Business, 22.09.2020 07:01 miyae90

Parrish Plumbing provides plumbing services to residential customers from Monday through Friday. Ken Parrish, the owner, believes that it is important for his imployees to have Saturday and Sunday off to spend with their families. However, he also recognizes that this policy has implications for profitability, and he is considering staying open on Saturday. Ken estimates that if his company stays open on Saturday, it can generate $2500 of daily revenue each day for 52 days per year. The incremental daily costs will be $700 for labor, $500 for parts, $100 for transportation, and $200 for office staff. These costs do not include a share of monthly rent or a share of depreciation related office equipment.

Ken is determined not to have employees work on Sunday, but he would like to know the opportunity cost of not working on Saturday. Provide Ken with an estimate of the opportunity cost, and explain why you do not have to consider rent or depreciation of office equipment in your estimate.

Answers: 3

Show answers

Another question on Business

Business, 22.06.2019 07:30

Fill in the missing words to correctly complete each sentence about analyzing a job posting. when reviewing a job posting, it’s important to check theto determine whether it’s worth your time to apply. if the post has been up for a while or it’s already closed, move on to the next position. if it’s still available, take note of when it closes so you’ll know when you mayfrom the company in regard to an interview.

Answers: 1

Answer

Business, 22.06.2019 10:10

At the end of year 2, retained earnings for the baker company was $3,550. revenue earned by the company in year 2 was $3,800, expenses paid during the period were $2,000, and dividends paid during the period were $1,400. based on this information alone, retained earnings at the beginning of year 2 was:

Answers: 1

Answer

Business, 22.06.2019 16:00

Three pounds of material a are required for each unit produced. the company has a policy of maintaining a stock of material a on hand at the end of each quarter equal to 30% of the next quarter's production needs for material a. a total of 35,000 pounds of material a are on hand to start the year. budgeted purchases of material a for the second quarter would be:

Answers: 1

Answer

Business, 23.06.2019 09:30

Ronald sees that his employer's stock has grown from $20 a share to $60 a share this year, while most stocks have seen only 5% growth. his employer offers to let him convert a large portion of his salary into stock options. what is not a valid reason to turn down the stock offer? a)stocks with high returns have high volatility, and ronald's company may not grow further. b)ronald may be taxed more for capital gains than he would be for employment income. c)stock options are illiquid, and ronald may not be able to use them to pay for unexpected bills. d)ronald would be committing stock fraud if he exercises the options.

Answers: 1

Answer

You know the right answer?

Parrish Plumbing provides plumbing services to residential customers from Monday through Friday. Ken...

Questions

Business, 01.07.2020 14:53

Consider a $400 million pass-through MBS that has just been created (so the 'seasoning' of the pass-through is equal to 0). The underlying pool of mor...