Answer:
Her kitchen Staff can spend up to $3.00 on product cost.
Explanation:
Selling price= $10.00
Margin= $4.00
Labor costs = $10.00*30% = $3.00
Selling Price = Contribition margin + Labor costs + Product Cost.
Isolating Product cost from the equation:
Product cost = Selling price - (Contribution margin + Labor costs)
Product cost = $ 10.00 - ($4.00 + $3.00)
Product cost = $ 10.00 - $7.00
Product cost = $ 3.00
The max. amount that kitchen staff can spend on product cost is: $ 3.00
Answer:
More than $1500 price per car per month has to be dropped.
Explanation:
Given:
price per car = $20,000
car sale per month = 40
rate of increase in demand = 3
Solution:
Revenue R = Price × Quantity = P * Q
From the above given data
P = 20,000
Q = 40
R = P*Q
dQ/dt = 3
We have to find the rate at which the price is to be dropped before monthly revenue starts to drop.
R = P*Q
dR/dt = (dP/dt)Q + P(dQ/dt)
= (dP/dt) 40 + 20,000*3 < 0
= (dP/dt) 40 < 60,000
= dP/dt < 60000/40
= dP/dt < 1,500
Hence the price has to be dropped more than $1,500 before monthly revenue starts to drop.
Answer:
Market survey
Explanation:
For Donna to open a new business in which she will be successful and very profitable she needs to know what problem/need her new business/product can solve in the society. this is very important to know before engaging in any form of business because businesses that solve problem/needs of its community tend to strive better even in a bad economy.
The best marketing strategy to determine this need/want is called Market survey. this survey can be carried out by creating a one page questionnaire about her intended product and post/send it to the relevant audience for appropriate feedback and also to professionals in her intended product. the feedback she gets from the questionnaire will help inform her on the best product to sell.
Answer:
the free cash flow for the current year is zero.
Explanation:
Net income = $400; Net operating profit after taxes (NOPAT) = $500; Total assets = $2,000; and Total operating capital = $1700
Net income = $800; Net operating profit after taxes (NOPAT) = $700; Total assets = $2,300; and Total operating capital = $2,100.
current year:
operating profit after taxes 700
Capital expenditures: 2,000 - 2,300 = (300)
working capital expeneses 1,700 - 2,100 = (400)
free cash flow: 0
As assets increase the company use cash to increase his assets
Also, the operating capital increase the comapny pa debts, extend his collection cycle or any other desition which, increases his cahs needs.
Therefore the free cash flow for the year is zero.
Answer:
a) $250,000
b) Zero
c) $6,100
d) $47,500
Explanation:
a) Bloomington owes $250,000 at year-end 2016 for inventory purchase.\
This relates to account payable and the amount to be reported as liability as at year-end 2016 is $250,000.
b)Bloomington agreed to purchase a $31,000 drill press in January 2017.
No liability will be recognized at year-end because the entity has no present obligation as there is no legal or constructive responsibility to pay $31,000. What occurred is just an agreement that can be altered.
c) During November and December of 2016, Bloomington sold products to a customer and warranted them against product failure for 90 days. Estimated costs of honoring this 90-day warranty during 2017 are $6,100.
The entity will recognized $6,100 as warranty payable as the entity has a present obligation as at year-end 2016 to compensate the customer.
d)Bloomington provides a profit-sharing bonus for its executive equal to 5% of reported pretax annual income. The estimated pretax income for 2016 is $950,000. Bonuses are not paid until January of the following year
The entity will report 5% of $950,000 ($47,500) as liability at year-end 2016 as the the entity has a present obligation to settle its executive.
