Answer:
It would need 549 guests to break even.
Explanation:
The first step will be know the Contribution Margin:
Variable Cost
Food 120
Other 8
Total 128
Next we do the Contribution Margin, which represent how much cash each guest generates to pay the fixed cost
500- 128 = 372
Then we Calculate the total fixed cost we need to pay
Rental 150,000
Advertising 50,000
Entertainment 4,000
Total 204,000
Now we calculate the Break Even Point in units (for this case, in guests)
It would need 549 guests to break even.
Answer:
$46.82
Explanation:
Present value is the sum of discounted cash flows
present value can be calculated using a financial calculator
Cash flow in year 1 = $3.06
Cash flow in year 2 = $3.42
Cash flow in year 3 = $3.78 + $56 = $59.78
I = 13%
Present value = $46.82
To find the PV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
An equilibrium price is where the quantity of goods supplied is equal to the quantity of goods demanded. So if supplies of the said product goes down the equilibrium will go down and the price and demand will be higher.
Answer:
See below
Explanation:
Statement of stockholder's equity at the end of the year 31, December.
•Retained earning
Opening balance
$7,400
Income for the year
$7,700
Dividend paid
($2,400)
Common stock issuance
------------
End of year balance
$12,700
•Common stock
Opening balance
[$12,000 + $7,400]
$19,400
Income for the year
$7,700
Dividend paid
($2,400)
Common stock issuance
$7,200
End of year balance
$31,900
= $31,900 - $12,700
= $19,200
