As a Community Service, the Local YWCA Runs Saturday Afternoon

question 170

Multiple Choice

As a community service, the local YWCA runs Saturday afternoon movies for children, charging 50 cents admission per child. The fixed costs are $100 per weekend for film rental and cleanup. The YWCA also sells candy, drinks, and popcorn with a variable cost ratio (variable costs divided by selling price) of 0.50. The average child buys $2.00 of junk food. What is the breakeven number of children?

• A)47 children
• B)52.3 children
• C)66.7 children
• D)73.5 children

Understand the basics of mortgages including principal, interest rate, amortization period, and payment frequency.

Calculate mortgage payments given different interest rates and amortization periods.

Calculate the effects of changing interest rates on renewal of mortgages.

Understand and calculate the impact of making additional payments or lump sum payments on the amortization period of a mortgage.

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Definitions:

Scrap Value

The estimated value that an asset will realize upon its sale at the end of its useful life, typically as materials for recycling or repurposing.

Stop Manufacturing

The act of halting the production or assembly of products in a manufacturing process.

Specific Performance

A legal remedy requiring a party to perform their specific duties under a contract, rather than paying damages.

Implicit Guarantee

An unstated or implied promise or assurance, often believed to exist due to past practices or general market perceptions.