What do business owners consider when they select a business ownership structure?

PDQ Repairs has 200 auto-maintenance service outlets nationwide. It performs primarily two lines of service: oil changes and bra

KengaRu [80]

Answer:

For Break Even Point

Oil Change: $ 210,000

Brake repair: $ 90,000

For target profit

Oil Change: $ 350,000

Brake repair: $ 150,000

Explanation:

Now, we solve for

the target mix:

sales weight times contribution ratio

0.70 x 0.20 + 0.30 x 0.4 = 0.26

Now we solve the break even point for each service outlet:

$\frac{Fixed\:Cost}{Contribution \:Margin \:Ratio} = Break\: Even\: Point_{dollars}$

Oil Change: 78,000 / 0.26 = 300,000 sales revenue

we multiply by the weight to know eahc type of serivce sales revenue

Oil Change: $ 300,000 x 0.7 = $ 210,000

Brake repair: $ 300,000 x 0.3 = $ 90,000

Now we solve for target profit:

(78,000 + 52,000) / 0.26 = 500,000

Oil Change: $ 500,000 x 0.7 = $ 350,000

Brake repair: $ 500,000 x 0.3 = $ 150,000

6 0

3 years ago

Which of the following is considered a likely result from advertising? A. Brand names offer consumers no new information about p

Margaret [11]

Answer:

B) Signaling theory suggests that expensive testimonials from celebrities indicate a higher quality product.

Explanation:

In advertisement, signalling theory uses a biological approach that celebrities, which are seen as successful, wealthy, powerful, etc. transmit a sense of quality to the products that they endorse or recommend.

For example, Mr. T's breakfast cereal was very successful during the 1980s because customers identified Mr. T with being strong, healthy and powerful. Most people are usually followers, not leaders, and we like to follow our famous celebrities.

7 0

4 years ago

In the short run, if P > ATC, a perfectly competitive firm:A. produces output and incurs an economic loss.B. produces output

denpristay [2]

Answer:

D. produces output and earns an economic profit.

Explanation:

The firm will produce as making the product will pay the cost of the units produced with the current market price of the final good.

As the price is above the average total cost the firm will also earn an economic profit (that is after the accounting profit of explicit cost we subtract the opportunity cost with are implicit in any business and even there, the company manages to get a profit.

3 0

3 years ago

If a country produced nothing but 20 smartphones and 10 Blu-ray players in 2017, priced at $100 per smartphone and $200 per Blu-

Crazy boy [7]

Answer:

$4,000

Explanation:

The computation of the GDP i.e gross domestic product is shown below:

= Number of smartphones × price per smartphone + number of Blu-ray players + price of Blu-ray players

= 20 smartphones × $100 + 10 Blu-ray players × $200

= $2,000 + $2,000

= $4,000

We considered all the information that is mentioned in the question

3 0

3 years ago

Who persuaded congress to establish the reconstruction finance corporation, the home loan bank board, and the federal farm marke

Snezhnost [94]

The Reconstruction Finance Corporation is a government corporation in the US by Eugene Meyer a Federal Reserve Board Governor during the governance of President Hoover. It was applied last 1932 and allowed loans for everyone who would meet the requirements.

The responsibility of the Federal reserve is to provide loans. However, RFC ended after WW2 during President Eisenhower's term. On the other hand, President Roosevelt benefited from its operation when it allowed loans in agriculture and housing.

8 0

4 years ago