Yankee Tours provide seven-day guided tours along the New England coast. The company pays its guides a total of $100,000 per year. The average cost of supplies, lodging and food per customer is $500. The company expects a total of 500 customers during the period January through June, and a total of 1,500 customers from July through December. Yankee wants to earn $100 income per customer. For promotional reasons the company desires to charge the same price throughout the year. Based on this information, what is the correct price per customer? (Round to nearest dollar.)
Answers
Answer:
The correct price per customer is $650
Explanation:
The computation of the correct price is shown below:
= Fixed cost + expected number of customers + net income per customer
where,
Fixed cost per customer = Total cost ÷ (total customers + expected customers)
= $100,000 ÷ (1,500 + 500)
= $50
The other values would remain the same
Now put these values to the above formula
So, the value would equal to
= $50 + $500 + $100
= $650 per customer
Related Questions
An effective goal program has goals that are specific, consistent, and appropriately challenging. What is missing?
The economic way of thinking stresses that good intentions lead to sound policy." How would you evaluate this statement? Check all that apply a. The statement is false because a policy motivated by good intentions may have unintended negative consequences. b. The statement is true because any policy that is backed by good intentions will always lead to beneficial outcomes for all involved c. The statement is true because only policies that have no unintended consequences are enacted by the government d. The statement is false because sound economic reasoning is required to anticipate unintended consequences of policies that are motivated by good intentions.
2.) Which of the following is true? A. The convenience yield is always positive or zero. B. The convenience yield is always positive for an investment asset. C. The convenience yield is always negative for a consumption asset. D. The convenience yield measures the average return earned by holding futures contracts.
For a manufacturing company that you are consulting for, managers are unsure about making inventory decisions associated with a key engine component. The annual demand is estimated to be 15,000 units and is assumed to be constant throughout the year. Each unit costs $80. The companys accounting department estimates that its opportunity cost for holding this item in stock for one year is 18% of the unit value. Each order placed with the supplier costs $220. The companys policy is to place a fixed order for Q units whenever the inventory reaches a predetermined reorder point that provides sufficient stock to meet demand until the suppliers order can be shipped and received. As a consultant, your task is to develop and implement a decision model to help them arrive at the best decision. As a guide, consider the following:1. Define the data, uncontrollable inputs, and decision variables that influence total inventory cost.2. Develop mathematical functions that compute the annual ordering cost and annual holding cost based on average inventory held throughout the year in order to arrive at a model for total cost.3. Implement your model on a spreadsheet.4. Use data tables to find an approximate order quantity that results in the smallest total cost.5. Use Solver to verify your result.6. Conduct what-if analyses to study the sensitivity of total cost to changes in the model parameters.7. Explain your results and analysis in a memo to the vice president of operations.
Answers
Answer:
$368
Explanation:
Bad debts also known as uncollectible expenses are the portion of the accounts receivable in accrual accounting that have to be written off as they are eventually not paid by the accounts receivable.
One of the ways of estimating bad debt is allowance method , which is expressing a bad expenses as a percentage of credit sales based on experience and past records.
Days past due balance % uncollectible
Current 11,000 1% 110
30-60 days 2,400 3% 72
61-90 days 1,700 6% 102
Over 90 days 840 10% 84
Total 368
Bad debt expenses to be recognized is $368
Final answer:
Heller Corporation should report a bad debt expense of $368,000 for the current period, calculated by adding the products of each A/R balance by its estimated percentage uncollectible.
Explanation:
The bad debt expense that Heller Corporation should report for the current period can be calculated by multiplying each A/R balance by the corresponding estimated percentage uncollectible, and summing these values. Here's a step-by-step process:
- For the current: $11,000 * 1% = $110
- For 30-60 days past due: $2,400 * 3% = $72
- For 61-90 days past due: $1,700 * 6% = $102
- For over 90 days past due: $840 * 10% = $84
Add these numbers together to get the total bad debt expense: $110 + $72 + $102 + $84 = $368 (in thousands, so $368,000).
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Answers
Answer:
Number of Shares for Basic Earnings per Share = 3,000,000
Number of Shares for Diluted Earnings per Share = 3,200,000
Explanation:
Basic Earnings per Share = Earnings Attributable to Holders of Common Stock / Weighted Average Number of Common Shares
Weighted Average Number of Common Shares
Common Shares Outstanding - December 31, year 1 2,500,000
April 1, Year 2 Issue, 9/12× 500,000 375,000
July 1, Year 2 Issue, 6/12× 250,000 125,000
Number of Shares for Basic Earnings per Share 3,000,000
Diluted Earnings per Share =Adjusted Earnings Attributable to Holders of Common Stock /Adjusted Weighted Average Number of Common Shares
Adjusted Weighted Average Number of Common Shares
Number of Shares for Basic Earnings per Share 3,000,000
Add 7% convertible bonds (5,000×40 shares) 200,000
Number of Shares for Diluted Earnings per Share 3,200,000
Final answer:
To compute basic earnings per share (EPS) and diluted earnings per share for the year ended December 31, year 2, we need to consider the weighted average number of shares outstanding during the year. The number of shares to be used in computing basic EPS would be 2,500,000 for the first three months, then 3,000,000 for the next six months, and finally 3,250,000 for the last three months. For diluted EPS, we would use the same number of shares as the basic EPS calculation.
Explanation:
To compute basic earnings per share (EPS), we need to consider the weighted average number of shares outstanding during the year. For this, we calculate the number of months each share was outstanding and then multiply it by the number of shares for that period. The number of shares to be used in computing basic EPS would be 2,500,000 for the first three months, then 3,000,000 (2,500,000 + 500,000) for the next six months, and finally 3,250,000 (2,500,000 + 500,000 + 250,000) for the last three months.
For diluted EPS, we need to consider the potential dilutive effect of convertible bonds. Since no bonds were converted into common stock, the number of shares to be used in computing diluted EPS would be the same as the basic EPS calculation.
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Answers
Answer: E
Explanation:
Weak form efficiency advocates that past price movements, earnings and volume data does not affect the price of stock and therefore cannot be used in the prediction of its future direction.
Weak form efficiency is also called random walk theory. It states that the prices of future securities are random and past events does not affect the prices. Advocates believe every information needed can be found in the stock prices and there is no need for past information. It is an irrational decision by amateur investors.
Answer:
The correct answer is letter "B": historical prices.
Explanation:
American Economist Eugene Fama (born in 1939) proposed the Efficient Market Hypothesis (EMH) stating that it is impossible to beat the market. There are three types of EMH: The Weak, Strong, and Semi-Strong EMH. The Weak form of the EMH suggests that current stock prices reflect all the data of past prices and technical analysis is useless to predict stock price fluctuations.
Answers
Answer:
9.92%
Explanation:
First, find the Annual Percentage Rate (APR).
You can do this with a financial calculator using the following inputs;
PV = -24500
N = 60
PMT = 514.55
then CPT I/Y = 0.792% (this is a monthly rate)
APR = 0.792% *12 = 9.5%
Next, convert APR to EAR;
EAR =
whereby m= number of compounding periods per year ;12 in this case.
EAR =
= 1.0992476 - 1
=0.0992476 or 9.92%
Therefore, the effective rate on this loan is 9.92%
Which of the following terms refer to these advertisements?
A) pay-per-click ads
B) floating ads
C) interstitials
D) superstitials
E) banner ads
Answers
Answer:
The correct answer is letter "E": banner ads.
Explanation:
Banner ads are rectangular publications portrayed at the top, bottom, left or right side of a website to promote products or services on a website different from the one the goods are sold. Banner ads invite visitors to go into the advertiser's website to dive into its gamma of products offered.
Final answer:
The advertisements that appear above the organic search results are called pay-per-click ads. This is a form of online advertising where advertisers pay a fee for each click on their ad.
Explanation:
The advertisements that appear above the organic search results when you're searching for the details of a refrigerator are referred to as pay-per-click ads (option A). These are a type of online advertising where the advertiser pays a fee each time their ad is clicked by a user. The search engine makes use of this advertising model for its ads, which are strategically placed to attract potential buyers. Other options like floating ads, interstitials, superstitials, and banner ads are also types of online advertisements but they have different characteristics and are used in different contexts.
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Answers
Answer:
I agree with that, because all of them have good bussiness ideas.
Final answer:
Even though a general partnership might work for Alice, Betty, and Cathy, a limited liability company (LLC) or a corporation might be more appropriate due to Alice's wealth, Betty's business knowledge, and Cathy's valuable scientific process. This way, they can better protect their individual assets, as well as the venture's funding and potential expansion.
Explanation:
While a general partnership might seem like a viable solution for Alice, Betty, and Cathy, it may not be the most optimal choice considering their individual circumstances and contributions. In a general partnership, every partner shares liability and financial commitment equally or according to their investment. Although this may initially seem fair, it might put Alice at risk since she's contributing the most financially. Instead, I'd recommend considering a limited liability company (LLC) or corporation.
In an LLC, Alice, Betty, and Cathy can limit their personal liabilities. This would allow Alice to protect her wealth while still contributing to the venture. In a corporation, the company is considered a separate legal entity. This structure can also be beneficial if they plan on seeking outside venture capital or looking into other ambitious expansion.
Remember, the final decision depends on various factors including tax considerations, business goals, and the level of desired legal protection. It is advisable to consult with a business advisor or attorney before deciding.
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