× Didn't find what you were looking for? Ask a question
Top Posters
Since Sunday
w
3
w
3
e
3
3
r
3
b
2
M
2
V
2
f
2
c
2
c
2
K
2
Home Q & A Board Other Fields Homework Help Business Management
New Topic  
lexisastudent lexisastudent
wrote...
Go to Answer
Posts: 619
Rep: 0 0
6 years ago
George P. Burdell owns a hot tub store that is experiencing significant growth. Burdell is trying to decide whether to expand the store's capacity, which currently is at 750,000 in sales per quarter.
 
  He is thinking about expanding to the 850,000 level. The before-tax profit from additional sales is 20 percent. Sales are seasonal, with peaks in the spring and summer quarters. Forecasts of capacity requirements, expressed in (000 ) sales per quarter, for next year (year 2 ) are:
 
  Quarter (000 )
  1 720
  2 800
  3 890
  4 690
 
  Demand in year 3 and beyond is expected to exceed 850,000 per quarter. Burdell is considering expansion at the end of the fourth quarter of this year (year 1). How much would before-tax profits in year 2 increase because of this expansion?
  A) less than 28,000
  B) more than 28,000 but less than 32,000
  C) more than 32,000 but less than 36,000
  D) more than 36,000
Read 62 times
1 Reply
Replies
Answer verified by a subject expert
schoolboy4367schoolboy4367
wrote...
#1
Top Poster
Posts: 1181
Rep: 10 0
6 years ago
Sign in or Sign up in seconds to unlock everything for free
1

Related Topics

lexisastudent Author
wrote...

6 years ago
This helped my grade so much Perfect
spaghetti
wrote...

Yesterday
Thanks for your help!!
jbarnett14
wrote...

2 hours ago
Helped a lot
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  453 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Live Chat
Related Images
  
 1226
  
 2772
  
 792
Your Opinion
Which is the best fuel for late night cramming?
Votes: 233
Previous poll results: What percentage of nature vs. nurture dictates human intelligence?