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ICE Princess25 [194]
3 years ago
14

The accountants hired by the Brookside Racquet Club have determined total fixed cost to be $75,000, total variable cost to be $1

30,000, and total revenue to be $145,000. Because of this information, in the short run, the Brookside Racquet Club should
a.sh ut down.

b.exit the industry.

c.stay open because shutting down would be more expensive.

d.stay open because the firm is making an economic profit.
Business
1 answer:
sammy [17]3 years ago
6 0

Answer:

C. Stay Open because Shutting Down would be More Expensive

Explanation:

Although it is quite obvious that in the short-run the business is not breaking even, based on the available options, staying open will be the best current course of action. Staying open and seeing if the trend of things change in coming fiscal years or financial periods will be better than shutting down.

Shutting down takes alot of processes that are quite expensive. Some of the processes include

  • The Decision to Close  
  • File dissolution documents
  • Cancel registrations, permits, licenses, and business names
  • Comply with employment and labor laws
  • Resolve financial obligations
  • Maintain adequate records

These processes are expensive and since the business does not know what is causing  the inability to cover its entire costs, it should investigate and find ways of increasing its total revenue to cover its entire costs before deciding to shut down completely.

a. Shut Down- Shutting Down is More Expensive

b. Exit the Industry- There isn't enough information to know exactly why the business is not making a profit

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Answer:

also known as a financial return, in its simplest terms, is the money made or lost on an investment over some period of time. A return can be expressed nominally as the change in dollar value of an investment over time.

Explanation:

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If you deposited​ $100 now ​(nequals​0)and​ $200 two years from now ​(nequals​2)in a savings account that pays​ 10% annual​ inte
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Answer:

The correct answer is: "You would have $589 the end of year 10".

Explanation:

The logics of the statement remains in the amount of money remained after 10 years of savings with a 10% annual interest. This means that, after you deposit $100 now (nº 0), on the first current year you would have ended up with $110, although in the second year (nº 2) you would have made a deposit of $200, which means you would have made total earnings of $310, plus the annual interest of $31. After the second year, all subsequent ones wound count on with an annual interest of $31, which means that at end of year 10 you would have reached the amount of $589.

(ps: mark as brainliest, please?!)

7 0
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Suppose Ms. Smith sells her 2018 Honda Fit next year. The original cost of the
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Answer:

C

Explanation:

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Behaving in an acceptable manner within a workplace environment is refered to as workplace etiquette.
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Total 17500 shirts are produced and sold. The selling price is $22, variable cost per unit is $18 and fixed cost is $ 80000. If
scoray [572]

Answer:

please mark me as brainlist please

Explanation:

The basic theory illustrated in (Figure) is that, because of the existence of fixed costs in most production processes, in the first stages of production and subsequent sale of the products, the company will realize a loss. For example, assume that in an extreme case the company has fixed costs of ?20,000, a sales price of ?400 per unit and variable costs of ?250 per unit, and it sells no units. It would realize a loss of ?20,000 (the fixed costs) since it recognized no revenue or variable costs. This loss explains why the company’s cost graph recognized costs (in this example, ?20,000) even though there were no sales. If it subsequently sells units, the loss would be reduced by ?150 (the contribution margin) for each unit sold. This relationship will be continued until we reach the break-even point, where total revenue equals total costs. Once we reach the break-even point for each unit sold the company will realize an increase in profits of ?150.

For each additional unit sold, the loss typically is lessened until it reaches the break-even point. At this stage, the company is theoretically realizing neither a profit nor a loss. After the next sale beyond the break-even point, the company will begin to make a profit, and the profit will continue to increase as more units are sold. While there are exceptions and complications that could be incorporated, these are the general guidelines for break-even analysis.

As you can imagine, the concept of the break-even point applies to every business endeavor—manufacturing, retail, and service. Because of its universal applicability, it is a critical concept to managers, business owners, and accountants. When a company first starts out, it is important for the owners to know when their sales will be sufficient

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