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A 30,000-seat college football stadium is used 20 times for games, concerts, and graduation ceremonies. Each event averages four hours, and assume the stadium is full for each event. The stadium is available 365 days a year from 6 a.m. to midnight. Using Equation 7.1, find the stadium (seat) utilization. Can you think of one or two other assets that have such a low resource utilization? Utilization (U) = Resources Used/Resources Available
Carter Corporation applies manufacturing overhead on the basis of machine-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on
On December 31, 2015, Berclair Inc. had 600 million shares of common stock and 16 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. Compu
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Pacific Company bought 35% of the outstanding common stock of Atlantic Inc. on January 1, 2014, for $400,000. Atlantic reported net income of $200,000 for 2014 and declared an
The chief executive officer (CEO) of Rigid Plastics Corporation remarked to a colleague, “I don’t understand why other companies waste so much time in the budgeting process. I
You own an automobile parts company and have been approached by a leading car manufacturer to supply parts to the company. How would you determine that the car manufacturer
Miguel decides to set up a retirement fund by depositing 15,000 at the end pf each year for 40 years. How much will he have then, if the interest rate is 8% compounded semi an
What amount of interest expense related to the bonds will LHD report in its income statement for the year ending December 31, 2012?
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