with $2,000, what will your portfolio be worth
Natasha_Volkova [10]

Answer:

6780$

Explanation:

We first find 11% of 2000 by the following equation

2000 x .11

From this we get the annual interest 226$

226$ x 30 = $6780

6 0
2 years ago
Read 2 more answers
Four portfolio managers have generated superior performance against each of their benchmarks and the stock market in general. Th
rusak2 [61]

Answer:

<u>d. Increases allocation to any stock that changes its corporate name</u>

<u>Explanation</u>:

This manager that does this practice is least likely to replicate performance because that is an unprofessional practice.

In most cases when there is a change in the name of a stock it indicates a red signal that the stock price is bad and thus the company may decide to change it's name, thus the future performance of the company diminishes.

5 0
3 years ago
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