2. Inputs and outputs Yvette's Performance Pizza is a small restaurant in Detroit that sells gluten-free pizzas. Yvette's very tiny kitchen has barely enough room for the four ovens in which her workers bake the pizzas. Yvette signed a lease obligating her to pay the rent for the four ovens for the next year. Because of this, and because Yvette's kitchen cannot fit more than four ovens, Yvette cannot change the number of ovens she uses in her production of pizzas in the short run. However, Yvette's decision regarding how many workers to use can vary from week to week because her workers tend to be students. Each Monday, Yvette lets them know how many workers she needs for each day of the week. In the short run, these workers arevariable inputs, and the ovens arefixed inputs.

Answers

Answer 1

Answer:

Answer:

In the short run, these workers are variable inputs, and the ovens arefixed inputs. TRUE

Explanation:

The statement is true. The worker are defined on a weekly basis at will by Yvette hence, short-term thus variable input.

In the other hand; the oven were leased for the entire year thus, unchangable in the short run. Yvette's decition about the number of oven in her kitchen is a long-term decition as currently are fixed.

Related Questions

________ is the misappropriation of trade secrets related to or included in a product that is produced for or placed in interstate or foreign commerce to the economic benefit of anyone other than the owner.
In 2019, Sheryl is claimed as a dependent on her parents' tax return. Sheryl did not provide more than half her own support. What is Sheryl's tax liability for the year in each of the following alternative circumstances? Use Tax Rate Schedule, Dividends and Capital Gains Tax Rates, Estates and Trusts for reference. (Leave no answer blank. Enter zero if applicable.)a. She received $7,000 from a part-time job. This was her only source of income. She is 16 years old at year-end.b. She received $7,000 of interest income from corporate bonds she received several years ago. This is her only source of income. She is 16 years old at year-end.c. She received $7,000 of interest income from corporate bonds she received several years ago. This is her only source of income. She is 20 years old at year-end and is a full-time student. (Do not round intermediate calculations.)d. She received $7,000 of qualified dividend income. This is her only source of income. She is 16 years old at year-end
In an examination of purchasing patterns of shoppers, a sample of 16 shoppers revealed that they spent, on average, $54 per hour of shopping. Based on previous years, the population standard deviation is thought to be $21 per hour of shopping. Assuming that the amount spent per hour of shopping is normally distributed, find a 90% confidence interval for the mean amount.a. [$51.8409, $56.1591]b. [$52.3174, $55.6826]c. [$45.3637, $62.6363]d. [$47.2695, $60.7305]
Which firm is likely to see its profits reduced the most in a recession: an automobile producer, a manufacturer of boots and shoes, or a janitorial service? Which is likely to see its profits reduced the least? Explain.
The Delta Co. owns retail stores that market home building supplies. Largo, Inc. builds single family homes in residential developments. Delta has a beta of 1.22 and Largo has a beta of 1.34. The riskminus free rate of return is 4 percent and the market risk premium is 6.5 percent. What should Delta use as their cost of equity if they decide to purchase some land and create a new residential community?

Jensen Company uses the percentage of credit sales method for calculating Bad Debt Expense. The company reported $216,000 in total sales during the year; $178,000 of which were on credit. Jensen has experienced bad debt losses of 6% of credit sales in prior periods. What is the estimated amount of Bad Debt Expense for the year

Answers

Answer:

$10,680

Explanation:

Bad debt expense can be seen as an account receivables which are uncollectible during a period of time because of the customers inability to fulfill his /her financial obligations which therefore result into bad debt.

(Bad Debt Expense = Net credit sales × Bad debt loss rate )

= $178,000 × 0.06 = $10,680

Therefore the estimated amount of Bad Debt Expense for the year is $10,680

Miyagi Data, Inc., sells earnings forecasts for Japanese securities. Its credit terms are 2/10, net 50. Based on experience, 80 percent of all customers will take the discount. a.What is the average collection period

Answers

Answer:

a. Average collection period = 18 days

b. Average balance = $1,717,112.33

Explanation:

b. If the company sells 1,240 forecasts every month at a price of $2,340 each, what is its average balance sheet amount in accounts receivable?

a. Average collection period = 80%(10 days) + 20%(50 days)

Average collection period = 0.80(10 days) + 0.20(50 days)

Average collection period = 8 days + 10 days

Average collection period = 18 days

b. Average balance = 1240 * $2,340 * 12*(18/365)

Average balance = 1240 * $2,340 * 12 * 0.0493151

Average balance = 1717112.32992

Average balance = $1,717,112.33

Consider how McKnight Valley River Park Lodge could use capital budgeting to decide whether the $ 11 comma 500 comma 000 River Park Lodge expansion would be a good investment. Assume McKnight Valley's managers developed the following estimates concerning the expansion: LOADING...(Click the icon to view the estimates.) Assume that McKnight Valley uses the straight-line depreciation method and expects the lodge expansion to have a residual value of $ 950 comma 000 at the end of its ten-year life. The average annual net cash inflow from the expansion is expected to be $ 2 comma 779 comma 548. Compute the payback for the expansion project. Round to one decimal place.

Answers

Answer:

4.1 years

Explanation:

The payback period is the time it takes the project to recover the initial investment required to carry it out.

We are not given any information about the actual yearly revenues and costs, but you give the average net cash flow per year, so we can use that amount to calculate the payback period:

the payback period = total investment / net cash flow = $11,500,000 / $2,779,548 = 4.137 ≈ 4.1 years

In January, 2006, Findley Corporation purchased a patent for a new consumer product for $720,000. At the time of purchase, the patent was valid for fifteen years. Due to the competitive nature of the product, however, the patent was estimated to have a useful life of only ten years. During 2011 the product was permanently removed from the market under governmental order because of a potential health hazard present in the product. What amount should Findley charge to expense during 2011, assuming amortization is recorded at the end of each year?a. $480,000.
b. $360,000.
c. $72,000.
d. $48,000.

Answers

Answer:

b. $360,000.

Explanation:

Data provided in the question

Purchase value of the patent = $720,000

At the time of purchase, the patent life is 15 years

And, the useful life of the patent is 10 years

So, the amortization expense recorded value is

= $720,000 ÷ 10 years × 5 years

= $360,000

The five years is counted from the year 2006 to the year 2011

A firm's current profits are $1,400,000. These profits are expected to grow indefinitely at a constant annual rate of 4 percent. If the firm's opportunity cost of funds is 7 percent, determine the value of the firm: Instructions: Enter your responses rounded to two decimal places. a. The instant before it pays out current profits as dividends. $ 49933333.33 million b. The instant after it pays out current profits as dividends.

Answers

Answer:

a. $49,933,333.33 million

b. $48,533,333.33 million

Explanation:

The computations are presented below:

a. For current profits as dividends in before case

= Profits × (1 + opportunity cost) ÷ (opportunity cost - growth rate)

= $1,400,000 × (1 + 0.07) ÷ (0.07 - 0.04)

= $1,400,000 × 35.6666

= $49,933,333.33 million

b. For current profits as dividends in after case

= Profits × (1 + growth rate) ÷ (opportunity cost - growth rate)

= $1,400,000 × (1 + 0.04) ÷ (0.07 - 0.04)

= $1,400,000 × 34.6666

= $48,533,333.33 million

Final answer:

Using the Gordon growth model, the value of the firm before dividend payouts is calculated to be $49,933,333.33. However, instantly after the dividend payouts, the firm's value becomes zero.

Explanation:

The value of the firm can be determined using the Gordon growth model, which is used to determine the value of a firm or stock that pays dividends that are expected to grow at a constant rate. In such a scenario, the firm's value is equal to the dividends of the next period (D1) divided by the required rate of return minus the growth rate of dividends.

Part A: The firm's value, before the payouts, can be calculated as:

Value = D0 * (1+g) / (k-g) = $1,400,000 * (1+0.04) / (0.07-0.04) = $49,933,333.33

Part B: The firm's value, after payouts, assumes that the firm's capital has come back to the company and will start accumulating again once the next cycle begins. Thus the firm's value would become zero.

Learn more about Gordon Growth Model here:

brainly.com/question/33286384

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Which of the following ratios indicate strong capacity for a company? Select ALL correct answers.Low profit margin ratio
Low asset turnover ratio
Low operating margin ratio
Low debt to equity ratio
High debt service coverage ratio

Answers

The ratios that indicate a strong capacity for a company are Low debt to equity ratio and High debt service coverage ratio.

Debt service coverage ratio is an example of a coverage ratio. It measures the solvency of a firm. A high ratio indicates greater solvency when compared with a low ratio.

Debt to equity ratio is an example of a debt ratio. A high debt to equity ratio indicates higher financial risk and weaker solvency. Thus, a lower ratio is more desirable.

To learn more about financial ratios, please check: brainly.com/question/14171325

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Hadrana corporation reports that at an activity level of 5,500 units, its total variable cost is $275,330 and its total fixed cost is $86,240. what would be the average fixed cost per unit at an activity level of 5,600 units? assume that this level of activity is within the relevant range.

Over a certain period, large-company stocks had an average return of 12.14 percent, the average risk-free rate was 2.49 percent, and small-company stocks averaged 17.09 percent. What was the risk premium on small-company stocks for this period?a. 9.93%b. 19.39%c. 14.81%d. 11.85%e. 4.88%

How can strategic leaders be successful in an industry like the airlines industry