Answer:
$747,000
Explanation:
Calculation to determine What amount of inventory should Arendelle report on its balance sheet as of December 31
December 31 Inventory $667,000
Add Second shipment f.o.b. shipping point of $80,000
December 31 Inventory $747,000
($667,000+$80,000)
Therefore What amount of inventory should Arendelle report on its balance sheet as of December 31 is $747,000
An asset used in a four-year project falls in the five-year MACRS class for tax purposes. The asset has an acquisition cost of $6,020,000 and will be sold for $1,220,000 at the end of the project. If the tax rate is 35 percent, what is the aftertax salvage value of the asset
Answer:
The after-tax salvage value of the asset is:
= $793,000.
Explanation:
a) Data and Calculations:
Asset acquisition cost = $6,020,000
Salvage value = $1,220,000
MACRS Depreciation Expenses = $4,800,000
Project useful life or project duration = 5 years
Tax rate = 35%
Tax expense = $427,000
After-tax salvage value = $793,000 ($1,220,000 - $427,000)
b) The salvage value of the project asset is the recovery or residual value after depreciation expenses have been recognized over the project asset's useful life. Depreciation is an accounting method of spreading the cost of an asset over its useful life. There are many depreciation methods, including straight-line, double-declining, unit-of-production, sum-of-the-years digits, etc.
If a French bank opens a new branch office in California, where does this transaction appear in the balance of payments accounts
Answer:
Either U.S or france
Vaughn, Inc. had net sales in 2020 of $1,410,300. At December 31, 2020, before adjusting entries, the balances in selected accounts were Accounts Receivable $348,200 debit, and Allowance for Doubtful Accounts $2,940 credit. If Vaughn estimates that 10% of its receivables will prove to be uncollectible. Prepare the December 31, 2020, journal entry to record bad debt expense.
Answer:
Date Account Title Debit Credit
Dec. 31 2020 Bad Debt expense $31,880
Allowance for Doubtful Accounts $31,880
Explanation:
Bad debt expense for the period:
= (Estimate of uncollectible receivables) - Allowance for Doubtful accounts credit balance
= (348,200 * 10%) - 2,940
= $31,880
5 years ago, Barton Industries issued 25-year noncallable, semiannual bonds with a $1,000 face value and a 9% coupon, semiannual payment ($45 payment every 6 months). The bonds currently sell for $896.87. If the firm's marginal tax rate is 25%, what is the firm's after-tax cost of debt? Do not round intermediate calculations. Round your answer to two decimal places.
Answer: 7.67%
Explanation:
To solve this, the financial calculator will be needed
Present value = -896.87
Future Value = 1,000
N = [(25 - 5years) × 2 = 40
PMT = $45
Given the above information, we will press the financial calculator as we'll press CPT after which we then press I/Y and we'll get 5.11%
Then, the the firm's after-tax cost of debt will be:
= (5.11% x 2 )(1 - 0.25)
= (0.0511 × 2) (0.75)
= 0.07665
= 7.665%
= 7.67%
Alpha Company owns 80 percent of the voting stock of Beta Company. Alpha and Beta reported the following account information from their year-end separate financial records: Alpha Beta Inventory $95,000 $88,000 Sales Revenue 800,000 300,000 Cost of Goods Sold 600,000 180,000 During the current year, Alpha sold inventory to Beta for $100,000. As of year end, Beta had resold only 60 percent of these intra-entity purchases. Alpha sells inventory to Beta at the same markup it uses for all of its customers. What is the total for consolidated inventory
Answer:
$173,000
Explanation:
The computation of the total consolidated inventory is shown below:
But before that following calculations need to be done
Percentage profits that Alpha charge to other customers is
= ($800,000 - $600,000) ÷ $800,000
= 25% of sales
Stock held at year end is
= $100,000 × 40%
= $40,000
Profit involved in stock is
= $40,000 × 25%
= $10,000
Now the stock of beta is
= $88,000 - $10,000
= $78,000
And finally, the Total for consolidated inventory is
= $95,000 + $78,000
= $173,000
Paul, a calendar year single taxpayer, has the following information for 2019 (not 2020): AGI State income taxes State sales tax Real estate taxes Gambling losses (gambling gains were $ 12,000) $ 175,000 13,500 3,000 18,900 6,800 Paul's allowable itemized deductions for 2019 are: a. $ 10,000 b. $ 16,800 C. $ 39,200 d. $ 42,200 e. None of these.
Answer:
C. $ 39,200
Explanation:
Calculation to determine what Paul's allowable itemized deductions for 2019 are
Using this formula
Itemized deduction = State income taxes + Real state taxes + Gambling losses
Let plug in the formula
Itemized deduction = $13,500 + $18,900+ $6,800
Itemized deduction =$39,200
Therefore Paul's allowable itemized deductions for 2019 are $39,200
A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $341,900 and direct labor hours would be 48,900. Actual manufacturing overhead costs incurred were $307,800, and actual direct labor hours were 52,800. What is the predetermined overhead rate per direct labor hour
Answer:
See below
Explanation:
With regards to the above, the predetermined overhead rate is computed below.
Predetermined overhead rate = Estimated factory overhead cost / Estimated direct labor hours
Given that;
Estimated factory overhead cost = $341,900
Estimated direct labor hours = 48,900
Therefore,
Predetermined overhead rate per direct labor hour
= $341,000 / 48,900
= $6.97 per direct labor hour
From the choices presented, choose the appropriate term for completing each of the following sentences: a. Advertising expenses are usually viewed as costs. b. An example of factory overhead is . c. Direct materials costs and direct labor costs are called costs. d. Implementing automatic factory robotics equipment normally the factory overhead component of product costs. e. Materials that are an integral part of the manufactured product are classified as . f. An oil refinery would normally use a cost accounting system. g. The balance sheet of a manufacturer would include an account for . h. The wages of an assembly worker are normally considered a cost.
Answer:
a. Advertising expenses are usually viewed as period costs.
b. An example of factory overhead is plant depreciation.
c. Direct materials costs and direct labor costs are called conversion costs.
d. Implementing automatic factory robotics equipment normally decreases the factory overhead component of product costs.
e. Materials that are an integral part of the manufactured product are classified as direct materials.
f. An oil refinery would normally use a process cost accounting system.
g. The balance sheet of a manufacturer would include an account for work in process inventory.
h. The wages of an assembly worker are normally considered a product cost.
Graymont Industries purchases Solvate, a chemical compound used in several of its products, from ChemMaster. ChemMaster has just increased the list price of Solvate to $6.10 per gallon. However, because Graymont purchases a high volume of Solvate, ChemMaster grants the company a 14 percent discount off the list price. Charges for shipping Solvate from ChemMaster to Graymont's factory are $130 for a shipment of twenty-five 49-gallon drums. Special storage requirements cost $0.59 per gallon.
Calculate Graymont's standard price for a gallon of Solvate. (Round answer to 2 decimal places, e.g. 3.51)
Answer:
the standard price for a gallon of Solvate is $5,942 per gallon
Explanation:
The computation of the standard price for a gallon of Solvate is shown below:
List Price $6.1 per gallon
Less: Discount at 14% 0.854 per gallon
Charges (130 ÷ (25 × 49) 0.106 per gallon
Special Storage $0.59 per gallon
Total Cost $5.942 per gallon
Hence, the standard price for a gallon of Solvate is $5,942 per gallon
difference between real flows and monetary flows
Journalize the following selected transactions for January. Journal entry explanations may be omitted.
Jan.
1 Received cash from the sale of common stock, $14,000.
2 Received cash for providing accounting services, $9,500.
3 Billed customers on account for providing services, $4,200.
4 Paid advertising expense, $700.
5 Received cash from customers on account, $2,500.
6 Paid dividends, $1,010.
7 Received telephone bill, $900.
8 Paid telephone bill, $900.
Answer and Explanation:
The journal entries are shown below:
On Jan 1
Cash $14,000
To Capital owner $14,000
(being cash received)
On Jan 2
Cash $9,500
To Account service revenue $9,500
(being cash received)
On Jan 3
Account receivable $4,200
To Service revenue $4,200
(being service provided on account)
On Jan 4
Advertising expense $700
To Cash $700
(being cash paid is recorded)
On Jan 5
Cash $2,500
To Account receivable $2,500
(being cash received)
On Jan 6
Owner drawings $1,010
To cash $1,010
(being cash paid is recorded)
On jan7
Telephone expense $900
To Account payable $900
(Being telephone bill received)
On Jan 8
Account payable $900
To cash
(being cash paid is recorded)
Suppose the own price elasticity of demand for good X is -3, its income elasticity is -2, its advertising elasticity is 4, and the cross-price elasticity of demand between it and good Y is -2. Determine how much the consumption of this good will change if: Instructions: Enter your responses as percentages. Include a minus (-) sign for all negative answers. a. The price of good X decreases by 7 percent. percent b. The price of good Y increases by 10 percent. percent c. Advertising decreases by 2 percent. percent d. Income increases by 4 percent. percent Prev
Answer:
a. 21 percent
b. -20 percent
c. -8 percent
d. -8 percent
Explanation:
Own price elasticity = -3
Income elasticity = -2
Advertising elasticity= 4
Cross price elasticity = -2
Formula for elasticity is given by,
[tex]Elasticity = \frac{Percentage change in Quantity}{Percentage change in factor}[/tex]
a. When price of good X decreases by 7 percent.
[tex]Elasticity = \frac{Percent change in quantity}{Percent change in own price}[/tex]
[tex]-3 = \frac{Percent change in quantity}{-7}[/tex]
[tex]Percent change in quantity = (-3) * (-7) = 21[/tex]
Thus, as price decreases by 7% quantity rises by 21%.
b. The price of good Y increases by 10 percent.
[tex]Corss- price elasticity = \frac{Percent change in quantity}{Percent change in Price of good Y} \\ -2 = \frac{Percent change in quantity }{10} \\Percent change in quantity = (-2) * (10) \\ = -20[/tex]
Thus, as price of good Y increases by 10 percent, demand for good X falls by 20 percent.
c. Advertising decreases by 2 percent.
[tex]Elasticity = \frac{Percent change in quantity}{Percent change in advertising} \\4 = \frac{Percent change in quantity }{-2} \\Percent change in quantity = (-2) * (4) \\ = -8[/tex]
Thus, a 2 percent decline in advertising will lead to a 8 percent fall in quantity of good X.
d. Income increases by 4 percent.
[tex]Income elasticity = \frac{Percent change in quantity }{Percent change in income}\\-2 = \frac{Percent change in quantity}{4} \\Percent change in quantity = (-2) * (4) \\ = -8\\[/tex]
Thus, when income increases by 4 percent, quantity decreases by 8 percent.
Five-A-Day, a company that produces and distributes organic vegetables for grocery stores, wants to market its vegetables in such a way that children will want to buy them. To accomplish this, the company creates an advertising campaign that features children dressed up in vegetable costumes attending a Halloween party and eating vegetables and dips as a snack. The company also packages cut up vegetables in grab-and-go containers in fun shapes and colorful designs to attract children's attention in the grocery store. Which marketing function does this scenario most closely described
Answer:
Selling
Explanation:
The marketing function that best describes this scenario is defined selling.
This is a strategy that the company uses when it wants to sell its product or service to a specific audience, in the case of the issue the audience is children. To this end, the company develops communication strategies that reach its target audience, such as developing advertising campaigns, using symbols and messages aligned with the tastes, desires and needs of its potential audience, to influence the choices, identification and process of purchase.
Compute the current ratio for the fiscal years ending January 31, 2016, and February 1, 2015. a-2. Compute the quick ratio for the fiscal years ending January 31, 2016, and February 1, 2015. a-3. Compute the amount of working capital for the fiscal years ending January 31, 2016, and February 1, 2015. a-4. Compute the percentage change in working capital from the prior year for the fiscal years ending January 31, 2016, and February 1, 2015. a-5. Compute the percentage change in cash and cash equivalents from the prior year for the fiscal years ending January 31, 2016, and February 1, 2015.
Answer:
a1: January 31, 2016 Current ratio 1.357
February 1, 2015 1.358
a2: Quick ratio January 31, 2016 0.414
February 1, 2015 0.375
a3: Working capital January 31, 2016 4,467
February 1, 2015 4,033.
a4: % change in working capital in 2016 10.76%
% change in working capital in 2015 -10.97%
a5: % change in cash and cash equivalents in 2016 28.61%
% change in cash and cash equivalents in 2015 -10.68%
Explanation:
a1. Computation for Current ratio using this formula
Current ratio = current assets/current liabilities.
Let plug in the formula
Ratio for fiscal year ending January 31, 2016 = 16993/12526
Ratio for fiscal year ending January 31, 2016 = = 1.357
Ratio for the fiscal year ending February 1, 2015 = 15302/11269
Ratio for the fiscal year ending February 1, 2015 = 1.358
a2. Computation for Quick ratio using this formula
Quick ratio = (Total current assets – inventory – prepaid expenses)/current liabilities.
Let plug in the formula
Ratio for fiscal year ending January 31, 2016 = (16993-11809)/12526
Ratio for fiscal year ending January 31, 2016= 0.414
Ratio for the fiscal year ending February 1, 2015 = (15302-11079)/11269
Ratio for the fiscal year ending February 1, 2015 = 0.375
a3. Computation for Working capital using this formula
Working capital = current assets – current liabilities
Let plug in the formula
Working capital for fiscal year ending January 31, 2016 = 16993-12526
Working capital for fiscal year ending January 31, 2016= 4,467.
Working capital for the fiscal year ending February 1, 2015 = 15302-11269
Working capital for the fiscal year ending February 1, 2015= 4,033.
a4. Computation for % change in working capital in 2016 from prior year
% change in working capital in 2016 from prior year = (4467-4033)/4033
% change in working capital in 2016 from prior year = 10.76%
% change in working capital in 2015 from prior year = (4033-4530)/4530
% change in working capital in 2015 from prior year = -10.97%
a5. Computation for % change in cash and cash equivalents in 2016 from prior year
% change in cash and cash equivalents in 2016 from prior year= (2216-1723)/1723
% change in cash and cash equivalents in 2016 from prior year= 28.61%
% change in cash and cash equivalents in 2015 from prior year = (1723-1929)/1929
% change in cash and cash equivalents in 2015 from prior year= -10.68%
Which best explains why banks consider interest on loans to be important?
Answer:
what are the options as answers?
Explanation:
Purchase Transactions and T AccountsUsing T accounts for Cash, Accounts Payable, Purchases, Purchases Returns and Allowances, Purchases Discounts, and Freight-In, enter the following purchase transactions. Identify each transaction with its corresponding letter. Post the transactions in the given order.
Purchase of merchandise with cash.
a. Merchandise is purchased for cash, $1,500.
b. Merchandise listed at $3,500, less a trade discount of 15%, is purchased for cash.
Answer:
Dr Cash a/c Cr
Purchases(a) $1,500
Purchases(b) $2,975
Dr Purchases a/c Cr
Cash(a) $1,500
Cash(b) $2,975
The above are the entries in the Cash and Purchases accounts.
The purchases are credited to the cash account and debited to the purchases.
b. Merchandise = 3,500 * ( 1 - 15% discount)
= $2,975
ABG
Question 14
Some fast-food restaurants sell only chicken, others sell only tacos and burritos, and still others sell only hamburgers. This is an example of the economic concept of
investment
А
B
business cycles
C
specialization
D
elasticity
Answer:
i think it is eaither b or c
Explanation:
Answer: C- specialization
Explanation:
A product sells for $210 per unit, and its variable costs per unit are $130. The fixed costs are $420,000. If the firm wants to earn $35,000 after tax income (assume a 30% tax rate), how many units must be sold
Answer:
5,688 units
Explanation:
Target sales = Target Profit + Fixed Costs ÷ Contribution per unit
where,
Contribution per unit = Sales - Variable Costs
= $210 - $130 = $80
therefore,
Target sales = ($35,000 + $420,000) ÷ $80 = 5,688 units
"Which of the following is true? Airfreight A. has lower transporting rates than trucks. B. efficiently delivers all types of goods. C. serves many more locations than trucks. D. is best for goods that are heavy relative to their sales value, such as iron ore. E. can help reduce inventory costs."
Answer:
E. can help reduce inventory costs.
Explanation:
Airfreight can be defined as the transportation or movement of goods from one location to another through the air and use of shipping containers.
A shipping container refers to a metal container made from steel and having the ability or strength to withstand all external factors during shipment or storage of materials. It is an essential part of transportation of goods or materials from one location to another, thereby boosting trade between countries.
The various types of shipping containers are, dry storage container, open-side storage container, ISO Reefer container, flat rack container, tunnel container, open top container, double doors container, thermal containers, intermodal freight container etc.
An inventory cost can be defined as all costs such as carrying cost, stock out (shortage) cost and ordering cost that are associated with the procurement, holding (storage) and management (handling) of inventory.
Generally, airfreight can help to reduce the total logistics cost or inventory cost since it's faster, large and devoid of various impediments when compared with other forms of transportation.
Hence, the true statement about airfreight is that it can help reduce inventory costs.
The four career pathways in Finance are
Banking and Related Services, Insurance Services, Retail Sales, and Business Financial Management.
Securities Law, Insurance Services, Financial and Investment Planning, and Business Financial Management.
Banking and Related Services, Retail Sales, Securities Law, and Business Financial Management.
Banking and Related Services, Insurance Services, Financial and Investment Planning, and Business Financial Management.
Answer:
Banking and Related Services, Insurance Services, Financial and Investment Planning, and Business Financial Management.
Answer: A.
Explanation:
All details related to an employee's earnings deductions and net pay throughout the year would be found in
Answer:
All details related to an employee's earnings deductions and net pay throughout the year would be found in the individual earnings record.
Explanation:
A random Quizlet had the answer when I searched the question up lol
Task 1: Answer the following questions in your notebook
1. What do you know about drug use?
2. What are the signs and symptoms of drug abuse?
he first activity.
Answer:
1. drug use can be harmful and also damages they way you think or do things for example if you have to much you feel like your going to pass out and do wierd actions.
2. some signs are you feel really tired and your eyes may want to close or you have to much and you feel like your fainting and if your around people you tend to act really badly and say where things
1. Drug use is the use of drugs for psychotropic rather than medical purposes.
2. Some symptoms include changes in appearance, dilated/constricted pupils, changes in hygiene, etc.
In a culture with strong business and family ties which of the following is NOT true:
a) Several members of a family may work in the same business.
b) Family members are usually promoted first in a family-owned business.
c) Protecting a family member is sometimes more important than a good business
d) decision.
Families and their businesses are very mobile.
Answer: Families and their businesses are very mobile.
Explanation:
In a culture with strong business and family ties, we should note that several members of the family may work in the same business.
Also, the family members are usually promoted first in a family-owned business. This is to ensure that the family members have a say in the affairs of the company. The family members are protected as well.
The option that isn't true is that families and their businesses are very mobile. This isn't true. The business is of importance and the family members aren't usually mobile.
Amber Company had $153,200 of net income in 2016 when the selling price per unit was $153, the variable costs per unit were $93, and the fixed costs were $574,100. Management expects per unit data and total fixed costs to remain the same in 2017. The president of Naylor Company is under pressure from stockholders to increase net income by $62,200 in 2017.
a) Compute the number of units sold in 2016.
b) Compute the number of units that would have to be sold in 2017 to reach the stockholders' desired profit level.
c) Assume that naylor company sells the same number of units in 2017 as it did in 2016. What would the selling price have to be in order to reacch the stockholders' desired profit level?
Answer and Explanation:
The computation is shown below:
1) Number of unit sold in 2016 is
As we know that
Total contribution margin is
= Fixed cost + Net income
= $153,200 + $574,100
= $727,300
And, the Contribution margin per unit is
= $153 - $93
= 60 per unit
So, the Number of unit sold in 2016 is
= $727,300 ÷ 60
= 12,122 Units
2) Number of unit sold is
= ($574,100 + $153,200 + $62,200) ÷ 60
= 13,158 Units
3) The selling price is
Break even = (Fixed cost + Desired profit) ÷ Contribution margin
12,122 = ($574,100 + $153,200 + $622,00) ÷ (X - $93)
12,122X - $1,127,346 = $789,500
12,122X = $1,916,846
X(Selling price) = $1,916,846 ÷ 12122
= $158 per unit
Farm products which are perishable and seasonal nature are supplied by
Answer:
★ Farm products which are perishable and seasonal nature are supplied by many producers.
Explanation:
Hope you have a great day :)
Oil Services Corp. reports the following EPS data in its 2017 annual report (in million except per share data). Net income $1,827 Earnings per share: Basic $1.56 Diluted $1.54 Weighted average shares outstanding: Basic 1,172 How many weighted average shares were dilutive in 2017
Answer:
15.2million dilutive shares
Explanation:
Calculation to determine How many weighted average shares were dilutive in 2017.
First step is to calculate the Basic EPS using this formula
Basic EPS= Net income -Basic
Let plug in the formula
Basic EPS= $1,827 /$1.56
Basic EPS=$1,171.2 million
Second step is to calculate the Diluted EPS
Diluted EPS =$1,827 million / $1.54
Diluted EPS = $1,186.4 million.
Now let calculate How many weighted average shares were dilutive in 2017
2017 Diluted weighted average=$1,186.4 million - $1,171.2 million.
2017 Diluted weighted average= 15.2million dilutive shares
Therefore How many weighted average shares were dilutive in 2017 is 15.2 million dilutive shares
Parking lot staff budget Adventure Park is a large theme park. Staffing for the theme park involves many different labor classifications, one of which is the parking lot staff. The parking lot staff collects parking fees, provides directions, and operates trams. The staff size is a function of the number of daily vehicles. Adventure Park has determined from historical experience that a staff member is needed for every 200 vehicles. Adventure Park estimates staff for both school days and nonschool days. Nonschool days are higher attendance days than school days. The number of expected vehicles for each day is as follows:
School Days Nonschool Days
Number of vehicles per day 3,000 8,000
Number of days per year 165 200
Parking fees are $10 per vehicle. Each parking lot employee is paid $110 per day.
Required:
a. Determine the annual parking lot staff budget for school days, nonschool days, and total.
b. Determine the parking revenue for school days, nonschool days, and total.
c. If depreciation expense and other expenses for running the parking lot were estimated to be $2 million per year, determine the parking lot's budgeted profit.
Answer: See explanation
Explanation:
a. Determine the annual parking lot staff budget for school days, nonschool days, and total.
For school days:
Number of staff required per day = 3000/20 = 15
Number of staff days per year = 15 × 165 = 2475
Annual parking lot staff budget = 2475 × $110 = $272250
For non school days:
Number of staff required per day = 8000/20 = 40
Number of staff days per year = 40 × 200 = 8000
Annual parking lot staff budget = 800 × $110 = $880,000
Total annual parking lot staff budget = $272250 + $880000 = $1152250
b. Determine the parking revenue for school days, nonschool days, and total.
For school days:
Total number of vehicles per year = 3000 × 165 = 495000
Parking revenue = 495000 × $10 = $4950000
For non school days:
Total number of vehicles per year = 8000 × 200 = 1600000
Parking revenue = 1600000 × $10 = $16000000
Total parking revenue = $4950000 + $16000000 = $20950000
c. If depreciation expense and other expenses for running the parking lot were estimated to be $2 million per year, determine the parking lot's budgeted profit.
Parking revenue = $20,950,000
Less: Parking lot staff payroll = $1152250
Less: Depreciation and other expenses = $2000000
Budgeted profit = $177977500
which activity is an economic activity?
a / watching tv
b / reading a book
c / playing video games
d / helping a friends decorate for a party
e / selling vegetables and fruits
Answer:
e
Explanation:
by buying goods you are stimulating the economy
intercontinentel baseball
Manufacturers 18m) hasan
outstanding bond that reatures
moyears. The bond, which
pays $25 intrest overy six
months 850 per share), is
Currently selling for 598.55
What is the bond's yeuld to
Answer:
12%
Explanation:
The computation of the yield to maturity is shown below:
Given that
Coupon (pmt) = $ 25
Present Value of Bond (PV) = $598.55
Face Value (FV) = $1000
No of Semi annual Period (nper) = 10 × 2 = 20
Now
The formula to calculate Bond's Half yearly yield to maturity is = rate(nper,pmt,-pv,fv)
= rate(20,25,-598.55,1000)
= 6%
Now Bond's Annual yield to maturity is
= 6% × 2
= 12%
The Occupational Safety and Health Administration (OSHA) has determined that the probability of a worker dying from exposure to a hazardous chemical used in the production of fertilizer is 0.008. The cost of imposing a regulation that would ban the chemical is $31 million. If the value of a human life is equal to $8 million, how many people must the policy affect in order for the benefits to exceed the costs
Answer: More than 484 person
Explanation:
The expected benefit for one person will be:
= probability of death × value of life
= 0.008 × 8 million = 0.064 million
The number of people that the policy must the affect in order for the benefits to exceed the costs will be:
= 31 million / 0.064 million
= 484.755
Therefore, the people should be more than 484 persons to exceed costs