Suppose you are the Purchasing Manager for a large chain of restaurants in the United States, and you need to make your semiannu

Answer:

  a) 120 skiers daily

  b) 6.25% rise in revenue

Explanation:

a) Assuming each skier stays for an average of 10 days, the daily turnover corresponds to 1/10 of the total skiers, which results in 1200/10 = 120 skiers daily.

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b) For a duration of n days, the average expenditure for a skier is...

  50 +(n-1)30 = 20 +30n

and the average daily spending calculates to...

  (20 +30n)/n = (20/n) +30

Thus, for a 10-day visit, the average skiier's restaurant spending is...

  20/10 +30 = 32.... each day

Similarly, for a stay of 5 days, the average skier's expense becomes...

  20/5 +30 = 34.... each day

The anticipated change in restaurant revenue is...

  (34 -32)/32 × 100% = 2/32 × 100% = 6.25%

Restaurant revenues are projected to increase by 6.25% from the previous year.

Answer:

The right choice is option (D).

Explanation:

The scenario provides the following information:

Operating Income (EBIT) = $2,500,000

Depreciation Expense = $500,000

Tax rate = 40%

Net investment = $1,000,000

Thus, we can determine BBC's free cash flow using this formula:

= EBIT × (1 - Tax Rate) + Depreciation & Amortization - Net investment

Insert the values into the formula above:

So, the calculation becomes:

= $2,500,000 × (1 - 40%) + $500,000 - $1,000,000

= $1,500,000 + $500,000 - $1,000,000

= $1,000,000

a. Using FIFO, the Cost of Goods Sold (COGS) is $17,640, while the Ending Inventory equals $12,960. b. Under LIFO, COGS totals $19,160, while the Ending Inventory is $11,440. c. The Weighted Average COGS is $18,360, and the Weighted Ending Inventory is $12,240. For Cortez Company, the inventory particulars include initial stock of 100 units from $60/unit amounting to $6,000, first batch purchase of 150 units at $68 each totaling $10,200, and a second batch of 200 units at $72 each totaling $14,400, culminating in a total of 450 units valued at $30,600. Queries about how COGS and Ending Inventory figures manifest under various methods (FIFO, LIFO, and Weighted Average) can be addressed based on those computations.