The SnowCity Mall is trying to decide whether to build an indoor skating rink which would cost $500,000 and last for only one season. Operating costs would be zero. Yearly passes would be sold to anyone who wanted to use the rink. Market research reveals that the demand function for passes can be represented by: P = 1500 - 1.5Q, where P is the price of the pass in dollars. The Mall management has asked you to advise them on building the rink and determining what value should be set at. a. If SnowCity's rink is the only choice for skating enthusiasts in town, derive what price should be set for each seasonal pass. Also calculate the number of passes sold at this price. b. Given the price you derived in part (a), would you recommend to the SnowCity Mall's management that they should build the rink? Explain the justification for your recommendation.

Answers

Answer 1

If the total revenue is greater than $500,000, then the project would be profitable, and it would be recommended to build the rink.

a. To determine the price of each seasonal pass and the number of passes sold, we need to find the point where the demand curve intersects the cost of building the rink.

The cost of building the rink is $500,000, and the operating costs are zero. Therefore, the total cost is $500,000.

To find the price of each pass, we need to set the total revenue equal to the total cost:

Total Revenue = Total Cost

(Pass Price) * (Number of Passes Sold) = $500,000

The demand function for passes is given by P = 1500 - 1.5Q, where P is the price of the pass and Q is the quantity of passes sold.

Substituting the price and quantity into the total revenue equation, we get:

(Pass Price) * (1500 - 1.5Q) = $500,000

Solving for the pass price, we have:

Pass Price = $500,000 / (1500 - 1.5Q)

To find the number of passes sold at this price, we can substitute the pass price back into the demand function:

1500 - 1.5Q = Pass Price

Now we have two equations: one for the pass price and one for the quantity of passes sold. We can solve these equations simultaneously to find the values.

b. Whether SnowCity Mall should build the rink depends on the profitability of the project. If the revenue generated from selling the passes at the calculated price exceeds the cost of building the rink, then it would be recommended to proceed with the project.

To make this determination, we need to evaluate the total revenue generated by the passes and compare it to the cost:

Total Revenue = (Pass Price) * (Number of Passes Sold)

If the total revenue is greater than $500,000, then the project would be profitable, and it would be recommended to build the rink.

However, without knowing the specific values for the pass price and the number of passes sold, it is not possible to provide a definitive recommendation. These calculations need to be performed based on the derived equations to determine the profitability of the project.

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Related Questions

In this discussion, discuss the first four Crusades (1095-1204). What was the purpose of each Crusade? What were the various reasons the Crusaders had for joining in these expeditions? Were the Crusades justified in some way? Use historical examples to back up your answe

Answers

The Crusades were a series of military campaigns launched by Western European Christians between 1095 and 1204 with the primary aim of regaining control of the Holy Land (Jerusalem and the surrounding areas) from Muslim rule.

Each Crusade had its own specific purpose and motivations. Let's delve into the purpose and reasons for participation in the first four Crusades:

1. First Crusade (1096-1099):

Purpose: The primary purpose of the First Crusade was to capture Jerusalem from the Seljuk Turks, who had taken control of the city. It was a response to a plea for help from the Byzantine Emperor Alexios I, who sought military assistance against the expanding Muslim forces in the region.

Reasons for Participation: The motivations for joining the First Crusade varied among individuals and groups. Some were driven by religious fervor, seeking to reclaim the Holy Land and fulfill their religious duty. Others were enticed by the prospect of wealth, land, and social advancement that came with participating in the expedition. Some knights and nobles were also seeking adventure and glory.

2. Second Crusade (1147-1149):

Purpose: The Second Crusade was called in response to the fall of the County of Edessa to the Muslims. The Crusaders aimed to recapture the lost territories and protect the Christian states in the Levant.

Reasons for Participation: Similar to the First Crusade, religious devotion and the desire to protect Christian territories motivated many to join the Second Crusade. Additionally, European rulers saw an opportunity to expand their influence and secure alliances in the East. For example, King Louis VII of France sought to strengthen his position in the Holy Roman Empire and gain political prestige.

3. Third Crusade (1189-1192):

Purpose: The Third Crusade was launched after the fall of Jerusalem to the Muslim leader Saladin. Its main objective was to recapture Jerusalem and secure Christian control over key cities in the Holy Land.

Reasons for Participation: The Third Crusade attracted significant participation from European monarchs, including Richard the Lionheart of England, Philip II of France, and Frederick I Barbarossa of the Holy Roman Empire. For Richard the Lionheart, the primary motivation was to regain Jerusalem and protect Christian interests. Additionally, conflicts and rivalries among European leaders played a role in their decision to participate in the expedition.

4. Fourth Crusade (1202-1204):

Purpose: The Fourth Crusade initially aimed to recapture Jerusalem but veered off course and resulted in the sack of Constantinople, the capital of the Byzantine Empire.

Reasons for Participation: The motivations of Crusaders in the Fourth Crusade were complex and varied. Some were driven by religious fervor and the desire to fulfill their vow to free the Holy Land. Others, particularly the Venetians, had commercial interests and sought to secure trade routes in the Eastern Mediterranean. Political rivalries and personal ambitions also played a role in the participation of various factions.

Justification of the Crusades:

The Crusades were justified by those who participated based on religious, political, and economic reasons. From a religious perspective, they were seen as a holy endeavor to protect Christianity and reclaim the Holy Land. Political motivations included expanding influence, securing alliances, and diverting attention from internal conflicts in Europe. Economic factors, such as trade opportunities and acquiring wealth, also played a role.

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The Free enterprise system is:

A: Supply & Demand
B: Designed to protect consumers' best interests
C. Requires both sides of the story
D. Free of competition

Answers

Answer:

Free enterprise is the freedom of individuals and businesses to regulation. It enables individuals and businesses to create, produce, are able and willing, enterprising people produce goods and services for produce and sell goods and services. In this system, no one forces people they believe to be best for them.

when a fraudster feeds fictitious information into.the accounting system in order to manipulate report,ed results, this is called:'

Answers

When a fraudster feeds fictitious information, the accounting system manipulates reports, ed results, this is called beating the accounting system.

What is an accounting system?

An accounting system is a system of recording, storing and retrieving financial transactions. It is a system that provides information about a company's financial position. The purpose of an accounting system is to provide information that is useful in making business decisions. An accounting system typically includes a chart of accounts, a general ledger, and a trial balance. The chart of accounts is a list of all the accounts that a company uses to record its financial transactions. The general ledger is a record of all the financial transactions that have been recorded in the accounting system. The trial balance is a statement of the balances in all the accounts in the accounting system.

The accounting system is designed to make it difficult for people to beat the system. To beat an accounting system, one way is to use accounting software to create false invoices and to create false records of expenses. This can be done by creating false entries in the books of accounts. Another way to beat the system is to use false invoices to claim refunds from the government.

It can be concluded that when a fraudster feeds fictitious information. The accounting system manipulates reports, ed results, this is called beating the accounting system.

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This activity is important because it covers important terms for effective money management. The goal of this exercise is to identify the best ways to manage your personal finances. Complete each statement with the correct term. Note not all terms will be used.

Answers

Remainder Part of the Question:

Build Your Financial Base Terms:

The ______ is one of the best places to put your money.

A _______ is one of the worst places to keep long-term investments.

You can use a _______ to keep track of purchases.

Your _______ is likely to be the largest of the most important investments you make.

It is wise to plan your financial future with _______.

Available Options are:

Credit Card, Bank Account, Home, Uncertainity, Excitement, car, insurance, stock market, payday loan.

Answers:

A. Stock market

B. Bank Account

C. Credit Card

D. Home

E. Insurance

Explanation:

A. The Stock Market is one of the best places to put your money.

Stock markets are the source of raising funds for investments by the companies. The stock market helps the investor to choose the investment with appropriate returns and risks. Furthermore the investor can also diversify its return by managing the portfolio of investments.

B. A Bank Account is one of the worst places to keep long term investment

The lowest returns are on saving accounts hence it is the worst place for long term investments.

C. You can use Credit Card to keep a track of your purchases.

Credit cards can be used for tracking all of purchases because monthly statement mailed to you includes all the spendings during the year.

D. Your Home is likely to be the largest of the most important investments you make

Buying home is considered as one of the largest investments as it takes substantial savings of the person to buy an house. A roughly estimate would be the savings of 3-4 years for a small house for a couple.

E. It is wise to plan your financial future with Insurance.

Because Insurance helps you to lower your financial risks. The risk is associated with life, home, car, and physical assets and thus the investor must use insurance facility.

why adding payment options in the stands can increase a fan’s satisfaction at a sports
event?

Answers

The results of a partial least squares structural equation modeling analysis imply that aspects of the stadium, club management, and the fan-based support for the club are the most important determinants of fan satisfaction.

- BRAINLIEST answerer

Answer: The costumer would find it better and easier, which means sport event will make more profit because the fans are satisfied.

Hope this helped!


Which process refers to starting up a computer?

Answers

Which process refers to starting up a computer?

Ans: Booting

Economists typically rely on a broader measure of international trade known as the ____________, which includes ____________.

Answers

Economists typically rely on a broader measure of international trade known as the current balance trade; which includes goods, services, international income flows, and foreign aid.

Type the correct answer in the box. Spell all words correctly.
Which good customer service skill does Tony seem to possess?
Tony works as a customer service professional for a store that sells refrigerators. He met a customer who was furious with the store's service.
Apparently, the store had delivered the wrong refrigerator model to the customer's home address. Tony apologized on behalf of the store. He
told the customer that the store would quickly replace the product. He Interacted with the customer for a while and promised that the store
would never give the customer a chance to complain in the future. Tony's ________
helped him make the customer believe
In the store's service.

Answers

Answer:

professional manner and reassurance

You are a project manager in charge of putting together a one-day weekend concert for four musical acts in a small town. The concert is to take place on August 1. During planning, it was decided that the concert would take place in a field that was offered for free by a local farmer. This location was chosen with the assumption that there would be less than a 60% chance of rain in the weather forecast for the concert date. An alternate location at the town's community center was chosen if the chance of rain is 60% or higher and would be provided for free. Regardless of the location chosen, it will not affect the schedule. The actual vendor location used will have to be decided and approved by end of day July 28. Once the decision has been made and approved, what should you do NEXT

Answers

Answer: Implement a risk response plan in order to ensure availability of alternate venue location

Explanation:

Once the decision has been made and approved, the next thing to do is to implement a risk response plan in order to ensure that the alternate venue location is available.

Risk response planning simply means having other options in order to improve opportunities and so that the threat to the achievement of s particular objective can be minimized.

In this case, it is important that the alternative location is available in case there's a rain.

In the foreign exchange markets, there are two common type of tractions that took place daily. These include spot transactions and forward transactions. Discuss at least two circumstances hov forward market transaction help to hedge possible risk exposure

Answers

Forward market transactions help hedge possible risk exposure by addressing exchange rate volatility and providing stability for business planning and budgeting purposes.

In foreign exchange markets, forward market transactions are commonly used to hedge potential risk exposures in the following circumstances:

1. Exchange Rate Volatility: When there is significant uncertainty about future exchange rates, forward transactions can help mitigate the risk. For instance, if a company expects the value of a foreign currency to decline in the future, they can enter into a forward contract to buy that currency at a predetermined rate. By doing so, they can lock in a favorable exchange rate and protect themselves against potential losses due to currency depreciation.

2. Business Planning and Budgeting: Companies often engage in international trade and have financial obligations in multiple currencies. In such cases, forward transactions provide a way to manage risk by fixing exchange rates in advance. This enables businesses to forecast their costs and revenues more accurately, facilitating better planning and budgeting. For example, a company can enter into a forward contract to sell a foreign currency it will receive in the future at a predetermined rate, ensuring a known amount of domestic currency regardless of exchange rate fluctuations.

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Jem wants to make sure the gaming system she wants to buy includes
access to live events. What should Jem do to ensure she makes an informed
buying decision?
O A. Jem should consult friends on social media.
O B. Jem should review warranties and return policies.
O C. Jem should make the purchase with confidence.
O D. Jem should read the product description carefully.

Answers

Your answer will be D

Answer:

D. Jem should read the product description carefully.

Explanation:

On December 1, Year 1, Jack's Snow Removal Company received $10,500 of cash in advance from a customer and promised to provide services for that customer during the months of December, January, and February. How will the Year 1 year-end
adjustment to recognize the partial expiration of the contract impact the financial statements model?

Answers

The year-end adjustment will involve recognizing the earned revenue of $3,500 as well as reducing the unearned revenue by $3,500 in the balance sheet.

The year-end adjustment to recognize the partial expiration of the contract will impact the financial statements model by decreasing Jack's Snow Removal Company's revenue and net income in Year 1. This is because the cash received in advance ($10,500) is considered to be unearned revenue until the services are provided. When the services are provided, the unearned revenue will be recognized as earned revenue.

The revenue earned for each of the three months can be calculated as follows:

December:

$10,500 ÷ 3

= $3,500

January: $10,500 ÷ 3

= $3,500

February:

$10,500 ÷ 3

= $3,500

At the end of December, Year 1, one-third of the contract has been fulfilled, so the company has earned $3,500 of the cash received in advance. The year-end adjustment will involve recognizing the earned revenue of $3,500 as well as reducing the unearned revenue by $3,500 in the balance sheet. This adjustment will decrease the company's revenue and net income in Year 1 by $3,500.

The impact on the financial statements model is as follows:

Income statement: Revenue will be reduced by $3,500.

Net income will be reduced by $3,500.

Balance sheet: Unearned revenue will be reduced by $3,500.

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Stock Y has a beta of 1.45 and an expected return of 16.3 percent. Stock Z has a beta of .90 and an expected return of 12.6 percent. What would the risk-free rate have to be for the two stocks to be correctly priced relative to each other?

Answers

Answer:

risk free rate= 6.55%

Explanation:

expected return= risk-free rate +Beta*(Market rate- risk-free rate )

Stock Y

16.3=Rf+1.45(Rm-Rf)

16.3=1.45Rm-0.45Rf

Rm=(16.3+0.45Rf)/1.45

Stock Z

12.6=Rf+0.9*(Rm-Rf)

12.6=0.9Rm+0.1Rf

12.6=0.9(16.3+0.45Rf)/1.45+0.1Rf

risk free rate=(12.6-10.11724138)/(0.279310344+0.1)

risk free rate= 6.55%

to implement the marketing concept, a firm must first

Answers

Answer:

obtain information about its customers' needs

Explanation:

You must know what your customers' needs are before you try to satisfy them.

d. How does the credit spread change with the bond? rating? Why????(Select the best choice? below.)
A. The credit spread decreases as the bond rating rises because? higher-rated bonds are riskier.
B. The credit spread decreases as the bond rating falls because? lower-rated bonds are riskier.
C. The credit spread increases as the bond rating rises because? higher-rated bonds are riskier.
D. The credit spread increases as the bond rating falls because? lower-rated bonds are riskier.

Answers

The credit spread increases as the bond rating falls because lower-rated bonds are riskier. So, the correct answer is D.

A credit spread is the difference in yield between two bonds of similar maturity but with different credit ratings. The credit spread can be an important factor in determining the relative value of two bonds.

When an investor buys a bond, they are essentially lending money to the bond issuer. The investor expects to receive regular interest payments and the return of their principal when the bond matures.

However, there is always a risk that the bond issuer may default on its payments or go bankrupt, in which case the investor may not receive their expected returns.

Bonds with lower credit ratings are considered riskier because the likelihood of the bond issuer defaulting is higher. To compensate for this higher risk, investors demand a higher yield (or interest rate) on these bonds.

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outline 2 advantages to H&H of using secondary market research​

Answers

Answer:

Explanation:
It provides quick information and factual background perspectives
It is less expensive and affordable

Dowell company produces a single product. its income statements under absorption costing for its first two years of operation follow.
income statements (absorption costing) year 1 year 2
sales ($53 per unit) $ 1,113,000 $ 3,339,000
cost of goods sold ($38 per unit) 798 2,394,000
gross profit 315 945
selling and administrative expenses 282 366
income $ 33,000 $ 579,000
additional information
1. sales and production data for these first two years follow. units year 1 year 2
units produced 42 42
units sold 21 63
2. variable costs per unit and fixed costs per year are unchanged during these years. the company's $38 per unit product cost using absorption costing consists of the following. direct materials $ 12
direct labor 12
variable overhead 6
fixed overhead ($336,000/42,000 units) 8
total product cost per unit $ 38
3. selling and administrative expenses consist of the following. selling and administrative expenses year 1 year 2
variable selling and administrative ($2 per unit sold) $ 42,000 $ 126,000
fixed selling and administrative 240 240
total $ 282,000 $ 366,000
required:
prepare income statements for each of these two years under variable costing. (loss amounts should be entered with a minus sign.)

Answers

Dowell company produces a single product. Net income for 2016 will be $10,000 and for 2017, it will be $260,000.

An income statement is a summary of a company's expenses and revenues for a given time period. Manufacturing and administrative costs are common expenses.

Dowell Company

Variable Costing Income Statement

For the year ended 2016 and 2017

Particular                       Amounts ($) 2016                 Amount 2017($)

Sales                               9200(20000 x 4)               1,840,000 (40000*46)

Less: Variable costs

Direct material              (20000 x 5) 100,000             (40000 x 5) 200,000

Direct labor                  (20000 x 9) 180,000            (40000 x 9)  360,000

Variable overhead        (20000 x 7) 140,000             (40000 x 7) 280,000

Variable selling and

administrative expense  (20000 x 2.50) 50,000  (40000 x 2.50) 100,000

Contribution margin            $450,000                            $900,000

Less: Fixed costs

Fixed selling and

administration expenses      240,000                                240,000

Fixed overhead                     300,000                               300,000

Net Income                           $(90,000)                              $360,000

Reconciliation of variable costing income/(loss)

Particulars                                Amounts ($) (2016)          Amounts ($) (2017)

Net loss from variable costing        (90,000)                           $360,000

Add: Variable fixed overhead

in ending inventory               ( 10000 x 10) 100,000  (10000 x 10)100,000

Net income from

absorption costing                            $10,000                         $260,000

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Someone help me in my homework please?

Someone help me in my homework please?

Answers

Answer:

im sorryi wish i was good at math

Explanation:

im failing math btw

Can someone pls help me ASAP due today and I will mark brainlist

Can someone pls help me ASAP due today and I will mark brainlist

Answers

Answer:

Report her to my boss/ manager

No. You should not call in fake sick, unless you would like to get fired

Wait until you have some down time to call her real quick, right now, you have work that needs to be done

keep the money

Report your coworker or demand they pay for it

Which industry is the second-largest employer of teens
and young people?
What percentage of employed teens are employed by
the government?​

I got it
is retail trade
and 7%

Answers

Answer:

I. Retail industry

ii. 7%

Explanation:

Retail industry is the second largest employers of teen and young people next to health sector which is the largest employer.

Retailing involves buying goods either from the producers or wholesaler and selling them to the final consumers. Some services are also offered in these retailing such as call center representative, those who work in innovation lab. etc

In the United States, about 7% of teens and young people are in the employment of government , while retail industry is the largest employer of teen and young people because it provides flexibility and also do not involve much academic qualifications.

Example of these retail jobs are those who work in call center, sales representatives and those who works in stores.

Answer:

Retail Trade

7%

Explanation:

Edge 2020

What economic principle best demonstrates the importance of advertising?
a. utilitarian principle
b. opportunity cost principle
c. normative theory
d. abundance principle
e. theory of supply and demand

Answers

Abundance principle best demonstrates the importance of advertising.

What is the financial importance of advertising?

Advertising performs a sturdy role in the economy: It offers useful statistics to customers that tells them about product and provider choices, as properly as evaluating features, benefits, and prices. With more complete information, customers and companies often pick out to purchase additional products and services.

Advertising gives economic cost to society in many ways. It enhances purchaser choice making with the aid of providing facts and through helping manufacturer names. It presents an efficient skill for firms to communicate with their customers. Such a feature is mainly necessary in the introduction of new products.

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the manager at creative minds inc. is distressed that employee absenteeism increased by 16% in the past year. how would you recommend the manager respond to this inside force?

Answers

I will recommend that the manager identify the frequently absent employees and replace them with artificial intelligence.

Today, the artificial intelligence is a modern technology which performs the function of employees more efficiently and effectively.

The artificial intelligence such as software package that perform a work process automatically does not makes mistakes and does not appear absent as place of work.

Therefore, i will recommend that the manager identify the frequently absent employees and replace them with artificial intelligence.

The option includes "a. Evaluate the HR practices to ensure they are generating the behaviors needed to accomplish strategic goals. b. Identify the frequently absent employees, and replace them with artificial intelligence c. Remind employees about how Creative Minds is genuinely connected to supporting youth art programs. d. Demonstrate how the firm is committed to simultaneously tackling global social issues and maximizing shareholder wealth."

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Answer:

Identify the frequently absent employees, and replace them with artificial intelligence.

Explanation:

John F. Kennedy believed that a leader should be _____. A. elected B. successful C. a lifelong student D. in the military

Answers

John F. Kennedy believed that a leader should be successful .

He believes that as one is been elected by the people to be their leader, one should have a passionate vision to be successful. Option  b  

What was John F. Kennedy Values for a  Successful  Leadership

John F. Kennedy has  set series of Values and Rules, that can lead us and give us the insight on how to be a Successful leader.

John F. Kennedy,  as the President of the United States, was a high level Charismatic Leader and sets of  Values that should mold any Successful Leader which are

The leader should be able to  guide and  identify the way forward for a better future.A leader should be able to set a high standards what is doing what is need to done at the right time and doing them well.Set high goals and fixed your targetExpress your convictions of value and stick to them.Fight for freedom, rights for the people. Resolve differences.  Create a better future.appreciate others for their contribution.

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The price of a stock is: Question 7 options: the future value of all expected future dividends, discounted at the dividend growth rate. the present value of all expected future dividends, discounted at the dividend growth rate. the future value of all expected future dividends, discounted at the investors required return. the present value of all expected future dividends, discounted at the investors required return.

Answers

Answer:

the present value of all expected future dividends, discounted at the investors required return.

Explanation:

The price of the stock is the present value of all expected future dividends, discounted at the investors required return.

dividend models can be used in determining the value of a stock. some of them include:

1. The Gordon constant growth dividend model

2. The two-stage dividend growth model

3. The H-model

4. The three-stage dividend growth model

For example, if a firm would pay $5 as dividend in the coining year. Required return of an investor is 10% and growth rate is 5%. price is 100

according to the constant dividend growth model

price = d1 / (r - g)

d1 = next dividend to be paid

r = cost of equity

g = growth rate

5 / 0.1 - 0.05 = 100

What is one thing shared lane markings are not used for?.

Answers

The one thing that the shared lane markings are not used for is Decreasing the possibility of Highway Hypnosis.

What are the shared lane markings?

Shared lane markings are the road markings that indicate a shared lane environment.

The shared lanes may be for bicycles and automobiles.

The shared lane markings, also known as Sharrows, can also:

Guide bicyclists away from the hazardous "door zone" beside parked cars.Function as positioning cues.

Thus, the one thing that the shared lane markings are not used for is Decreasing the possibility of Highway Hypnosis.

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firms are typically more successful when they focus on opportunities that build on their strengths relative to those of their competition. (true or false)

Answers

The given statement ''firms are typically more successful when they focus on opportunities that build on their strengths relative to those of their competition.'' is true.

What do you mean by business firm?A firm is a for-profit business entity that offers professional services, such as a corporation, limited liability company (LLC), or partnership.A company, such as a corporation, is a business organisation that manufactures and sells products and services with the intention of generating income and turning a profit.A business firm is either a partnership or a Sole proprietorship. It may be owned by a person or a business (e.g. Pte Ltd). Being a "legal person," a company is able to establish and own a business entity. A business firm cannot register another business firm since it is not a legal entity.

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3- Use the following data to answer the questions below:
Category
Billions of Dollars
Consumption $200
Investment $ 50
Government Spending $ 60
Exports $ 70
Imports $ 80
Depreciation $ 10
Foreign Factor Income $ 10
Please answer in whole numbers.
a. How much is net exports? $
b. How much is net investment? $
c. How much is GDP? $
d. How much is Net Domestic Product? $
e. How much is National Income?$

Answers

Explanation:

a. Net exports = Exports - Imports = $70 - $80 = -$10 b. Net investment = Investment - Depreciation = $50 - $10 = $40 c. GDP = Consumption + Investment + Government Spending + Net Exports = $200 + $50 + $60 - $10 = $300 d. Net Domestic Product = GDP - Depreciation = $300 - $10 = $290 e. National Income = Net Domestic Product + Foreign Factor Income = $290 + $10 = $300

Medicare is a government program funded by tax dollars to:
A-provide health insurance to children in a recount
B-provide health insurance to working adults
C-provide hospital insurance for those over 65

Answers

Medicare is provided to give health insurance to working adults the answer is B

Answer: C

Explanation: Trust me

Which step directly follows "loss of jobs” in the stagflation cycle?

Answers

Answer:

fewer items produced

Explanation:

Answer:

D

Explanation:

A new company can offer stocks in an initial public offering (IPO) before the company has proven itself capable of generating long-term profits for its stockholders. If the company seems likely to generate profits, the stock price in the IPO will rise; if the company seems less likely to generate profits, the stock price in the IPO will fall. Today business analysts announced that the Tenon Corporation has turned a profit in the financial quarter just completed. Therefore, stock prices for the Tenon Corporation's IPO, which is planned for next week, will rise.

Which of the following, if true, most weakens the argument above?

A. Companies that do not have profitable quarters are not profitable in the long run.
B. Stock price predictions for the Tenon Corporation's IPO have varied markedly over the last several months.
C. The last financial quarter has proven profitable for numerous other companies in addition to the Tenon Corporation.
D. Industry experts announced today that the raw materials from which the Tenon Corporation manufactures its products will become prohibitively expensive within the next month.
E. Most people who purchase stocks in an IPO decline to attend stockholders' meetings of the companies in which they own stock.

Answers

Answer: D. Industry experts announced today that the raw materials from which the Tenon Corporation manufactures its products will become prohibitively expensive within the next month.

Explanation:

Costs eat into the profits of a company because the higher the costs of producing something, the less profit can be made after the costs are covered.

If there is a situation therefore, where the raw materials that Tenton relies on becomes more expensive, it is definitely going to affect their profitability because they will incur a higher cost to produce.

This will reduce their future profitability which would mean that Tenton becomes less likely to generate a certain level of profit in future thereby weakening their stock according to the logic above.

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