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scoundrel [369]
3 years ago
10

Computing net income LO A1

Business
1 answer:
Sergio [31]3 years ago
5 0
Ummmm ... ok will not have any money and I can get a new phone I can do that and then you make me wanna play and I will go back on Monday if it’s a little bit of the above I
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Cold Duck Airlines flies between Tacoma and Portland. The company leases planes on a year-long contract at a cost that averages
Korvikt [17]

Answer:The Firm should continue to produce up until Revenue generated equals Marginal Cost. Cold Duck Company would maximize profit when the number of flights is in a level when Revenue equals Marginal cost which is the same as variable costs in this case.

Explanation:

Cold duck Airlines leases plane on a year long contract at an average cost of $600 per flight.The average cost of $600 per flight is calculated as Lease cost per year divided by number of flights. This tells us that the lease cost per year is fixed and the $600 average  cost per flight is the Average Fixed cost. if Cold duck flies more planes between Tacoma and Portland The number flights will increase which will decrease the average lease cost per flight.

Other Costs fuel (flight attendants,etc) amount to $550 per flight, these costs will increase as Cold Duck Airlines increases flights between Tacoma and Portland. These costs should be treated as Variable costs because they increase as the number flights increases.

The revenue generated on each flight, which can be seen as the price for each flight is $1000.

The Firm maximizes its profits in a competitive market by producing a quantity level That makes Price equals Marginal cost, Marginal cost being the price of producing an additional unit, in this case is the cost of an additional flight which is $550 amount of other costs  because lease cost fixed  whether Cold Duck Makes 1 flight or 10 flights it doesnot change

The Firm should continue to produce up until Revenue generated equals Marginal Cost. Cold Duck Company would maximize profit when the number of flights is in a level when Revenue equals Marginal cost which is the same as variable costs in this case. Revenue would be equal to $550 when profit is at the maximum level

6 0
3 years ago
Read 2 more answers
George's Equipment is planning on merging with Nelson Machinery. George's will pay Nelson's shareholders the current value of th
zalisa [80]

Answer:

31 per share

Explanation:

The computation of value per share is shown below:-

Share exchange ratio = MPS of Nelson ÷ MPS of George

= $38 ÷ $31

= 1.2258

MPS a + b = MVa + MVb ÷ Number of shares a + Number of shares b × SER

= (1600 × $38) + (4,600 × $31) ÷ 4,600 + (1,600 × 1.2258)

= $60,800 + $142,600 ÷ 4600 + 1,961

= $203,400 ÷ 6,561

= 31 per share

Therefore for computing the value per share we simply applied the above formula.

4 0
3 years ago
The power of a labor union weakens when the company introduces technologies that replace the need for the union's members. techn
icang [17]

Technology is a substitute for employees

6 0
3 years ago
Which one of the following ratios is a measure of a firm's liquidity?
Hunter-Best [27]

Answer:

1. quick ratio

Explanation:

Common liquidity ratios include the quick ratio, current ratio, and days sales outstanding. Liquidity ratios determine a company's ability to cover short-term obligations and cash flows, while solvency ratios are concerned with a longer-term ability to pay ongoing debts.

Pls mark brainliest

Thank you

6 0
1 year ago
A good way to show your boss that you are dependable is to _____. a. arrive early b. arrive with snacks c. arrive late d. arrive
myrzilka [38]
A. Arrive early.

Explanation:

Dependable: Trustworthy and reliable.

B. Arriving with snacks doesn’t get you anywhere.

C. Arriving late isn’t even up for debate.

D. A day off is a day off for a reason, go home pal.
3 0
3 years ago
Read 2 more answers
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