Answer:

**Answer:**

$378.75

**Explanation:**

Data provided:

Capacity = 440 passengers

Operating cost = $4,000 + $70(Number of passengers)

Expected number of passengers = 440 - 0.64T

Ticket price = T

Total operational cost = $4000 + $70( 440-0.64T )

Total operational cost = $34,800 - 44.8T

Thus,

Total revenue = Number of passengers × Ticket price

= (440 - 0.64T)T

= 440T - 0.64T²

also,

Total profit ,P(T) = Total revenue - Total operational cost

P(T) = ( 440T - 0.64T²) - (34,800 - 44.8T)

P(T) = - 0.64T² - 34,800 + 484.8T

Now,

Differentiating with respect to ticket price T

P'(T) = -0.64(2)T - 0 + 484.8(1)

or

P'(T) = - 1.28T + 484.8 ..............(1)

For point of maxima or minima

P'(T) = 0

or

- 1.28T + 484.8 = 0

or

1.28T = 484.8

or

T = $378.75

now,

again differentiating (1) to check for maxima or minima

P''(T)= -1.26(1) + 0

P''(T) = -1.26

Since,

P"(T) < 0

Hence,

T = **$378.75** will maximise the profit

Answer:
### Final answer:

### Explanation:

### Learn more about Profit maximization here:

The airline's profit can be maximized with a ticket price of approximately **$289.84** as calculated from the provided mathematical model. However, real-world variables may affect actual optimal pricing.

In this case, the **airline's profit** function (revenue minus costs) can be written as: P(T) = T*(440 - 0.64T) - (4000 + 70*(440 - 0.64T)). To maximize profit, you would take the derivative of P(T) with respect to T, resulting in the following polynomial: P'(T) = 440 - 1.28T - 70. Setting this **derivative **equal to zero and solving for T yields a ticket price of approximately $289.84.

Another way to check this solution would be to create a graph of the function P(T) and visually identify the maximum point. Mind you, this method requires **precision **and may not generate the accurate result as the calculus method.

It's important to keep in mind that this is a **simplified **model and doesn't account for other factors which can affect ticket pricing in the real world, such as competition, fuel prices, and demand for specific flights. That being said, this exercise highlights how mathematical models can be used in economics and business to optimize profit by adjusting **pricing strategies**.

#SPJ3

Marlow Company purchased a point of sale system on January 1 for $5,600. This system has a useful life of 4 years and a salvage value of $500. What would be the depreciation expense for the second year of its useful life using the double-declining-balance method?a. $1,275.b. $1,336.c. $2,550.d. $2,800.e. $1,400.

Plowin' Supply plans to make 15,000 tractors at its plants. Fixed costs are $600,000 and variable costs are $200 per tractor. What is the average cost per tractor?(a) $200(b) $240(c) $40(d) $75

The balance sheet of Indian River Electronics Corporation as of December 31, 2017, included 13% bonds having a face amount of $90.3 million. The bonds had been issued in 2010 and had a remaining discount of $3.3 million at December 31, 2017. On January 1, 2018, Indian River Electronics called the bonds before their scheduled maturity at the call price of 102. Required: Prepare the journal entry by Indian River Electronics to record the redemption of the bonds at January 1, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.)

A university spent $1.3 million to install solar panels atop a parking garage. These panels will have a capacity of 200 kilowatts (kW) and have a life expectancy of 20 years. Suppose that the discount rate is 30%, that electricity can be purchased at $0.30 per kilowatt-hour (kWh), and that the marginal cost of electricity production using the solar panels is zero.Hint: It may be easier to think of the present value of operating the solar panels for 1 hour per year first. Approximately how many hours per year will the solar panels need to operate to enable this project to break even?

Motors is a chain of car dealerships. Sales in the fourth quarter of last year were $4,600,000. Suppose management projects that its current year's quarterly sales will increase by 3% in quarter 1, by another 7% in quarter 2, by another 5% in quarter 3, and by another 4% in quarter 4. Management expects cost of goods sold to be 45% of revenues every quarter, while operating expenses should be 30% of revenues during each of the first two quarters, 25% of revenues during the third quarter, and 20% during the fourth quarter.Required:a. Prepare a budgeted income statement for each of the four quarters and for the entire year.b. Prepare the first portion of the budgeted income statement through gross profit, then complete the statement.

Plowin' Supply plans to make 15,000 tractors at its plants. Fixed costs are $600,000 and variable costs are $200 per tractor. What is the average cost per tractor?(a) $200(b) $240(c) $40(d) $75

The balance sheet of Indian River Electronics Corporation as of December 31, 2017, included 13% bonds having a face amount of $90.3 million. The bonds had been issued in 2010 and had a remaining discount of $3.3 million at December 31, 2017. On January 1, 2018, Indian River Electronics called the bonds before their scheduled maturity at the call price of 102. Required: Prepare the journal entry by Indian River Electronics to record the redemption of the bonds at January 1, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.)

A university spent $1.3 million to install solar panels atop a parking garage. These panels will have a capacity of 200 kilowatts (kW) and have a life expectancy of 20 years. Suppose that the discount rate is 30%, that electricity can be purchased at $0.30 per kilowatt-hour (kWh), and that the marginal cost of electricity production using the solar panels is zero.Hint: It may be easier to think of the present value of operating the solar panels for 1 hour per year first. Approximately how many hours per year will the solar panels need to operate to enable this project to break even?

Motors is a chain of car dealerships. Sales in the fourth quarter of last year were $4,600,000. Suppose management projects that its current year's quarterly sales will increase by 3% in quarter 1, by another 7% in quarter 2, by another 5% in quarter 3, and by another 4% in quarter 4. Management expects cost of goods sold to be 45% of revenues every quarter, while operating expenses should be 30% of revenues during each of the first two quarters, 25% of revenues during the third quarter, and 20% during the fourth quarter.Required:a. Prepare a budgeted income statement for each of the four quarters and for the entire year.b. Prepare the first portion of the budgeted income statement through gross profit, then complete the statement.

b. How much of the $30,000 distributed to Clare is included in her gross income? $ is included in her gross income.

c. The distributions which are composed of trust accounting income that is required to be distributed currently come under .

**Answer:**

a)

Results for Renee are as follows:

After the first tier distributions ($60000/2 = $30000 to each income beneficiaries) are accounted for, $100000 DNI remains to be assigned to the beneficiaries on the second tier ($160000 DNI - $60000 DNI used for first tier distribution).

** Amount received DNI received = Gross income,**

portfolio income

First tier $30,000.00 $30,000.00

Second tier $1,20,000.00 $ 1,00,000.00

Total $1,50,000.00 $ 1,30,000.00

b)

Results for Clare are as follows:

** Amount received DNI received = Gross income,**

portfolio income

First tier $30,000.00 $ 30,000.00

Second tier $ - $ -

Total $30,000.00 $ 30,000.00

c)

The distributions which are composed of trust accounting income that is required to be distributed currently come under First Tier Distribution.

**Answer:**

True

**Explanation:**

I believe it's true. If we have a job opening for sales personnel and candidate is physically unable to walk or drive, then yes we can exclude that candidate. But once hiring manager is sure of the fact that disability will render that candidate unable to work then manager can preclude that candidate.

**Answer:**

**$53,240**

**Explanation:**

We know that,

**Break even point = Fixed cost ÷ contribution margin ratio**

$290,400 = Fixed cost ÷ 55%

So, the fixed cost = $290,400 × 55% = **$159,720**

As the variable expense is 45% and we assume the sales is 100%, so the contribution ratio would be 100% - 45% = 55%

Now the margin of safety equal to

**= (Expected sales - break even sales) ÷ (expected sales) × 100**

25% = (Expected sales - $290,400) ÷ (expected sales) × 100

25% Sales = (Expected sales - $290,400)

So, the expected sales would be

= $290,400 ÷ 75%

**= $387,200**

Now the actual profit equals to

**= Sales - variable expenses - fixed cost**

= $387,200 - $174,240 - $159,720

**= $53,240**

The variable expense is computed below:

= $387,200 × 45%

= $174,240

**Answer:**

The budgeted accounts receivable balance at the end of February is closest to: **$4,500**.

**Explanation:**

Prepare a Accounts Receivable Budget for January and February

**January February**

Balance b/d $0 $4,200

Credit Sales $7,000 $7,500

Cash Received (40%) ($2,800) ($3,000)

Cash Received (60%) $0 ($4,200)

Balance c/d $4,200 $4,500

Conclusion:

Therefore, the budgeted accounts receivable balance at the end of February is closest to: $4,500

1 $15,750 $26,250 $35,000

2 15,750 21,000 21,000

3 15,750 15,750 12,600

4 15,750 10,500 7,560

5 15,750 5,250 2,590

Total $78,750 $78,750 $78,750

Required:

a. What is the cost of the asset being depreciated?

b. What amount, if any, was used in the depreciation calculations for the salvage value for this asset?

c. Which method will produce the highest charge to income in Year 1?

d. Which method will produce the highest charge to income in Year 4?

e. Which method will produce the highest book value for the asset at the end of Year 3?

f. If the asset is sold at the end of Year 3, which method would yield the highest gain (or lowest loss) on disposal of the asset?

**Answer:**

a. What is the cost of the asset being depreciated?

the cost of the asset = $35,000 / 0.4 = $87,500

b. What amount, if any, was used in the depreciation calculations for the salvage value for this asset?

salvage value = $87,500 - (5 x $15,750) = $8,750

c. Which method will produce the highest charge to income in Year 1?

double declining results in the highest depreciation expense

d. Which method will produce the highest charge to income in Year 4?

straight line results in the highest depreciation expense

e. Which method will produce the highest book value for the asset at the end of Year 3?

straight line, book value = $87,500 - (3 x $15,750) = $40,250

f. If the asset is sold at the end of Year 3, which method would yield the highest gain (or lowest loss) on disposal of the asset?

double declining balance, since the carrying value is lowest = $87,500 - $35,000 - $21,000 - $12,600 = $18,900

e.g. if the assets is sold at $30,000, the gain = $11,100

under straight line method a $30,000 resale price would result in a loss(= $30,000 - $40,250 = -$10,250), while sum of years' digit would result in a gain = $30,000 - ($87,500 - $26,250 - $21,000 - $15,750) = $5,500

**Answer:**

The Best Cost System is the **"Process Costing System"**

**Explanation:**

A Process Costing System amasses costs when an enormous number of indistinguishable units are being created. Right now, is generally proficient to collect expenses at a total level for an enormous group of items and afterward dispense them to the individual units delivered. The supposition that will be that the expense of every unit is equivalent to that of some other unit, so there is no compelling reason to follow data at an individual unit level. The great case of a procedure costing condition is an oil treatment facility, where it is difficult to follow the expense of a particular unit of oil as it travels through the processing plant.

Answer: Process costing system.

Explanation: A process costing system used in the manufacturing industry that accumulates the costs of producing a continuous stream of similar items.

It is calculated thus:

Cost per unit = cost of unit/ expected output in unit.

Using process costing method is very efficient to accumulate costs at an aggregate level for a large batch of products and then allocate the cost to the individual units produced.

There are three types of process costing and they are:

1. Weighted Average Cost

2. FIFO - First In First Out

3. Standard Cost