A whole supermarket shelf of snack food bags is marked, "Frito-Lay." This is an example of a(n)

Which of these describes the costs and benefits of getting a mortgage?

lianna [129]

Answer:

B

Explanation:

Mortgages prevent government regulation of property but involve higher taxes

6 0

2 years ago

Qwik Service has over 200 auto-maintenance service outlets nationwide. It provides primarily two lines of service: oil changes a

Ann [662]

Answer:

A. The answer is:

Oil-related revenue = 0.75 x 40,000,000 = $30,000,000;

Repair-related revenue = 0.25 x 40,000,000 = $10,000,000

B. The answer is:

Oil-related revenue = 0.75 x 350,000 = $262,500;

Repair-related revenue = 0.25 x 350,000 = $87,500.

Explanation:

A.

Denote X is the total revenue Qwik Service has to earn.

We have:

Oil charge-related revenue: 0.75X; Oil charge-related margin 0.2 x 0.75X = 0.15X

Brake repair-related revenue: 0.25X; Brake repair-related margin: 0.25X x 0.6 = 0.15X.

=> Total contribution margin = 0.15X + 0.15X = 0.3X

To meet break-even, the total contribution margin should be equal to fixed cost or: 0.3X = 12,000,000 <=> X = $40,000,000

=> Oil-related revenue = 0.75 x 40,000,000 = $30,000,000;

Repair-related revenue = 0.25 x 40,000,000 = $10,000,000.

B.

The note Y is the total revenue per one outlet.

At one outlet, revenue and margin will be:

Oil charge-related revenue: 0.75X; Oil charge-related margin 0.2 x 0.75X = 0.15X

Brake repair-related revenue: 0.25X; Brake repair-related margin: 0.25X x 0.6 = 0.15X.

=> Total contribution margin = 0.15X + 0.15X = 0.3X

To meet net income target of $45,000, the total contribution margin should be equal to fixed cost of $60,000 and delivering $45,000 net income or: 0.3X = 45,000 + 60,000 <=> X = $350,000.

=> Oil-related revenue = 0.75 x 350,000 = $262,500;

Repair-related revenue = 0.25 x 350,000 = $87,500.

6 0

3 years ago

On January 1, 2021, Legion Company sold $250,000 of 6% ten-year bonds. Interest is payable semiannually on June 30 and December

notsponge [240]

Answer:

The bond interest expense to be shown in profit or loss as t 30 June 2021

$9,838.56

Explanation:

The bond interest expense is the actual finance cost of using the funds made available by bondholders while the coupon payment is the portion of the finance cost paid to them periodically.

Interest expense=bonds cash proceeds*yield to maturity*6/12

bonds cash proceeds is $163,976

yield to maturity is 12%

interest expense=$163,976*12%*6/12=$9,838.56

5 0

3 years ago

Read 2 more answers

In the price range where demand is inelastic, a decrease in price will result in a decrease in total revenue. True or False?

Kamila [148]

The answer is True
Explanation: N/A

5 0

3 years ago

A politician in a small town notices that many citizens in the town cannot find work. In order to assist these individuals in fi

ohaa [14]

Answer:

b. The goals of the politician and the goals of the job seekers would not be aligned, since unemployed individuals would have a stronger incentive to remain unemployed

Explanation:

Unemployed people would have the incentive to seek employment so as to meet basic needs. But if the politician is already meeting that need, there would be no incentive for the unemployed to seek employment. So, the goal of the politician and job seekers aren't aligned.

7 0

3 years ago