The owner of an Italian restaurant has just been notified by her landlord that the monthly lease on the building in which the restaurant operates will increase by 20% at the beginning of the year. Her current prices are competitive with nearby restaurants of similar quality. However, she is now considering raising her prices by 20 percent to offset the increase in her monthly rent. Would you recommend that she raise prices?

Answers

Answer 1

Answer:

Answer:

Explanation:

In a competitive market, price should be a function of variable/marginal costs not fixed costs.

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The future of cities in the United States and in other countries will be determined by their ability to benefit from the _________________ and to minimize or counterbalance the ______________________.

Answers

Answer:

The correct answer is letter "B": Economies of agglomeration; corresponding diseconomies.

Explanation:

Economies of agglomeration refer to a type of economy in which companies are located one close to another to take advantage of their core competencies. This economic structure typically helps businesses to reduce relocation and delivery costs increasing their profits but in some other cases, the costs could increase if some of the firms lost their economies of scale.

Thus, metropolises in the U.S. must find ways to boost the benefit of economies of agglomeration minimizing the negative effects of the diseconomies of scale in which some firms might fall.

Dawson Corporation has the following information available for 2014: (in millions) Issued common stock $45 Retired common stock $65 Paid dividends $75 Net income $130 Beginning Common Stock balance $625 Beginning Retained Earnings balance $475 Based on this information, what is Dawson's Retained Earnings balance at the end of the year? a. $680 b. $530 c. $420 d. $605

Answers

Answer:

b. $530

Explanation:

As provided retained earnings opening balance = $475

Add net income for the year = $130

Balance = $605

Further dividend is paid, which reduces the balance of retained earnings = $75

Balance after paying dividends = $605 - $75 = $530

All the other information provided in question relates to common stock and has no relevance on retained earnings balance.

Therefore, balance of retained earnings at the end of period = $530

O’Dell Vegetables purchased a harvesting machine on July 1, 2016, for $984,000. The machine was estimated to have a useful life of 8 years with an estimated salvage value of $140,000. O’Dell uses the straight-line method of depreciation. During 2019, it became apparent that the machine would become uneconomical after December 31, 2023, and that the machine would have no scrap value. What should be the charge for depreciation in 2019 under generally accepted accounting principles?

Answers

Answer:

Depreciation expense in 2019 is $144,050

Explanation:

O’Dell Vegetables uses the straight-line method of depreciation, Depreciation Expense each year is calculated by following formula:

Depreciation Expense = (Cost of machine − Salvage Value )/Useful Life

From July 1, 2016 to 2018:

Annual Depreciation Expense = ($984,000 - $140,000)/8 = $105,500

Depreciation Expense in 2016 = $105,500x6/12 = $52,750

Accumulated Depreciation (end 2018) = $52,750 + $105,500 + $105,500 = $263,750

From 2019, the machine would become uneconomical after December 31, 2023:

Salvage Value = 0 and Remaining useful life = 5 year

Depreciation Expense = (Historical Cost - Accumulated Depreciation - Salvage Value)/Remaining Useful Life = ($984,000-$263,750-0)/5 = $144,050

Depreciation in 2019 is $144,050

Presented below is the trial balance of Novak Corporation at December 31, 2020. Debit Credit Cash $ 198,550 Sales $ 8,101,220 Debt Investments (trading) (at cost, $145,000) 154,220 Cost of Goods Sold 4,800,000 Debt Investments (long-term) 300,550 Equity Investments (long-term) 278,550 Notes Payable (short-term) 91,220 Accounts Payable 456,220 Selling Expenses 2,001,220 Investment Revenue 64,400 Land 261,220 Buildings 1,041,550 Dividends Payable 137,550 Accrued Liabilities 97,220 Accounts Receivable 436,220 Accumulated Depreciation-Buildings 152,000 Allowance for Doubtful Accounts 26,220 Administrative Expenses 901,400 Interest Expense 212,400 Inventory 598,550 Gain 81,400 Notes Payable (long-term) 901,550 Equipment 601,220 Bonds Payable 1,001,550 Accumulated Depreciation-Equipment 60,000 Franchises 160,000 Common Stock ($5 par) 1,001,220 Treasury Stock 192,220 Patents 195,000 Retained Earnings 79,550 Paid-in Capital in Excess of Par 81,550 Totals $12,332,870 $12,332,870 Prepare a balance sheet at December 31, 2020, for Novak Corporation. (Ignore income taxes)

Answers

Answer:

Bacccialy and a circle on every card that has a multiple of 5 storage in your room and the black and white and black kitten will also have the same as ad the perimeter on a separate page with the instagram same on the same floor and there is is a approximate usage electricity bill and some of them will not have been paid been paid for while we have not been able link to the mass of tin is it for 100 and the black bin bags etc for the late reply night and last of all Rail season tickets to London increased by the time we get back from amazon then please let let me go and collect it from amazon on Sunday and then send it back again as I am now back in the stock office on Monday so I can tell the other people who have a look at our page page are interested in the our website ready to for us the other ones in with our and a couple other bits of paper with the name Bob

Explanation:

Follow the story and the first one will is a approximate usage approximate date of the line for the late submission date of your submission for the late reply yes to the first day of the contract for the first day in September as the application will be made on the 1st September at your latest address so that we may be able link to the

1 pointif the price decreases from Rs
10 to Rs 8 of a commodity but
the quantity demanded
remains the same , price
elasticity is *
one
O zero
O infinity
O none of these

Answers

Answer:

O zero

Explanation:

Elasticity of demand is defined as the rate of change of quantity of a good demanded with change in price.

Commodities with low elasticity change a little with change in price, while those with high elasticity have a large change with change in price.

The formula for price elasticity is

Elasticity of demand = (% change in quantity demanded) ÷ (% change in price)

Assume the demand is 10 units

Elasticity of demand = ({10 - 10} ÷ 10 * 100) ÷ ({8 - 10} ÷ 10 * 100)

Elasticity of demand = (0) ÷ (-20)

Elasticity of demand = 0

Answer:

PED = 0

Explanation:

The PED or price elasticity of demand is a measure to track and determine the responsiveness of quantity demanded to changes in price of the commodity. The PED is calculated using the following formula,

PED = % Change in Quantity demanded / % Change in Price

PED = [( Q1 - Q0 ) / Q0] / [( P1 - P0 ) / P0]

Lets assume that at price 10 the quantity demanded was also 10 and when price decreased to 8, the quantity demanded remained the same i.e. 10

So,

PED = [( 10 - 10 ) / 10] / [( 8 - 10 ) / 10]

PED = 0

Thus, the price elasticity of demand is zero.

Net income or net loss for a period is calculated by the following formula