This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Flowers.com is earning a total revenue of 100,000 per year. Its annual total fixed costs are 25,000 ... (Read 60 times)

j.rubin

  • Hero Member
  • *****
  • Posts: 557
on: Jun 29, 2018
Flowers.com is earning a total revenue of 100,000 per year. Its annual total fixed costs are 25,000 and its annual total variable costs are 75,000 . What is the operating profit for Flowers.com? What is economic profit?
 
  What will be an ideal response?

Question 2

If you own a bond with a six percent coupon rate and new bonds are paying six percent, what will happen to your bond's market price?
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

katkat_flores

  • Sr. Member
  • ****
  • Posts: 328
Reply #1 on: Jun 29, 2018
Answer to Question 1

Operating profit is revenue minus variable costs (100k - 75k) equals operating profit of 25k. Economic profit is revenue minus total costs (100k - 100k) equals 0 .

Answer to Question 2

It will not change.


j.rubin

  • Member
  • Posts: 557
Reply 2 on: Jun 29, 2018
Excellent

mohan

  • Member
  • Posts: 362
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

Adolescents often feel clumsy during puberty because during this time of development, their hands and feet grow faster than their arms and legs do. The body is therefore out of proportion. One out of five adolescents actually experiences growing pains during this period.

Did you know?

The human body produces and destroys 15 million blood cells every second.

Did you know?

The word drug comes from the Dutch word droog (meaning "dry"). For centuries, most drugs came from dried plants, hence the name.

Did you know?

About 3.2 billion people, nearly half the world population, are at risk for malaria. In 2015, there are about 214 million malaria cases and an estimated 438,000 malaria deaths.

Did you know?

The calories found in one piece of cherry cheesecake could light a 60-watt light bulb for 1.5 hours.

The phosphorus cycle. Numbers are 1012 g P or fluxes as 1012 g P per year (data from Schlesinger 199 The phosphorus cycle. Numbers are 1012 g P or fluxes as 1012 g P per year (data from Schlesinger 199
Should We Prolong Life at all Costs? Should We Prolong Life at all Costs?
Annual Earthquake Occurrence Annual Earthquake Occurrence
Sadie is going to see a movie and is taking her four kids. each movie ticket costs $15 and ... Sadie is going to see a movie and is taking her four kids. each movie ticket costs $15 and ...
Jia's Fashions recently paid a $2 annual dividend. The company is projecting that its ... Jia's Fashions recently paid a $2 annual dividend. The company is projecting that its ...
One year ago, Christos bought 1000 units of the Dominion Aggressive Growth Fund at $20.35 per ... One year ago, Christos bought 1000 units of the Dominion Aggressive Growth Fund at $20.35 per ...
Video: Contraction cycle of a sarcomere

For a complete list of videos, visit our video library