Which employment scenario would not affect the economy adversely?

The Super Bowl is right around the corner and Gowgem Hotels is aquiver with anticipation. They'd like to price their rooms at th

polet [3.4K]

Answer:

Yield management

Explanation:

Because yield management is a management method of analyzing the ways we can increase our profit from the fixed amount of perishable resource. Perishable resource is the limiting factor that limits the maximum sales of the product depending upon the resources available. In this question the perishable resource is the hotel rooms reservations. The maximum reservations can be amounted to the rooms the hotel possesses.

3 0

3 years ago

For lunch, Maria eats only salads or vegetarian burgers. Her weekly food budget is $36. Each salad costs $6 and each vegetarian

tensa zangetsu [6.8K]

Answer:

3 salads, 6 vegetarian burgers

Explanation:

Data provided in the question:

Weekly food budget = $36

Cost of salad, Cs = $6

Cost of vegetable burger, Cv = $3

Now,

Let the number of salads be 'S'

and, the number of vegetable burgers be 'V'

thus,

S × Cs + V × Cv = $36

or

S × $6 + V × $3 = $36 ............(1)

also,

2 salads and 4 vegetarian burgers will give her a utility of 8

i.e U(2, 4 ) = 8

or

U( S, V ) = SV

Now,

From optimal marginal utility condition

Marginal rate of substitution = $\frac{MU_S}{MU_V}=\frac{Cs}{Cv}$

or

$\frac{V}{S}=\frac{6}{3}$

or

V = 2S ..........(2)

substituting the above value in 1

S × $6 + 2S × $3 = $36

or

6S + 6S = 36

or

12S = 36

or

S = 3

substituting S in (2)

V = 2(3)

or

V = 6

Hence,

3 salads, 6 vegetarian burgers

4 0

3 years ago

The average cost associated with each additional dollar of financing for investment projects is:_________

Roman55 [17]

Answer:

c) the marginal cost of capital

Explanation:

The cost which a company bears to add one dollar / unit of capital is called marginal cost. We know that the company raise funds through different sources which can be debt from banks and stocks (common and preferred). This process of raising capital involves a cost which is termed as marginal cost of capital or the cost required to raise an additional unit of capital.

7 0

3 years ago

Use the following information to answer questions 4a.1-4a.5 Gerrell Corp. is comparing two different capital structures. Plan I

maxonik [38]

Answer:

Gerrel Corp.

EPS (Earnings per share) = Earnings after Tax/Number of outstanding shares

Plan I:

EBIT = $90,000

Interest = $4,750 ($95,000 x 5%)

Pre-Tax Income = $85,250

Income Tax Exp. 34,100 ($85,250 x 40%)

After Tax Income $51,150

EPS = $51,150/18,000 = $2.84 per share

Plan II:

EBIT = $90,000

Interest = $9,500 ($190,000 x 5%)

Pre-Tax Income = $80,500

Income Tax Exp. 32,200 ($80,500 x 40%)

After Tax Income $48,300

EPS = $48,300/14,000 = $3.45 per share

Plan III:

EBIT = $90,000

Pre-Tax Income = $90,000

Income Tax Exp. 36,000 ($90,000 x 40%)

After Tax Income $54,000

EPS = $54,000/22,000 = $2.45 per share

Explanation:

a) Data and Calculations:

Plan I = 18,000 shares + $95,000 debt

Plan II = 14,000 shares + $190,000 debt

Difference = 4,000 shares + $95,000 debt

Share price = $95,000/4,000 = $23.75

EBIT = $90,000

Interest Rate = 5%

Corporate Tax Rate = 40%

b) Capital Structure:

Plan I: (Equity and Debt)

Shares of 18,000 x $23.75 + $95,000 debt = $522,500 in total capital

Plan II: (Equity and Debt)

Shares of 14,000 x $23.75 + $190,000 debt = $522,500 in total capital

Plan III: (All-equity plan):

Shares of 22,000 x $23.75 = $522,500 in total capital

c) The Earnings per share is the measurement of the Net Income to stockholders divided by the number of outstanding shares. It gives an idea about the profitability of the entity, especially with regard to the profit made for common stockholders. The EPS is also one of the metrics used in the calculation of the P/E ratio to indicate whether a company's shares are undervalued or overvalued.

5 0

3 years ago

The difference between pretax accounting income and taxable income is due to subscription revenue for one-year magazine subscrip

Aleks04 [339]

Question Completion:

Times-Roman Publishing Company reports the following amounts in its first three years of operation: ($ in 000s) Pretax accounting income Taxable income 2018 2019 2020 S340 $320 $310 380 330 350

Required:

1. What is the balance sheet account for which a temporary difference is created by this situation?

2. For each year, indicate the cumulative amount of the temporary difference at year-end. (Enter your answers in thousands.)

3. Determine the balance in the related deferred tax account at the end of each year. Is it a deferred tax asset or a deferred tax liability? (Enter your answers in thousands.)

Answer:

Times-Roman Publishing Company

1. The balance sheet account for which a temporary difference is created by this situation is the Deferred Subscription Revenue.

2. Cumulative amount of the temporary difference at year-end:

December 31, ($ in 000s) 2018 2019 2020

Cumulative Temporary Difference $40 $50 $90

3. The balance in the related deferred tax account for each year:

December 31, ($ in 000s) 2018 2019 2020

Deferred Tax Asset (Liability) $10 $2.5 $10

They are all deferred tax assets.

Explanation:

a) Data and Calculations:

December 31, ($ in 000s) 2018 2019 2020

Pretax accounting income $340 $320 $310

Taxable income 380 330 350

Temporary Difference $40 $10 $40

Cumulative Temporary Difference $40 $50 $90

Deferred Tax Asset (Liability) $10 $2.5 $10

a) A deferred tax asset arises from the overpayment or advance payment of taxes as a result of the temporary differences between the accounting income and the taxable income. On the other hand, a deferred tax liability arises from the underpayment of taxes as a result of the temporary differences between accounting income and taxable income.

7 0

3 years ago