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4 years ago

14

A stadium estimates its administrative costs for three sponsorships to be $12,000, $27,000, and $63,000. Revenue from the sponso

rships is $250,000. How much of a profit margin can the stadium expect?

2 answers:

Gemiola [76]4 years ago

6 0

The correct answer is $148,000

Rufina [12.5K]4 years ago

5 0

the answer is 59.2% profit margin

hope this helps

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Harry loves both hot dogs and hamburgers. He receives about the same satisfaction from eating one hamburger as he does from eati

Alexeev081 [22]

Answer:

Harry loves both hot dogs and hamburgers. He receives about the same satisfaction from eating one hamburger as he does from eating one hot dog, and the two goods fill the same need in Harry's life. The price of hot dogs has been extremely volatile for the past several years, and this year is no exception Hot dog prices decreased tremendously this month Assuming hot dogs and hamburgers are substitutes for Harry, what is the effect on Harry's demand for hamburgers due to the decrease in the price of hot dogs?

There will be a movement down along his demand curve

Explanation:

Reason behind the decrease in demand curve for hamburger would be as a result of decrease in the price of hot dog which would increase the demand since they could be substituted for each other because of their benefits; hence, the demand curve for hamburger would be decreased or mov e down

0 0

3 years ago

Wallen Corporation is considering eliminating a department that has an annual contribution margin of $80,000 and $160,000 in ann

krok68 [10]

Answer:

$10,000

Explanation:

We need to find the segment margin of the deparment, which is equal to annual contribution margin minus avoidable fixed costs:

Wallen Corporation

Annual contribution margin $80,000

Annual fixed costs $160,000

Unavoidable fixed costs $90,000

Avoidable fixed costs $70,000

Segment Margin = Annual contribution margin - avoidable fixed costs

= $80,000 - $70,000

= $10,000

Therefore, if the company eliminated this department, it would have a financial advantage of $10,000, equivalent to the deparment's current segment margin.

5 0

3 years ago

At what value should the land be recorded in clementine repair service records?

adell [148]

Answer: $369,500

Explanation:

The Cost concept of accounting calls for the recording of Assets at their cost.

Clementine Repair services offered to buy the land at $350,500 when it was priced at $388,500.

The seller countered with $369,500 and Clementine accepted this.

This means that Clementine bought the land for $369,500 which makes it the cost price.

They should therefore record it at $369,500.

6 0

3 years ago

You have just taken a job at a manufacturing company and have discovered that they use absorption costing to analyze product cos

poizon [28]

Answer and Explanation:

Respected Sir,

Sub: Absorption costing to analyze product costs and subsequent cost-volume-profit decisions

As per your requirement please find the explanation below:

Absorption costing is a process by which we add part of the fixed overhead to the production expense of the goods. If we do on a per-unit basis. Here we will compute by dividing the fixed costs by the number of units that we built and sold over the era. Whereas Variable costing includes fixed overhead as a lump sum instead of a per-unit price.

Under this process, all your variable costs like equipment, raw materials, and shipping are included. We will add the maximum fixed overhead costs for the duration. Such costs are not calculated on a per-unit basis. Rather than we deduct them as a lump-sum expense from your income amount.

Variable costing is really useful as it reveals the earnings after all the expenses are paid for the accounting period. While you would not have earned revenue for the goods we purchased as some may be in the inventory, we are showing you have paid all of your expenses for the time. We have excess revenue when you actually sell the finished goods in the warehouse.

The absorption approach is not all that effective as absorption costing will inflate the income figures excessively in any given span of accounting. Since you're not going to subtract any of your fixed costs as we did not sell any of us produced goods, our profit and loss report doesn't reflect the maximum expenses you've had for the time. Therefore, these results may mislead us when our profitability is analyzed.

Regards

ABC

7 0

3 years ago

Victoria Enterprises expects earnings before interest and taxes (EBIT) next year of $ 2.5 million. Its depreciation and capita

Law Incorporation [45]

Answer:

Value of Victoria Enterprises= $21,498,285.71

Explanation:

<em>Free cash flow represents the amount that is left to all the providers of capital after the payment of all all operating expenses, working capital and investment in fixed asset expenditures. </em>

It is computed as cash flow made from operation less capital expenditures

For Victoria Enterprises

The Free cash flow

= EBIT(1-T) + depreciation- increase in capital expenditure - increase in working capital

= 2.5 × (1-0.4) + 0.295 - 0.295 - 0.053

= 2,500,000 × (1-0.4) + 295,000 -295,000- 53,000

FCFF= $1,447,000

Value of a firm = FCFF (1+g)/(WACC-g)

g- growth rate - 4%, WACC- 11%, FCFF-1,447,000

Value of Victoria = 1,447,000 × (1+0.04)/(0.11- 0.04) = 21,498,285.71

Value of Victoria= $21,498,285.71

3 0

3 years ago