Net Worth is equal to assets minus liabilities. Which event will have the greatest impact (positive or negative) on one's net worth?
Pay off $4,000 of school loans with cash
Go on a vacation that costs $3,500
Buy a new car at market value for $15,000. Car depreciates 20% upon transfer of ownership from the dealer to the buyer.
Finance a used car at market value for $16,000
Inherit $2,000 from a relative

Answers

Answer 1
The answer is Go on a vacation that costs $3,500 

Paying off money for buying a car will not decrease your net worth as you get the car as assets for the money you use. But the depreciates 20% will cause you to lose $3,000 assets. Assuming you are not buying assets at all, go on a vacation that costs $3,500 will increase liability.
Paying up bills will decrease your asset but it also decreases your liability to the net worth wouldn't change. 

Related Questions

If the mean time between in-flight aircraft engine shutdowns is 12,500 operating hours, the 90th percentile of waiting times to the next shutdown will be:

Answers

Final answer:

The 90th percentile of a set of data is the point below which 90% of the values fall. But in order to calculate this percentile for the given problem, more data beyond just the mean time between shutdowns, for example, the standard deviation or the complete data set are required.

Explanation:

The student is basically asking for a calculation related to a concept in statistics, specifically percentiles. The 90th percentile of a set of data represents the point below which 90% of the observations may be found. However, the data provided in the question does not provide sufficient information to calculate the 90th percentile of flight engine shutdown waiting times. The mean time between in-flight engine shutdowns of 12,500 hours is given, but percentiles can not be calculated from means alone. Other details such as standard deviation or a data set are needed.

For illustration, if we have those details, as per standard normal distribution, the 90th percentile would typically fall around 1.28 standard deviations above the mean. But in this context, it's not possible to calculate the exact 90th percentile value without further data.

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Generally with bond ratings, the higher the rating, the ________ the interest rate an investor will receive and the ________ the the risk that the issuer of the bond will default.

Answers

Higher bond ratings mean a lower interest rate and lower default risk for investors. Below investment grade bonds, or junk bonds, appear at higher yields above the Baa line on a risk structure graph due to higher default risk. Bond prices and interest rates are inversely related, and investors demand higher returns for taking on more risk.

Generally with bond ratings, the higher the rating, the lower the interest rate an investor will receive and the lower the risk that the issuer of the bond will default. Corporate bond ratings, which range down to C (for Moody's) or D (for Standard & Poor's), identify the risk level associated with bonds. Bonds with such ratings, also known as B.I.G. or below investment grade bonds, would have higher yields due to their higher default risk, similar tax treatment, and potential for less liquidity. As such, if plotted on a risk structure of interest rates graph, like Figure 6.1 'The risk structure of interest rates in the United States, 1919-2008,' these bonds would land above the Baa line.

Moreover, a typical bond issues payments over time based on the interest rate at issuance by the financial institution and when the borrower repays it. High-yield or junk bonds offer high rates of return but also a higher chance of default. As interest rates for the broader economy change, bonds issued at lower rates become less attractive, thereby causing the investor to suffer an opportunity loss due to being locked into the low rate.

Given that higher bond ratings imply lower default risk, investors need a premium, either through a higher yield or a lower purchase price, to take on the risk of holding lower-rated or longer-term bonds. Therefore, lower credit ratings equate to higher yields for investors as compensation for undertaking additional risk.

During its first year of operations, mack's plumbing supply co. had sales of $630,000, wrote off $10,100 of accounts as uncollectible using the direct write-off method, and reported net income of $69,300. determine what the net income would have been if the allowance method had been used, and the company estimated that 1 3/4% of sales would be uncollectible.

Answers

Final answer:

The net income for Mack's Plumbing Supply Co. would have been $68,375 if it had used the allowance method, estimating 1.75% of sales as uncollectible instead of using the direct write-off method, which resulted in a reported net income of $69,300.

Explanation:

The student is asking how to calculate the net income for Mack's Plumbing Supply Co. if it had used the allowance method for accounting for uncollectible accounts rather than the direct write-off method. In the scenario provided, the company's sales were $630,000, and it wrote off $10,100 as uncollectible using the direct write-off method. The reported net income was $69,300. Under the allowance method, the company would estimate future uncollectible accounts as a percentage of sales, which is given as 1 3/4% or 1.75%.

To calculate the net income under the allowance method, first, we need to compute the estimated uncollectible amount: $630,000 × 0.0175 = $11,025. This amount would be recorded as a bad debt expense. The net income would then be adjusted as follows: Original net income of $69,300 minus the difference between the allowance method's expense and the direct write-off amount ($11,025 minus $10,100 = $925). So, the adjusted net income would be $69,300 minus $925, or $68,375.

When using acronyms , if there is any chance that your reader may not understand the initials?

Answers

Hello!

The correct answer would be: Yes, your reader may sometimes have trouble understanding certain acronyms and initials.

I hope my answer benefited you! :)

"a survey question should have response choices that are exhaustive." this means that

Answers

The quoted sentence means that the answers in the respondent’s choices should be made all possible and included in which it should all be possible answers for having exhaustive means that all things are made to be considered which is why all possible answers should be included.

Final answer:

Survey response choices being 'exhaustive' means that all possible answers a participant may have are covered. This includes a range from extremes and everything in between to fully capture the participants' responses.

Explanation:

When it’s mentioned that 'a survey question should have response choices that are exhaustive', it means that the options provided in the survey answer should cover all possible answers or responses that a participant might have. This includes a range from one extreme to another and everything in between. For instance, if a survey question is asking about satisfaction with a product, the options should range from `very dissatisfied` to `very satisfied`, with other options like `somewhat satisfied`, `neither satisfied nor dissatisfied`, and `somewhat dissatisfied` in the middle. Providing exhaustive options helps to capture the full range of responses and prevents any participant from being left without a suitable answer.

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The annual output and prices of a 3-good economy are shown in the table below. instructions: enter your answers as whole numbers.
a. what was gdp in year 1? $ .
b. what was gdp in year 2? $

Answers

In getting the GDP or Gross Domestic Product for year 1 and year 2, you should multiply the price to the quantity of goods sold and add them all up.

 

For GDP Year 1

 

Given:

 

Quarts of Ice Cream with a price of $6 and 4 quantity of goods.

 

Bottle of Shampoo with a price of $5 and 2 quantity of goods.

 

Jars of Peanut butter with a price of $3 and 4 quantity of goods.

 

= (6 x 4) + (5 x 2) + (3 x 4)

 

= $46

 

For GDP Year 2, the same products with different price and quantity.

 

= (6 x 6) + (5 x 3) + (3 x 3)

 

= $60

When a manager leaves his or her job to accept a job at another organization, the organization left behind is experiencing?

Answers

When a manager leaves their job for another organization, the organization left behind experiences turnover. This entails the departure of employees, leading to challenges like recruitment costs and workflow disruption.

When a manager leaves their job to accept a position at another organization, the organization left behind is experiencing turnover. Turnover refers to the rate at which employees leave an organization and need to be replaced. It can have various implications for the organization, including both positive and negative effects.

On the positive side, turnover can create opportunities for new talent to bring fresh perspectives, skills, and ideas to the organization. It can also lead to promotions and career advancement opportunities for existing employees. However, turnover also poses challenges for organizations, such as the costs associated with recruiting, hiring, and training new employees. Moreover, turnover can disrupt workflow, reduce productivity, and impact team morale, especially if key personnel are departing.

While stereotypes, cognitive dissonance, burnout, and absenteeism are all relevant concepts in organizational psychology, they do not directly correspond to the situation described. Stereotyping refers to the categorization of individuals based on preconceived notions, cognitive dissonance is the discomfort experienced when holding conflicting beliefs, burnout is a state of emotional, mental, and physical exhaustion, and absenteeism refers to employees' frequent or prolonged absence from work. In contrast, turnover specifically addresses the departure of employees from the organization.

Q- when a manager leaves his or her job to accept a job at another organization, the organization left behind is experiencing .

a. stereotyping

b. cognitive dissonance

c. burnout

d. turnover

e. absenteeism

Marketers of sunscreen tend to market the product more heavily in the midwest during summer months. this group of buyers is most likely being segmented by​ __________.marketers of sunscreen tend to market the product more heavily in the midwest during summer months. this group of buyers is most likely being segmented by​ __________.

Answers



 

The sunscreen marketers segmented group of buyers probably by​ occasion segmentation where they tend to market the product more heavily in the Midwest during summer. Occasion segmentation is dividing the market into groups according to different occasions example: as when the consumers actually buy, plan to buy or use the product and others are assumed to be pertinent for a specific event, time or day.





Upon seeing the fraser's spiral, most people must carefully trace one of the circles to confirm what is "real" in the design. this is an example of

Answers

the answer to this question is Reality testing
In business term, Reality testing refers to the process to separate our emotion to see the actual situation that revolves around us.
By doing this, we will keep ourselves from relying on negative emotions to make a decision and start to use objective measures to predict the outcome.

The majority of private sector employment in the u.s. economy is in the

Answers

Final answer:

The majority of private sector employment in the U.S. economy is in the service industries/tertiary sector.

Explanation:

In the U.S. economy, the majority of private sector employment is in the service industries or the tertiary sector,. According to the U.S. Bureau of Labor Statistics, almost 80 percent of the workforce in the United States is employed in the tertiary sector, which includes services such as education, financial services, and business and professional services.

This growth in the service sector has led to a shift in the American economy, with manufacturing jobs being replaced by service sector jobs. While some service sector jobs are well-paying, others are not, leading to a widening gap between the upper class and the working poor.

Colleges and universities often make loans to students. how would these loans be reported on the financial statements?

Answers

they report them as student loans

Q 7.8: why do companies often use the gross method of recording cash discounts if the net method is theoretically more correct?

Answers

Using the gross method of recording cash discounts, one will record the transaction at full amount without the discount applied yet. If the customer avails the discount, then another entry will include the discount. This is the more preferred method of recording cash discounts because it allows you to see the details of discounts and monitor the costs that the company has incurred with the discounts. 

As a help desk technician, list four good detective questions to ask if a user calls to say, "my computer won't boot."

Answers

the four questions are:
- Is the power on in your building?
- Is the machine turned on? Do you see the light on?
-Have you made any changes to the hardware recently?
- Are the cables plugged in tight?

This questions will eliminate external technical factors that could cause the computer to not booting. If the answers of all the questions above is no, then the help desk technician could definitely conclude that the problems relies on the software.

Four good detective questions that is asked when a user calls of having their computer to be booted are the following;

-          Is your computer plugged on the socket?

-          Have you tried turning on your CPU or monitor?

-          Are all cables in your computer placed in their rightful positions?

-          Are you certain that there are no lose cables or plugs in your computer?

Top management should not be involved in diversity training.
a. True
b. False

Answers

False. I believe that top management should be involved with diversity training because it allows them to receive better insight about how certain ethnic groups react to situations happening in society. It would also give them insight of how to market other ethnic groups.

A midwestern city negotiates a deal with a company to operate its parking meter system. the city will receive a lump sum payment of several million​ dollars, and the company will have the rights to​ operate, maintain, and collect the revenue from the parking meters. this is an example of​ _______.
a. privatization
b. socialism
c. a planned economy
d. monopolistic competition
e. perfect competition

Answers

That is an example of privatization. The transfer of possession, assets or commerce from the government to the private sector is called privatization. The government ends to be the owner of the entity or business. The development in which a publicly-traded corporation is taken over by a few individuals is also called privatization.

"list the major characteristics of a normal probability distribution"

Answers

“Bell shaped” and the mean, median, and mode are all equal and are located in the center of distribution.
Final answer:

The major characteristics of a normal probability distribution are bell-shaped and symmetric about the mean, with the mean, median, and mode all located at the same point. The total area under the curve is one, and the shape of the curve can be influenced by the standard deviation. A special distribution called the standard normal distribution has a mean of zero and a standard deviation of one.

Explanation:

The major characteristics of a normal probability distribution are as follows:

The normal distribution is bell-shaped and symmetric about the mean.The mean, median, and mode of the distribution are all located at the same point.The total area under the curve is equal to one.The shape of the curve can be influenced by the standard deviation, with a larger standard deviation resulting in a wider curve.There are an infinite number of normal probability distributions, but a special distribution called the standard normal distribution has a mean of zero and a standard deviation of one.

Which of the following comments is an example of the sandwich technique of giving feedback? I really appreciate your attention to detail when stocking shelves; however, you need to be a little bit faster when doing the stocking. I also like how nice the shelves look when you are done working on them. I really appreciate your attention to detail when stocking shelves; however, you need to speed it up. You need to be a little bit faster when stocking shelves. I do appreciate how nice the shelves look when you are done working on them, though. You're really not too fast when you are doing the stocking. I really appreciate your attention to detail when stocking shelves, but it would be great if you could maybe speed it up.

Answers

 I really appreciate your attention to detail when stocking shelves, but it would be great if you could maybe speed it up. sounds kind of like a sandwich technique because the other decisions do not make sense.

Answer:

The correct answer is letter "A": I really appreciate your attention to detail when stocking shelves; however, you need to be a little bit faster when doing the stocking. I also like how nice the shelves look when you are done working on them.

Explanation:

The sandwich technique or the sandwich approach while giving feedback consists of giving at first a compliment, then a correction, to finish with another compliment. It is believed to be a method by which the person criticized could take the feedback smoothly instead of having the sensation of being attacked. Besides, it does not only point out a possible mistake or malpractice of an employer but also the good job the employee is doing.

In that sense, option letter "A" is an example of the sandwich technique since:

I really appreciate your attention to detail when stocking shelves;

(Compliment)

however, you need to be a little bit faster when doing the stocking.

(Correction)

I also like how nice the shelves look when you are done working on them.

(Compliment)

Metrics frequently measure items such as time to answer, number of calls per hour, number of complaints per employee, as well as traditional financial metrics. these metrics are types of _____ controls.

Answers

Metrics are part of the operational control in business management. Operational controls ensure the business is within the set standard. These controls are set to manage the daily operations of the business output in relation to product specification, program, and value.
Final answer:

The methods described are types of quantitative controls utilized in business contexts. These provide crucial numerical data for statistical analysis and performance assessment, often sourced from tools like questionnaires.

Explanation:

The metrics which measure items such as time to answer, number of calls per hour, and number of complaints per employee, along with traditional financial metrics, are types of quantitative controls. Quantitative controls are used in businesses to systematically measure and compare performance. They provide numerical data, which can be statistically analyzed and utilized to identify gaps in performance, streamline operations, and drive strategic business decisions. As illustrated by the reference information, a common method of gathering this data is through questionnaires, where subjects answer a series of yes-or-no or multiple-choice questions. This collected data, being in numerical form, allows researchers to calculate metrics like percentages, facilitating further analysis and problem-solving.

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Suppose government imposed a minimum wage above the equilibrium wage.
a. assuming nothing else changes, what do you expect to happen to the resulting shortage of jobs as time progresses?

Answers

An increased minimum wage could result in an increased job shortage as employers struggle to make ends meet. Eventually workers with those higher paying jobs will achieve savings or debt goals and return money to the economy, thereby adding new jobs.

What prediction(s) can researchers make based on the egg-viability hypothesis? select all that apply. what prediction(s) can researchers make based on the egg-viability hypothesis? select all that apply. the probability of hatching failure will be higher for eggs laid later within a clutch. the probability of hatching failure will be lower at higher latitudes. the probability of hatching failure will be higher later in the spring season. the probability of hatching failure will be higher in large clutches?

Answers

This is because eggs "keep" at cooler temperatures.There are three answers that researchers can predict based on the egg-viability hypothesis.
first is the probability of hatching failure will be lower at higher latitudes.
second is the probability of hatching failure will be higher later in the spring season. 
third is the probability of hatching failure will be higher in large clutches

Prediction that the researcher can draw based on the egg viability hypothesisare that the hatching failure probability will be lower at higher latitude, the hatching failure probability will be higher in the spring season, the hatching failure probability will be higher in the large clutches.

Further Explanation:

Many birds begins the incubation prior to the completion of their clutch, this leads to a synchronous development and hatching of eggs. This may also results in their mortality of the smallest chicks. The early incubation may have a functional significance as it is involved in protection of eggs from brood parasitism or in maintaining the viability of early eggs. The viability hypothesis states that the parents of the birds maximizes the hatchability of eggs by starting the incubation process prior to the completion of clutch as the viability decreases over the time.

Factors that affects the hatchability of unincubated eggs are:

Temperature Humidity Gaseous environment Egg orientation Egg turning

Prediction that the researcher can draw based on the egg viability hypothesis are:

The hatching failure probability will be lesser at higher latitude. The hatching failure probability will be more in the spring season. The hatching failure probability will be more in the large clutches.

The temperature is the most crucial condition that affects the hatchability of unincubated eggs. Overheating causes the death of the embryo

Learn more:

Learn more about birds https://brainly.com/question/2249299 Learn more about cell https://brainly.com/question/1420458 Learn more about blood https://brainly.com/question/1213217

Answer Details:

Grade: College Biology

Subject: Biology

Chapter: Reproductive biology

Keywords:

Birds, incubation, clutch, hatching, mortality, brood parasitism, viability, temperature, humidity, egg orientation, egg turning, embryo.

When you organize the order with which you will complete your tasks, you are _____.
a.
Remediating
b.
Delegating
c.
Analyzing
d.
Prioritizing

Answers

the answer is hope i helped

When you organize the order in which you will complete your tasks, you are Prioritizing. Thus, option D is correct.

What is a task?

Task connotes work that is required by an employer, a person in power, or by circumstance. assigned with a number of duties. Duty suggests a commitment to action or accountability for results.

A task's priority can be determined by ranking tasks according to their importance. One might be able to better manage time with the help of this method. We can learn what to do to accomplish critical chores first, meet the deadline, and find additional time for larger activities by doing this.

As there can be a number of tasks that a person needs to perform. There prioritizing what task is important to perform first is mandatory. Therefore, option D is the correct option.

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Why is segmentation recommended for network design? that is, what makes it better to have a separate network segment for web servers, one for the back-end office processing, one for testing new code, and one for system management?

Answers

Segmentation is recommended for network design because it enforces physical separation, where test code could bring down the whole corporate network, which would cause far more damage and chaos than just crashing the testing LAN if there was no physical separation. Example scenario would be: If the testing network is completely isolated, it is not possible for a piece of test code to accidentally affect the management LAN or back-end processing LAN. It might affect the whole testing network, but it will be isolated to that one segment.



. If you approach a railroad track where the gate has come down or lights are flashing, you should stop __________
A. before you are 50 feet from the track.
B. between 15-50 feet from the track.
C. within 6 feet of the track

Answers

You're answer is going to be B
i think the answer is b

Becky wants to buy a new cell phone. she asks her friends who are technologically savvy to recommend a good, lightweight phone that is easy to use. in this scenario, becky is obtaining information using a(n) _____.
a. nonmarketing-controlled information source
b. internal information search
c. marketing-controlled information source
d. external information search

Answers

d. external information search Becky asked others for their opinions, they aren't marketing controlled necessarily but are certainly marketing influenced. If they are savvy then they read a fair amount on the subject from magazines, websites, etc. which would be classified as marketing-controlled.

When a salesperson asks the buyer "do you see how this product will benefit your organization?" he or she is using a(n) _____.​?

Answers

He or she is using a Trial Commitment. It is otherwise known as trial close. It is a sales method in which the sales staff uses convinced variation of questions and explanations using which they then try to discover out the mood of the buyer concerning the product, whether he is attracted in buying the product or otherwise.

Allen tutors in his spare time for extra income. buyers of his service are willing to pay $40 per hour for as many hours allen is willing to tutor. on a particular day, he is willing to tutor the first hour for $10, the second hour for $18, the third hour for $28, and the fourth hour for $40. assume allen is rational in deciding how many hours to tutor. his producer surplus is

Answers

Allen's producer surplus, calculated as the difference between what buyers are willing to pay and what he is willing to accept for each hour tutored, is $64.

The subject of this question is producer surplus, which is a concept in economics related to the benefits that producers receive from selling a good or service. In Allen's case, his producer surplus is the difference between what he is willing to accept for his tutoring services and what the buyers are willing to pay. Allen is willing to tutor for $10 in the first hour, $18 in the second, $28 in the third, and $40 in the fourth. Buyers are willing to pay $40 per hour. To calculate the producer surplus, we subtract Allen's willingness to accept from the buyers' willingness to pay for each hour he tutors.

First hour surplus: $40 - $10 = $30Second hour surplus: $40 - $18 = $22Third hour surplus: $40 - $28 = $12Fourth hour surplus: $40 - $40 = $0 (no surplus as his willingness to accept equals the market price)

Adding these up gives us Allen's total producer surplus: $30 + $22 + $12 + $0 = $64.

How would you respond when someone makes a decision that adversely affects you while saying, "it's nothing personal, it's just business"? is business impersonal?

Answers

Here is your answer Regb1142!!
Hope it helps

When someone says "it's nothing personal, it's just business", they usually mean the decision was driven by business, not personal, motives, aligning with expectations in professional settings for efficiency and impersonality. However, professionalism requires careful communication while being aware of cultural nuances, as well as avoiding insensitivity to individual concerns.

When someone makes a decision that adversely affects you with the justification "it's nothing personal, it's just business", this typically means that the decision was made based on business objectives and not out of any personal animosity. In many professional environments, including Canadian business correspondence, there is an expectation for interactions to be efficient and impersonal, emphasizing function over personal relationships. While directness is often appreciated in business settings, cultural nuances can vary, and what is considered polite or appropriate in one setting may be different in another. Bureaucracies often aim to be impersonal to avoid nepotism and favoritism, though this can lead to perceptions of coldness toward individual concerns.

Addressing business problems can be sensitive, especially if it involves calling out someone's errors or missed opportunities. It's essential to maintain a level of professionalism, even when the stakes are personal, which means avoiding the Denial of Injury excuse, where someone downplays their actions based on the lack of apparent harm. Communication in a business setting should be carefully crafted to be polite and professional. Moreover, awareness of how others will perceive your message is crucial, as intentions might not always be clear or accepted as an excuse for offensive communication.

In a business context, it can be challenging when personal and professional lines are blurred. Yet, effective communication, emotional intelligence, and understanding the cultural context can help navigate situations when business decisions have personal repercussions. When in dialogue, whether in person or online, it's essential to monitor for inappropriate aggression or condescension and strive to maintain productive and respectful communication, despite any personal impact a business decision might have.

Jeremy denham plans to save $5,693 every year for the next eight years, starting today. at the end of eight years, jeremy will turn 30 years old and plans to use his savings toward the down payment on a house. if his investment in a mutual fund will earn him 11.7 percent annually, how much will he have saved in eight years when he buys his house?

Answers

The detailed answer explains how to calculate the amount Jeremy will have saved after 8 years for a house down payment, considering his annual savings and interest rate.

Jeremy Denham plans to save $5,693 annually for 8 years, starting today, with an 11.7% annual interest rate. To calculate his savings after 8 years, we can use the formula for compound interest:

Future Value = P*(1 + r)^n, where P is the annual savings, r is the interest rate per period, and n is the number of periods.

Plugging in the values, Future Value = $5,693*(1 + 0.117)^8 = $15,107.37. Therefore, Jeremy will have saved $15,107.37 for the down payment on his house after 8 years.

The future value of Jeremy's savings after eight years, when he buys his house, would be approximately $80,531.57.

Jeremy Denham plans to save $5,693 every year for the next eight years, starting today. At the end of eight years, Jeremy will turn 30 years old and plans to use his savings toward the down payment on a house.

If his investment in a mutual fund will earn him 11.7 percent annually, we can calculate the future value of his savings using the future value of an annuity formula.

The future value of an annuity formula is:

FV = P * ((1 + r)ⁿ⁻¹) / r

Where:

FV is the future value of the annuity

P is the periodic payment (annual savings)

r is the annual interest rate (in decimal form)

n is the number of periods (number of years)

Step-by-step calculation:

Calculate 1 + r:

1 + r = 1 + 0.117 = 1.117

Calculate (1 + r)ⁿ:

(1.117)^8 = 2.482

Calculate (1.117)ⁿ⁻¹:

2.482 - 1 = 1.482

Calculate the fraction (1.117)ⁿ⁻¹/ r:

1.482 / 0.117 = 12.667

Calculate the future value factor for an annuity due by multiplying by (1 + r):

12.667 * 1.117 = 14.147

Finally, multiply by the annual contribution (PMT) to get the future value:

FV_due = 5,693 * 14.147 = 80,531.57

So, the amount Jeremy will have saved in eight years when he buys his house is approximately $80,531.57.

Some organizational factors increase a project's likelihood of success. identify these "facilitators" for the green project.

Answers

The facilitators for the Green Project are the following:

1. The CIO, Brian Smith, since the Green Project is under him.

2. The PM of the Green Project, Werner McCann

3. The Usability Expert, Linda Perkins.

These persons are the ones who will facilitate the Green Project.

All that blooms provides environmentally friendly lawn services for homeowners. its operating costs are as follows. depreciation $ 1,500 per month advertising $ 2,671 per month insurance $ 1,700 per month weed and feed materials $ 16 per lawn direct labor $ 13 per lawn fuel $ 3 per lawn all that blooms charges $ 89 per treatment for the average single-family lawn. collapse question part (a) determine the company's break-even point in number of lawns serviced per month.

Answers

To get the break-even point, the Total Cost must equal to the Total Revenue or Profit. The Total Cost is the sum of Fixed Costs and Incremental Costs. Fixed costs are depreciation, advertising and insurance which is equal to $5,871 per month. Incremental Costs are weed and feed materials, direct labor, and fuel which is equal to $32 per lawn. The Marginal Revenue is equal to $89 per lawn. Letting “N” to be the break-even point in number of lawns, the break-even equation becomes: $5,871 + $32N = $89N. Then calculating N, the break-even number of lawns is equal to 103.

Other Questions
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