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The builder of a new movie theater complex is trying to decide how many screens she wants. Below are her estimates of the number of patrons the complex will attract each year, depending on the number of screens available. After paying the movie distributors and meeting all other non-interest expenses, the owner expects to net $2.00 per ticket sold. Construction costs are $1,000,000 per screen. (a) Make a table showing the value of the marginal product for each screen from the first through the fifth. What property is illustrated by the behavior of marginal products? # of screens Total # of patrons Additional patrons Value of marginal (marginal product) Product ($1M/screen) 1 40,000 2 75,000 3 105,000 4 130,000 5 150,000 (b) How many screens will be built if the real interest rate is 5.5 percent? (c) If the real interest rate is 7.5 percent? (d) If the real interest rate is 10 percent? (e) If the real interest rate is 5.5 percent, how far would construction costs have to fall before the builder would be willing to build a five-screen complex? The builder of a new movie theater complex is trying to decide how many screens she wants. Below are her estimates of the number of patrons the complex will attract each year, depending on the number of screens available. After paying the movie distributors and meeting all other non-interest expenses, the owner expects to net $2.00 per ticket sold. Construction costs are $1,000,000 per screen.
Describe advantages and disadvantages of organizing your scuba diving school as a: 1. Sole proprietorship 2. Corporation, and give your opinion about which form of organization would be best.
High Air reported a $15,000 loss for its X9 calendar year. Explain how much loss can Gerald deduct, and how much loss must he suspend if he only applies the tax basis loss limitation?
The contract required 5 equal annual payments with the first payment due on 1 st December, 2012, the date of the sale. Find what present value concept is appropriate for this situation?
how much money would you have to pay each year in 8 equal payments, starting 2 years from today, to repay a $20,000 loan received from a relative today, if the interest rate is 8% per year?
evaluate the amount of funds ms.crawley needs to borrow for June, suppose that the beginning cash balance is zero and evaluate the amount of interest expense the restaurant will report on June pro forma income statement.
One area of exacting concern is the inventory account, which has a year-end balance of $297,000. Discussions with the accountant reveal the subsequent.
Cash flows from operating activities and Net income will be increased or adjusted upward and Net income will be decreased or adjusted downward.
"what are the main characteristics of intangible assets? Intangibles have either a limited useful life or an indefinite useful life. How should these two different types of intangibles be amortized?"
For the year ended December 31, 2011, Bolivar reported net income of $312,000 and paid cash dividends of $96,000. Required: Prepare a schedule to show the balance Jenkins should report as its Investment in Bolivar Co. at December 31, 2011.
jenny's has annual sales of $367,200 and cost of goods sold of $198,600. the average accounts receivable balance is $16.400. how many days on average does it take the firm to collect its accounts receivable?
Abbey Co. issued a credit memo for $2,500 for merchandise returned that originally cost $1,800. Gomez Co. paid the invoice within the discount period. What is the amount of gross profit earned by Abbey Co.?
How might fundamentally changing accounting standards from "bright-line" rules to principle-based standards help prevent another Enron-like fiasco in the future? Are there dangers in removing "bright-line" rules? What difficulties might be associa..
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