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ICE Princess25 [194]
4 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]4 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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Is a Google Analytics Exam question. The correct answer is:
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6 0
4 years ago
A trial balance may prove that debits and credits are equal, but ___________.a. an amount could be entered in the wrong account.
Airida [17]

Answer:

d. All of these answer choices are correct.

Explanation:

Considering all the options;

a. an amount could be entered in the wrong account. - This is true as a transaction that should have been recorded into the asset account could be erroneously recorded as an expense or vice versa. The same applies to expenses and liabilities

b. a transaction could have been entered twice. - This is true. If a transaction is entered twice correctly, the debits would equal the credits

c. a transaction could have been omitted. -  this is true. The omission will not result in unequal debits and credits.

Hence the answer is d. All of these answer choices are correct.

4 0
3 years ago
Two brands of​ water, natural water and mountain​ water, are close substitutes. if the price of mountain water​ decreases, the f
nikdorinn [45]
Substitute goods are those goods which as a result of change in market conditions such as changes in price can replace one another for example mountain water and natural water. They are goods with  positive cross elasticity demand unlike the complementary goods (goods that are used together).  In this case, if the price of mountain water decreases, the fall in price shifts the demand curve for natural water leftward. This means there will be an increased demand for mountain water and a decreased demand of natural water.
7 0
3 years ago
The focus of a(n) __________ strategy is high sales at low cost; the high sales are typically achieved by coming up with a produ
sp2606 [1]

Answer:

Mass marketing

Explanation:

Mass marketing -

It refers to as the marketing strategy , where the focus is on the complete market rather than some specific group , is referred to as mass marketing .

It is the reverse of niche marketing .

Mass marketing requires advertising method like , television , radio , newspaper , magazine etc.

As they tries to capture large area of consumers .

Hence , from the given information of the question ,

The correct answer is mass marketing .

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3 years ago
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Fiesta28 [93]

If the number of buyers of a good increases, the demand for the good will <u>increase</u> and the demand for labor used to produce that good will <u>normal</u>.

The logic behind the demand and supply model is straightforward. The volume of a specific commodity or service that consumers will be able and willing to buy over time at each price is shown by the demand curve.

The supply curve depicts the volume of goods that merchants will offer for sale over that period at various prices.

We should be able to determine a price where the quantity of items buyers are willing and able to buy equals the quantity of goods sellers are willing to offer for sale by combining the two curves.

To learn more about Demand And Supply Model here

brainly.com/question/12984251

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4 0
2 years ago
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