answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
-BARSIC- [3]
2 years ago
14

A company owns an empty office building and is deciding how to use it next year. It would cost $100,000 to staff the office and

$15,000 for equipment. The revenues would be $160,000. Meanwhile, it could rent the office to another company for $75,000 in revenues. In both cases, the company must pay $5,000 for the building's electricity.
Required:
a) If the company is seeking to maximize its economic profit, which course should it pursue and what is the outcome?
Business
1 answer:
Galina-37 [17]2 years ago
5 0

Answer:

It is more profitable to rent the office. Income will increase by $30,000

Explanation:

Giving the following information:

It would cost $100,000 to staff the office and $15,000 for equipment. The revenues would be $160,000.

Rent= $75,000 in revenues.

We need to calculate the most profitable decision:

Option A:

Income= 160,000 - 100,000 - 15,000= 45,000

Option B:

Rent= 75,000

It is more profitable to rent the office.

You might be interested in
What organizational pattern would probably be most effective for arranging the main points of a speech with the central idea "es
Otrada [13]

For arranging the main points of a speech with the central idea "estate taxes should be retained because they preserve opportunity for all, because they help reduce the u.s. budget deficit. You know from that shirt paragraph it is topical. Topical medications are ointments, creams, and solutions that are applied to your skin.

3 0
2 years ago
Colin has been directed by his boss to determine if the company is meeting customers' service quality expectations. One of Colin
Naya [18.7K]

Answer:

The correct answer is intangible.

Explanation:

An intangible asset is a product or service that should not be physically delivered, but that provide us with a service. An intangible product, also called service, should not necessarily revolve around a physical product; There are also so-called pure services, that is, whoever buys a service is not buying something physical; Who buys or hires a service is paying for a transformation process.

8 0
2 years ago
A hot dog vendor sells an average of 50 hot dogs during a Little League baseball game. If the sales are Normally distributed wit
Kobotan [32]

Answer:

74.64%

Explanation:

Average sales (μ) = 50 hot dogs

Standard deviation (σ) = 7 hot dogs

In a normal distribution, the z-score for any given number of hot dogs sold, X, is determined by:

z=\frac{X-\mu}{\sigma}

For X = 45 hot dogs:

z=\frac{45-50}{7}\\ z= -0.7143

For X = 65 hot dogs:

z=\frac{65-50}{7}\\ z= 2.1429

A z-score of -0.7143 falls in the 23.75th percentile of a normal distribution while a z-score of 2.1429 falls in the 98.39th percentile.

Therefore, the probability that he vendor will sell between 45 and 65 hot dogs is:

P(45 \leq X \leq 65) = 98.39-23.75\\P(45 \leq X \leq 65) = 74.64\%

5 0
1 year ago
On 4/1/Y9, Petal Corp. began offering a new product for sale under a 1-year warranty. Petal had 5,000 units in inventory on 4/1/
IrinaVladis [17]

Answer:

$17,000

Explanation:

Units sold = 3,000 units

Expected warranty = 3,000 * $8 = $24,000

Actual warranty costs = $7,000

Estimated warranty liability = $24,000 - $7,000 = $17,000

Therefore, Petal should report $17,000 as estimated warranty liability at June 30, Year 9.

6 0
2 years ago
Social computing forces companies to deal with customers ________ as opposed to ________.
VashaNatasha [74]

Answer:

Reactively, Proactively.

Explanation:

The above statement deals computing forces companies dealings with customers. Generally, in real-life dealings, we cannot afford to have a choice between Proactive and Reactive approaches. Proactive approach is generally more effective in terms of avoiding /reducing loss of life and property etc. however, it depends on the situation, time available to take action and resource availability. I have seen that even in the case of worst natural disasters like cyclones , proactive approach by civic authorities ,on the basis of limited scientific forecast inputs available, helped in averting major damages.

However, if there is a sudden accident, we have no other choice but to react on the spot. In some situations, like disasters ( man-made or natural) , a combination of proactive and reactive approaches can be more effective.

6 0
2 years ago
Other questions:
  • Acme inc. has a mission statement that is open to interpretation. many stakeholders identify with it. their mission statement is
    8·2 answers
  • When the price of a slice of pizza is $1.75, quantity demanded is 400. when the price per slice falls to $1.50, quantity demande
    9·1 answer
  • The ceo of big wheel automotive is concerned about declining sales. he has identified his research problem as the fact that his
    11·1 answer
  • Suppose the price of a Snickers candy bar is $2.00 at both the airport and the grocery store. The price elasticity of demand for
    5·2 answers
  • Darryl’s portfolio includes 66 shares of Essentia Inc., 95 shares of SFT Legal, and 180 shares of Grath Oil. If Essentia Inc. pa
    8·1 answer
  • Hugo has been working on his company’s new marketing campaign for the past few weeks. He is now looking at the target market and
    14·1 answer
  • You are considering purchasing stock in Canyon Echo. You feel the company will increase its dividend at 3.6 percent indefinitely
    10·1 answer
  • Tristan Narvaja, S.A. (C). Tristan Narvaja, S.A., is the Uruguayan subsidiary of a U.S. manufacturing company. Its balance sheet
    10·1 answer
  • You are exploring a career in nursing in the state of MA. The average hourly wage for a RN is $33.37. You are planning to work 4
    13·1 answer
  • Which of the following terms refers to the study of how organizations function and how they affect and are affected by the envir
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!