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Natasha2012 [34]
3 years ago
6

Airline F leases all its aircraft under finance leases. Airline O leases all its aircraft under operating leases. Assuming that

the two airlines report under US GAAP and are otherwise identical except for the mentioned lease classifications, which of the following comments is true?
a. Airline O has lower rent expense reported on its income statement
b. Airline F has a lower EBITDA margin
c. None of the listed answers
d. Airline O has more lease liabilities
e. Airline O has less lease assets at the inception of the lease
Business
1 answer:
Usimov [2.4K]3 years ago
5 0

Answer: e. Airline O has less lease assets at the inception of the lease

Explanation:

With operating leases, the entity leasing the asset or the lessee, does not get the rights to ownership of the asset being leased but instead simply pay a fee or sort of rent for leasing the asset.

With a finance lease however, ownership is passed to the lessee for the lease period and the lessee would have to depreciate the asset and record it in its books.

Airline O will therefore not record any assets but Airline F will. This means that Airline F will have more assets than O because it had to record its assets but O did not.

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Ted has $55.00 in his pocket. Which purchase will he be able to pay for with cash? two books for $29.95 each headphones for $29.
vichka [17]
<span>an MP3 player for $35.99 and a $20.00 gift card for downloading music
& three books of $16.99 each 

It is because, Total money which he has to pay = 35.99 - 20.00 = 15.99
which is less than 55.00

In short, Your Answer would be Option C

Hope this helps!</span>
8 0
3 years ago
Read 2 more answers
Bonita Company had the following operating data for the year for its computer division: sales, $657000; contribution margin, $13
Oksi-84 [34.3K]

Answer:

$42,000

Explanation

Simply put, Controllable margin is known as the excess of contribution margin over controllable fixed costs.

The formula for Controllable margin is: Controllable Margin = Contribution margin - Controllable fixed expenses

CM= $136,000 - $94,000

CM= $42,000

The controllable margin for the year is $42,000.

6 0
4 years ago
Flash City Inc. manufactures small flash drives and is considering raising the price by 75 cents a unit for the coming year. Wit
Lapatulllka [165]

Answer: C. increase by $ 23 comma 350 . Increase by $23,350.

Explanation:

To solve this we will calculate the current Operating profit and then the operating profit after the increase.

Current Operating Profit,

= (Sales - Cost ) * No. Of units

= ( 8.75 - 4.80)* 75,000

= 3.95 * 75,000

= $296,250

Operating Profit after the Increase

= (Sales - Cost ) * No. Of units

= ( 9.50 - 4.80) * 68,000

= 4.7 * 68,000

= $319,600

The difference is,

= $319,600 - $296,250

= $23,350

If the price increase is​ implemented, operating profit is projected to increase by $23,350 so option C is correct.

5 0
3 years ago
How would you define a method that calcuates and reutrns the final price, after tax and tip, for a passed in price, assuming tip
ipn [44]

Complete Question

How would you define a method that calculates and returns the final price after tax and tip. for a passed in price, assuming tip is always 15% and tax is always 8%? Options:

O public double getFinalPrice double basePrice)  (....)

O public void setFinal Price int tax int tip) (....)

O public int get celint basePrice  (....)

O public void getFinal Pricelint basePrice (....)

Answer:

A method that calculates and returns the final price after tax and tip, for a passed in price, assuming tip is always 15% and tax is always 8% can be defined as:

O public void setFinal Price int tax int tip) (....)

Explanation:

The above chosen option will calculate and return the final price after adding 15% for tips and 8% for tax.  The final price, which a customer is expected to settle, includes the cost of the services, the tip the customer pays on the cost, and the tax on the cost of the services.  This method will ensure that the customer pays the correct sales revenue to the organization.  It is mostly used by hotels and other entertainment organizations in calculating the final price of the services rendered to clients.

6 0
3 years ago
A price-discriminating monopolist having identical costs in two markets should charge a higher price in that market Group of ans
Paul [167]

Complete Question:

A price-discriminating monopolist having identical costs in two markets should charge a higher price in that market:

Group of answer choices.

A. which has a higher demand.

B. which has a more elastic demand.

C. which has a less elastic demand.

D. which has a higher marginal revenue.

Answer:

C. which has a less elastic demand.

Explanation:

In competitive marketing, a price-discriminating monopolist is any individual or business entity which charges various customers different prices for its finished products or services, even though the products are similar, identical or homogeneous in nature and there cost of production is the same.

A price-discriminating monopolist having identical costs in two markets should charge a higher price in that market which has a less elastic demand because there are no close substitutes or alternatives for the goods and services.

<em>For instance, if there's a gasoline or fuel hike in a particular state, a price-discriminating monopolist would charge higher price because gasoline or fuel is inelastic in the short-run or has a less elastic demand at the time. </em>

3 0
3 years ago
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