A car rental company only offers executive and standard cars. An executive car is priced at $130 while a standard car is priced at $65. Suppose that the executive (full-fare) class demand is uniform between 20 and 60 cars. (a) What is the booking limit for standard (discount fare) customers if the rental company has 100 cars? [Select] (b) What is the booking limit for standard (discount fare) customers if the rental company has 30 cars? [Select]

A car rental company only offers executive and standard cars. An executive car is priced at $130 while a standard car is priced at $65. Suppose that the executive (full-fare) class demand is uniform between 20 and 60 cars. (a) What is the booking limit for standard (discount fare) customers if the rental company has 100 cars? [Select] (b) What is the booking limit for standard (discount fare) customers if the rental company has 30 cars? [Select]

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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answer both questions.
M, or L, for Design a method that calculates the monthly cost to rent a roadside billboard. Variables include the size of the billboard small, medium, or large) and its location (H, M, or L for high-, medium-, or low-traffic areas). The method should throw an exception if the size or location code is invalid. The monthly rental cost is shown in Table 11-1. High Traffic Medium Traffic Low Traffic Small size 900.00 500.00 200.00 Medium size 1600.00 1200.00 600.00 Large size 2000.00 1500.00 800.00 Table 11-1 Monthly billboard rental rates
Use a formula to solve the problem. See Example 1. The factory invoice for a minivan shows that the dealer paid $16,183.78 for the vehicle. If the sticker price of the van is $18,341, how much over factory invoice is the sticker price?
1. Miracle Appliance is a wholesaler of kitchen appliances. You are the purchaser for a home store retailer. Miracle Appliance offers the KIT532 model refrigerator at a list price of $657. Miracle offers your company a trade discount of 25 percent. a. What is the amount of the discount for this refrigerator? b. What net price will you pay for this model refrigerator?
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Pharoah Inc. developed a new sales gimmick to help sell its inventory of new cars. Because many new car buyers need financing. Pharoah offered a low down payment at the time of purchase and low car payments for the first year after purchase. It believes that this promotion will bring in some new buyers. On January 1, 2023, a customer purchased a new $34,900 automobile, making a down payment of $1,500. The customer signed a note indicating that the annual rate of interest would be 8% and that quarterly payments would be made over 3 years. For the first year, Pharoah required a $490 quarterly payment to be made on April 1, July 1, October 1, and January 1, 2024. After this one-year period. the customer was required to make regular quarterly payments that would pay off the loan as of January 1, 2026. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1. Prepare a note amortization schedule for the first year. (Round…
Suppose you are the buyer for the housewares department of a department store. A number of vendors in your area carry similar lines of merchandise. On sets of microwavable serving bowls, Brand A offers a list price of $400 per dozen less a 35% trade discount. Brand B offers a similar set for a list price of $425 less a 42% trade discount. (a) Which vendor is offering the lower net price? Brand A Brand B (b) If you order 500 dozen sets of the bowls, how much money (in $) will be saved by using the lower-priced vendor?
Sam's SnowBoards.com offers 6/5/2 chain discounts to many of its customers. The Ski Hut ordered 20 snow boards with a total list price of $6,600. a. What is the net price of the snow boards? Note: Do not round intermediate calculations. Round your final answer to the nearest cent. Net price b. What was the trade discount amount? Note: Do not round intermediate calculations. Round your final answer to the nearest cent. Trade discount amount
Air Americo is about to introduce a daily round-trip flight from New York to Los Angeles and is determining how to price its round-trip tickets. The market research group at Air Americo segments the market into business and pleasure travelers. It provides the following information on the effects of two different prices on the number of seats expected to be sold and the variable cost per ticket, including the commission paid to travel agents: Price Charged Variable Costs per Ticket # of Seats Expected to be Sold Business Pleasure 800 2,100 75 300 150 185 285 30 Pleasure travelers start their travel during one week, spend at least I weekend at their destination, and return the following week or thereafter. Business travelers usually start and complete their travel within the same workweek. They do not stay over weekends. Assume that round-trip fuel costs are fixed costs of $24,500 and that fixed costs allocated to the round-trip flight for airplane-lease costs, ground services, and…
Gateway Tours is choosing between two bus models. One is more expensive to purchase and maintain but lasts much longer than the other. Its discount rate is 10.8%. The company plans to continue with one of the two models for the foreseeable future. Based on the costs of each shown below, which should it choose? (Note: dollar amounts are in thousands.) Model Old Reliable Short and Sweet Year 0 - $199 - $98 Year 1 - $3.9 -$2.1 Year 2 - $3.9 -$2.1 Year 3 -$3.9 -$2.1 Year 4 -$3.9 -$2.1 Year 5 -$3.9 Year 6 - $3.9 Year 7 - $3.9 Based on the costs of each model, which should it choose? (Select the best choice below.) OA. Gateway Tours should choose Short and Sweet because the NPV of its costs is smaller. B. Gateway Tours should choose Old Reliable because it lasts longer. OC. Gateway Tours should choose Short and Sweet because the equivalent annual annuity of its costs is smaller. OD. Gateway Tours should choose Old Reliable because the equivalent annual annuity of its costs is smaller.
If a mountain bike originally cost the retailer $249.95, how much will a customer have to pay for it, if it is marked up by $95.50?
Honda Motor Company is considering offering a $2,100 rebate on its minivan, lowering the vehicle's price from $30,900 to $28,800. The marketing group estimates that this rebate will increase sales over the next year from 39,100 to 56,800 vehicles. Suppose Honda's profit margin with the rebate is $5,090 per vehicle. If the change in sales is the only consequence of this decision, what are its costs and benefits? Is it a good idea? Hint: View this question in terms of incremental profits. The cost of the rebate will be $ million. (Round to one decimal place.)