Answer:
The total sales = $400,000
Explanation:
Given the information below,
Total sales = $10,000
Variable expenses = $300,000
Contribution margin = 25%
Net operating income = $10,000
Total sales
[300,000 / (1-25%)].
$400,000
Less: Variable expenses
($300,000)
Contribution margin
($100,000)
Less: Fixed cost
[400,000 - 300,000 - 10,000]
($90,000)
Net Operating income
$10,000
The correct answer is ; The total sales = $400,000
A college student borrows $10,000 today at 10% interest compounded annually. Four years later, the student makes the first payment of $3000. Approximately how much money will the student still owe on the loan after the first payment
Answer:
$11,700
Explanation:
Calculation for how much money will the student still owe on the loan after the first payment
Using this formula
A=P(1+r/n)^nt
Where,
P =represent the principal amount $10,000
r =represent annual nominal interest rate 10/100= 0.1
n =represent the number of times the interest is compounded per year 1
t= represent number of years 4
Let plug in the formula
A=$10,000(1+0.1/1)^(1)(4)
A=$10,000(1.1)^4
A=$14,641
Since the student makes the first payment of the amount of $3,000 the amount of money that the student still owe on the loan after the first payment will be :
Loan Amount =$14,641-$3,000
Loan Amount =$11,641
Approximately $11,700
Therefore how much money will the student still owe on the loan after the first payment will be $11,700
The student still owes is $11,641.
The first step is to determine the future value of the loan:
FV = P (1 + r)^n
FV = Future value P = Present value R = interest rate N = number of years$10,000(1.1)^4 = $14,641
The amount the student still owes = future value of the loan - amount paid
$14,641 - $3000 = $11,641.
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Will Co. is expected to pay a dividend of $2 per share at the end of year 1(Div1), and the dividends are expected to grow at a constant rate of 4 percent forever. If the current price of the stock is $20 per share, calculate the expected return or the cost of equity capital for the firm.
Answer:
Expected return or the cost of equity capital for the firm = 14%
Explanation:
V(0) = D1 / r - g
v = 20, D1 = 2, r = ?, g = 0.04
20 = 2 / (r - 0.04)
20r - 0.8 = 2
20r = 2 + 0.8
20r = 2.8
r = 2.8/20
r = 0.14
r = 14%
Note: Application of constant growth dividend discount model was required to solve the question
what is an example of what a business would write a check for
Answer:
To pay in taxes, to purchase goods to make things if the business is a factory etc. hope this helps
Explanation:
Which of the following is an example of internally caused behavior? An employee was laid off because the company was attempting to cut costs by laying off employees. An employee was late for a team meeting because of a heavy downpour. An employee could not come to work because he met with an accident. An employee could not attend an interview because of a delayed flight. An employee was fired from work because he violated a company policy.
Answer:
An employee was fired from work because he violated company policy
Explanation:
One of the factor that determine the behavior of people is the way the event arround them is interpreted. Those that can control things arround them usually take responsibility for what they do compare to set of people believing that situation arround them is beyond their control, which is explained in" attribution theory" by Fritz Heider. Internally caused behavior can be regarded as challenging behavioras a result of internal stimuli such as traits, pain and anxiety.
Out of the options given in the question only "An employee was fired from work because he violated a company policy" is an example of internally caused behavior, since the violation is on the path of the employee which is as a result of internal behavior known to him.
The law of diminishing marginal utility says that:_____.
a. as a person consumes more and more of a certain good, the addition to total satisfaction decreases.
b. as a person's income increases, the satisfaction associated with each dollar spent decreases. as
c. a person consumes more and more of a certain good, the additional satisfaction increases.
d. as a person's income increases, the satisfaction associated with each additional dollar earned increases.
Assume that this law holds for Quincy with ice cream and pretzels. Quincy decides to eat less ice cream and more pretzels. As a result:_______.
A. Quincy's marginal utility of ice cream decreases, and his marginal utility of pretzels increases.
B. Quincy's marginal utility of both ice cream and pretzels decreases.
C. Quincy's marginal utility of both ice cream and pretzels increases.
D. Quincy's marginal utility of ice cream increases, and his marginal utility of pretzels decreases.
Answer: 1. a. As a person consumes more and more of a certain good, the addition to total satisfaction decrease.
2. D.Quincy's marginal utility for ice cream increases and his marginal utility for pretzels decreases.
Explanation:
Diminishing marginal utility implies that one gains extra satisfaction from the consumption of an extra unit of a particular good but that as one continue to consume, there'll be dissatisfaction because the extra unit consumed will not bring more satisfaction like the former ones.
For example, if one is thirsty and buys water, an extra unit will at first give satisfaction but more extra water will not be as satisfying like the first one.
If Quincy eats less ice cream and more pritzels, the marginal utility for ice cream will increase as she'll get more satisfaction because she only consumed less while for pritzels, the satisfaction will reduce if she takes an extra.
WidgCo is a company that produces and sells widgets. Let p denote the price per widget (measured in dollars), and let x be the monthly demand for widgets. WidgCo's marketing department determines that p and x are related by the following demand equation: p(x) = 334 − 2x. The cost of producing x widgets is given by C(x) = 1,687 + 18x. Construct the revenue function, R(x). Find the production level that will result in the maximum revenue. Find the maximum monthly revenue. Enter your answer to part c in the box below. Round your answer to the nearest cent.
Answer:
The answer is below
Explanation:
a) The revenue is the product of the price and the number of items. Given that p(x) = 334 − 2x and the number of widget is x, hence the revenue R(x) is given as:
R(x) = x × p(x) = x × 334 − 2x = 334x - 2x²
b) The maximum revenue is gotten by setting the first derivative of the revenue to 0, hence:
R'(x) = 334 - 4x
334 - 4x = 0
4x = 334
x = 334/4
x = 83.5
x ≈ 84
84 widgets are needed for maximum revenue
c) R(4) = 334(84) - 2(84²) = 13944
The maximum revenue is $13944
MC Qu. 22 Selected information from the accounting... Selected information from the accounting records of Dunn's Auto Dealers is as follows: Cost of furniture purchased for cash $ 8,000 Proceeds from bank loan 100,000 Repayment of bank loan (includes interest of $4,000) 44,000 Proceeds from sale of equipment 5,000 Cash collected from customers 320,000 Purchase of stock of another corporation as an investment 20,000 Common stock issued for cash 200,000 In its statement of cash flows, Dunn's should report net cash outflows from investing activities of:
Answer:
($23,000)
Explanation:
Cash flow from Investing Activities
Purchase of furniture ($ 8,000)
Proceeds from sale of Equipment $5,000
Investment in other companies ($20,000)
Net Cash used by Investing Activities ($23,000)
Notes :
Cash flow from Investing activities section of the cash flows statement shows the cash movement in acquisition of assets and sale of assets.
EXCESS CAPACITY Williamson Industries has $7 billion in sales and $1.944 billion in fixed assets. Currently, the company’s fixed assets are operating at 90% of capacity. What level of sales could Williamson Industries have obtained if it had been operating at full capacity? What is Williamson’s target fixed assets/sales ratio? If Williamson’s sales increase 15%, how large of an increase in fixed assets will the company need to meet its target fixed assets/sales ratio?
Answer:
a. Calculation of level of sales
Level of sales = Sales / Operating capacity
= 7,000,000,000/90%
= $7,777,777,777.78
b. Calculation of Target fixed Assets/Sales ratio
Fixed assets sales ratio = Fixed assets / Level of sales
= 1,944,000,000/7,777,777,777.78
= 0.249942857
= 0.25
c. Calculation of Increase in Fixed assets
Increase in fixed assets = Fixed assets sales ratio * (Increase in sales - Level of sales)
= 0.249942857 * (7,000,000,000*1+15% - 7,777,777,777.78)
= 0.249942857 * (8,050,000,000 - 7,777,777,777.78)
= 0.249942857 * 272,222,222.222
= $68,040,000.
Relevant Range and Fixedand Variable Costs
Vogel Inc. manufactures memory chips for electronic toys within a relevant range of 76,800 to 128,000 memory chips per year. Within this range, the following partially completed manufacturing cost schedule has been prepared:
Components produced 76,800 96,000 128,000
Total costs:
Total variable costs . . . . . . . . .$27,648
Total fixed costs . . . . . . . . . . . .30,720
Total costs . . . . . . . . . . . . . . . . .$58,368
(Cost per unit: Variable cost per unit . . . . . . .
(Fixed cost per unit . . . . . . . . . .
Total cost per unit . . . . . . . . . .
Complete the cost schedule below.
When computing the cost per unit, round to two decimal places. Round all other values to the nearest dollar.
Answer:
Results are below.
Explanation:
Giving the following information:
Components produced 76,800 96,000 128,000
Total costs:
Total variable costs . . . . . . . . .$27,648
Total fixed costs . . . . . . . . . . . .30,720
Total costs . . . . . . . . . . . . . . . . .$58,368
To calculate the unitary variable costs and unitary fixed costs, we need to use the following formulas:
unitary variable cost= total variable cost/number of units
unitary fixed cost= total fixed cost/number of units
For 76,800:
unitary variable cost= 27,648/76,800= $0.36
unitary fixed cost= 30,720/76,800= $0.4
Total unitary cost= 58,368/76,800= $0.76
For 96,000:
unitary variable cost= 27,648/96,000= $0.29
unitary fixed cost= 30,720/96,000= $0.32
Total unitary cost= 58,368/96,000= $0.61
For 128,000:
unitary variable cost= 27,648/128,000= $0.22
unitary fixed cost= 30,720/128,000= $0.24
Total unitary cost= 58,368/128,000= $0.46
Assuming the Sporty line is discontinued, total fixed costs remain unchanged, and the space formerly used to produce the Sporty line is used to increase the production of Luxury watches by 250%, how will operating income be affected
Answer:
c. Increase of $192,500
Explanation:
Note: The full question is attached
Particulars Luxury Amount$
Sales $950,000
(380000*250/100)
Less: Variable cost $612,500
(245000*250/100 )
Total contribution $337,500
Less: Fixed expenses $80,000
Net Operating Income $257,500
Change in Operating Income = New Profit - Existing profit = $257,500 - $65,000 = $192,500
Hence, there is an increase of $192,500
Determine which of the following transactions may require adjustments. (Check all that apply.) Multiple select question. Supplies were purchased at the beginning of the year, but not all were used. a 24-month insurance policy was prepaid Equipment was purchased in the middle of the year. Six months of rent were paid in advance. An advance payment was received from a customer earlier in the month, but only partially earned by the end of the month. a one-month premium on an insurance policy was paid An employee was paid his weekly wages in full at the end of the week. Rent was paid for the month.
Answer:
Transactions that require end-of-period adjustments:
1. Supplies were purchased at the beginning of the year, but not all were used.
2. a 24-month insurance policy was prepaid
3. Six months of rent were paid in advance.
4. An advance payment was received from a customer earlier in the month, but only partially earned by the end of the month.
Note: No. 3 depends on when the rent was paid.
Explanation:
These transactions do not require any end-of-period adjustments:
1. Equipment was purchased in the middle of the year.
2. a one-month premium on an insurance policy was paid
3. An employee was paid his weekly wages in full at the end of the week.
4. Rent was paid for the month.
These four transactions require recording in the journals and not adjustments. They do not require end-of-the-period adjusting entries. It is only the depreciation expense for the equipment that will require adjustment for the half year.
Assume that you own 100 shares of common stock of a company, that you have been receiving cash dividends of $7 per share per year, and that the company has a 3-for-2 stock split. Required: How many shares of common stock will you own after the stock split
Answer: 150 shares
Explanation:
If the company has a 3 for 2 stock split, this means that for every 2 stocks you had, you will get 3 instead.
With 100 shares in the company, your new stock ownership amount after the split will be;
= 100 * 3/2
= 150 shares
When determining the value of a firm, which of the following statements is true? Investors are risk averse. Other things being equal, they prefer to pay more for stocks that are less risky and that have relatively more certain cash flows than other stocks. Investors love risk. Other things being equal, they prefer to pay more for stocks that are riskier and have uncertain cash flows. Investors are risk neutral. Other things being equal, they prefer to pay more for stocks that are less risky and have uncertain cash flows.
Answer:
Investors are risk averse. Other things being equal, they prefer to pay more for stocks that are less risky and that have relatively more certain cash flows than other stocks
Explanation:
A risk averse investor is an investor that would want lower returns from investments would lower risks
A risk neutral investor in neutral towards risks. They can invest in projects with high or low risks
A risk loving investor in an investor who prefers a person prefers risky return over guaranteed return
Whats y'alls fav basketball team?
Answer:
I think my favorite is the Los Angeles Lakers I haven't watch basketball in a while.
Explanation:
Mine is San Frisco 49ers, I love the colors and overall they are just a great team! hbu?
Given a 4 percent interest rate, compute the year 6 future value of deposits made in years 1, 2, 3, and 4 of $1,600, $1,800, $1,800, and $2,100. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
Answer:
$8,348.51
Explanation:
Computation of the year 6 future value of deposits
6 years Future value = $1,600 × (1 + 0.04)^5+ $1,800 × (1 + 0.04)^4+ $1,800 × (1 + 0.04)^3+ $2,100 × (1 + 0.04)^2
6 years Future value= $1,946.64 + $2,105.75 + $2,024.76 + $2,271.36
6 years Future value= $8,348.51
Therefore the year 6 future value of deposits will be $8,348.51
Two roadway designs are under consideration for access to a permanent suspension bridge. Design 1A will cost $1.7 million to build and $175,000 per year to maintain. Design 1B will cost $3.6 million to build and $40,000 per year to maintain. Both designs are assumed to be permanent. Use an AW-based rate of return equation to determine (a) the breakeven ROR and (b) which design is preferred at an MARR of 25% per year.
Answer and Explanation:
A. Given that Design 1A will cost $1.7 million to build and $175,000 per year to maintain
Given that Design 1B will cost $3.6 million to build and $40,000 per year to maintain
Both designs are assumed to be permanent
To find ROR using AW based rate of return equation, we find present value of each design and equate them:
Each design is permanent so
Present value of perpetuity:
Design 1A= 1700000+175000/r
Design 1B = 3600000+40000/r
=1700000+175000/r=3600000+40000/r
135000/r=1900000
Cross multiply
r=135000/1900000
r= 0.0710
r=7.10%
B Given that ROR=7.10% and MARR is 25%
MARR>ROR
Hence we reject both designs
According to the video, this job is a good springboard for which field?
A. Operations Research Analysis
B. Accounting
C. Marketing or Sales
D. Middle Management
Answer:
its d not b
Explanation:
Answer: (D) Middle Management
Explanation: right on edge 2020
What percentage of millennials have $100,000 or
or more invested for retirement?
Answer:
16% hit this milestone in 2018
Explanation:
Almost a quarter of the millennial generation (defined here as those aged 24 to 41) has $100,000 or more in savings, up from 16% in 2018.
They questioned millennials at the start of the poll if they are actively saving for retirement through an investment account such as a 401(k) or Individual Retirement Account (IRA).
The departure from one's post or occupation, or from one's active working life, is referred to as retirement. Semi-retirement can also be achieved by lowering work hours or workload.
Therefore, 16% of millennials have $100,000 or more invested for retirement.
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A company uses a process costing system. Its Weaving Department completed and transferred out 120,000 units during the current period. The ending inventory in the Weaving Department consists of 40,000 units (20% complete with respect to direct materials and 60% complete with respect to conversion costs). Determine the equivalent units of production for the Weaving Department for direct materials and conversion costs assuming the weighted average method. Multiple Choice 120,000 materials; 120,000 conversion. 120,000 materials; 160,000 conversion. 128,000 materials; 120,000 conversion. 128,000 materials; 144,000 conversion. 128,000 materials; 184,000 conversion.
Answer: 128,000 materials; 144,000 conversion
Explanation:
Materials
Equivalent Units of Production = Units transferred out + Percentage complete of ending inventory
= 120,000 + (20% * 40,000)
= 128,000 units
Conversion
Equivalent Units of Production = Units transferred out + Percentage complete of ending inventory
= 120,000 + (60% * 24,000)
= 144,000 units
Hatch Corporation's target capital structure is 40% debt, 50% common stock, and 10% preferred stock. Information regarding the company's cost of capital can be summarized as follows: The company's bonds have a nominal yield to maturity of 7%. The company's preferred stock sells for $40 a share and pays an annual dividend of $4 a share. The company's common stock sells for $25 a share and is expected to pay a dividend of $2 a share at the end of the year (i.e., D1 = $2.00). The dividend is expected to grow at a constant rate of 7% a year. The company has no retained earnings. The company's tax rate is 40%. What is the company's weighted average cost of capital (WACC)?
Answer:
WACC = 0.1018 or 10.18%
Explanation:
The WACC or Weighted average cost of capital is the cost of a firm's capital structure that can be made of one or all of the following components namely debt, preferred stock and common equity.
The formula to calculate is as follows,
WACC = wD * tD * (1- tax rate) + wP * rP + wE * rE
Where,
w represents the weight of each component in capital structurer represents the cost of each componentD, P and E represents debt, preferred stock and Common Equity respectively.Cost of bond = 7%
Cost of preferred stock = 4/40 = 10%
Cost of Common Equity :
25 = 2 / (r - 0.07)
25 * (r - 0.07) = 2
25r - 1.75 = 2
25r = 2 + 1.75
r = 3.75 / 25
r = 0.15 or 15%
WACC = 0.4 * 0.07 * (1 - 0.4) + 0.1 * 0.1 + 0.5 * 0.15
WACC = 0.1018 or 10.18%
Admission prices to Dollywood are $50 for a one-day ticket, $80 for a two-day ticket, and $100 for an annual pass. Based on these prices, the marginal cost of visiting Dollywood the second day is _____, the third day is _____, and the fourth day is _____.
a. $40; $33.33; $25
b. $30; $20; $0
c. $30; $10; $10
d. $80; $100; $100
Answer: b. $30; $20; $0
Explanation:
Admission prices to Dollywood are $50 for a one-day ticket, $80 for a two-day ticket, and $100 for an annual pass. Based on these prices, the marginal cost of visiting Dollywood the second day is $30, the third day is $20, and the fourth day is $0.
The marginal cost is the extra cost per day of going to Dollywood.
Second day
Marginal cost = Second day price - First day
= 80 - 50
= $30
Third day
Marginal cost = Third day price - Second day
= 100 - 80
= $20
Fourth Day
Marginal cost = Fourth day price - third day
= 100 - 100
= $0
Kent Manufacturing produces a product that sells for $64.00 and has variable costs of $35.00 per unit. Fixed costs are $348,000. Kent can buy a new production machine that will increase fixed costs by $20,500 per year, but will decrease variable costs by $4.50 per unit.
Required:
Compute the contribution margin per unit if the machine is purchased.
Answer:
The contribution margin per unit is $33.50
Explanation:
The contribution margin per unit in the case when the machine is purchased is shown below:
= Selling price per unit - variable cost per unit
= $64 - ($35 - $4.50)
= $64 - $30.50
= $33.50
hence, the contribution margin per unit is $33.50 and the same is to be considered
We simply applied the above formula
Find the future values of these ordinary annuities. Compounding occurs once a year. Do not round intermediate calculations. Round your answers to the nearest cent. $900 per year for 12 years at 10%. $ 19,245.85 $450 per year for 6 years at 5%. $ 3,060.86 $200 per year for 6 years at 0%. $ Rework parts a, b, and c assuming they are annuities due. Future value of $900 per year for 12 years at 10%: $ 21,170.43 Future value of $450 per year for 6 years at 5%: $ 3,213.90 Future value of $200 per year for 6 years at 0%: $
Answer:
a. Futuere Value = $19,245.86
b. Futuere Value = $3,060.86
c. Futuere Value = $0
d-1. Futuere Value = $21,170.44
d-2. Futuere Value = $3,213.90
d-3. Futuere Value = $0
Explanation:
Note: The data in the question are merged. They are therefore sorted before answering the question as follows:
Find the future values of these ordinary annuities. Compounding occurs once a year. Do not round intermediate calculations. Round your answers to the nearest cent.
a. $900 per year for 12 years at 10%. $ 19,245.85
b. $450 per year for 6 years at 5%. $ 3,060.86
c. $200 per year for 6 years at 0%. $
d. Rework parts a, b, and c assuming they are annuities due.
Future value of $900 per year for 12 years at 10%: $ 21,170.43
Future value of $450 per year for 6 years at 5%: $ 3,213.90
Future value of $200 per year for 6 years at 0%: $
Explanation of the answer is now provided as follows:
The formula for calculating the Future Value (FV) of an Ordinary Annuity given as follows:
FV = M * (((1 + r)^n - 1) / r) ................................. (1)
Where,
FV = Future value of the amount =?
M = Annuity payment
r = Annual interest rate
n = number of periods years
This formula is now applied as follows:
a. $900 per year for 12 years at 10%. $ 19,245.85
Therefore, we have:
FV = ?
M = $900
r = 10%, or 0.10
n = 12
Substituting the values into equation (1), we have:
FV = $900 * (((1 + 0.10)^12 - 1) / 0.10)
FV = $900 * 21.38428376721
FV = $19,245.855390489
Rounding the nearest cent, we have:
FV = 19,245.86
b. $450 per year for 6 years at 5%. $ 3,060.86
Therefore, we have:
FV = ?
M = $450
r = 5%, or 0.05
n = 6
Substituting the values into equation (1), we have:
FV = $450 * (((1 + 0.05)^6 - 1) / 0.05)
FV = $450 * 6.8019128125
FV = $3,060.860765625
Rounding the nearest cent, we have:
FV = $3,060.86
c. $200 per year for 6 years at 0%. $
Therefore, we have:
FV = ?
M = $200
r = 0%, or 0
n = 6
Substituting the values into equation (1), we have:
FV = $200 * (((1 + 0)^6 - 1) / 0)
FV = $200 * ((1^6 - 1) / 0)
FV = $200 * ((1 - 1) / 0)
FV = $200 * (0 / 0)
FV = $200 * 0
FV = $0
d. Rework parts a, b, and c assuming they are annuities due.
The formula for calculating the Future Value (FV) of an Annuity Due is given as follows:
FV = M * (((1 + r)^n - 1) / r) * (1 + r) ................................. (2)
Where,
FV = Future value
M = Annuity payment
r = Annual interest rate
n = number of periods years
This formula is now applied as follows:
d-1. Future value of $900 per year for 12 years at 10%: $ 21,170.43
Therefore, we have:
FV = ?
M = $900
r = 10%, or 0.10
n = 12
Substituting the values into equation (2), we have:
FV = $900 * (((1 + 0.10)^12 - 1) / 0.10) * (1 + 0.10)
FV = $900 * 21.38428376721 * 1.10
FV = $2,1170.4409295379
Rounding the nearest cent, we have:
FV = $2,1170.44
d-2. Future value of $450 per year for 6 years at 5%: $ 3,213.90
Therefore, we have:
FV = ?
M = $450
r = 5%, or 0.05
n = 6
Substituting the values into equation (2), we have:
FV = $450 * (((1 + 0.05)^6 - 1) / 0.05) * (1 + 0.05)
FV = $450 * 6.8019128125 * 1.05
FV = $3,213.90380390625
Rounding the nearest cent, we have:
FV = $3,213.90
d-3. Future value of $200 per year for 6 years at 0%: $
Therefore, we have:
FV = ?
M = $200
r = 0%, or 0
n = 6
Substituting the values into equation (2), we have:
FV = $200 * (((1 + 0)^6 - 1) / 0) * (1 + 0)
FV = $200 * ((1^6 - 1) / 0) * 1
FV = $200 * ((1 - 1) / 0) * 1
FV = $200 * (0 / 0) * 1
FV = $200 * 0 * 1
FV = $0
At the beginning of the year, Bryers Incorporated reports inventory of $6,100. During the year, the company purchases additional inventory for $21,100. At the end of the year, the cost of inventory remaining is $8,100. Calculate cost of goods sold for the year.
Answer:
$19,100
Explanation:
The cost of goods sold refers to the actual cost, expended in the manufacturing of goods or products that is produced and then sold in a given period. It comprises all direct costs expended in the manufacturing of goods.
With regards to the above, the cost of goods sold for the year is computed as;
= $6,100 beginning inventory + $21,100 purchases for the period - $8,100 closing inventory
= $19,100
Therefore, the cost of goods sold for the year is $19,100
Marigold Corp. wants to sell a sufficient quantity of products to earn a profit of $100000. If the unit sales price is $13, unit variable cost is $8, and total fixed costs are $200000, how many units must be sold to earn income of $100000?
Answer:
Units to be sold= 60,000
Explanation:
Giving the following information:
The unit sales price is $13, the unit variable cost is $8, and the total fixed costs are $200,000.
To calculate the number of units to be sold, we need to use the break-even point in units formula:
Break-even point in units= (fixed costs + desired profit) / contribution margin per unit
Break-even point in units= (200,000 + 100,000) / (13 - 8)
Break-even point in units= 60,000
Units to be sold= 60,000
managers are the managers concerned with implementing the plans policies of top managers and supervising low level managers
Answer:
Their responsibilities are influenced by top managers; however, their responsibilities are ... In order to do this, they must implement subunit strategies for achieving those objectives. ... They are concerned with intermediate range plan ... Managers at this level train and supervise the performance of nonmanagerial employees
Answer:
Middle Managers
Explanation:
Farrokh and Scheherezade Sharabianlou agreed to buy a building owned by Berenstein Associates for $2 million. They deposited $115,000 toward the purchase. Before the deal closed, an environmental assessment of the property indicated the presence of chemicals used in dry cleaning. This substantially reduced the property’s value. Do the Sharabianlous have a good argument for the return of their deposit and rescission of the contract? Explain.
Answer:
This was an actual court case that ended in the Court of Appeals of the First District of California. Initially a lower court had ruled against the Sharabianlous and set extremely high compensations for damages to Berenstein. I do not understand why the court did it since it was proven that the land was contaminated and couldn't be sold under unless cleaned.
Finally, the court of appeals ruled in favor of the Sharabianlous, not because they thought they were right, but due to errors in the original trial.
The big issue in this case was that the contract signed by the Sharabianlous wasn't clear enough about what would happen if the land was not suitable for sale and they also failed to seek a lawyer when the contamination issues became obvious. If you read the case, even the real estate broker acted against the Sharabianlous when the property was appraised since he didn't tell the appraiser about the contamination issues.
The final ruling was made in 2010, 8 years after the parties engaged in the transaction, which gives us an idea of how complicated things can get when legal procedures are not followed, even though the outcome should be obvious.
If I was part of a jury and the case was about property that couldn't be sold due to contamination, I would probably vote in favor of the buyer, not the seller. It's common sense, but sometimes it you do not follow the appropriate legal path, common sense makes no sense at all.
At what percentage of credit card usage, does it start affecting your score in a negative way?
Answer:
3%
Explanation:
ratio of 80 or 90 percent or more highly negative impact on your credit score.
5. A software startup, Lutoj, Inc., is developing a new smart home software product. Lutoj believes revenue must reach $5 million in Year 3 for the product to be viable. Lutoj’s operating margin (EBIT/Sales) is 20%, the tax rate is 30, and asset turnover is 5X. The founders have a total of $200,000 for initial equity funding. Assume Lutoj will pay no dividend. (15 points) a. With no other financing, will the $200,000 of founder investment be sufficient to achieve the Year 3 sales target? If not, what level of initial equity investment would be required?
Answer and Explanation:
A. Given asset turnover =5 (there's an error in the question of 5X)
Net Sales = 5 million dollars
Asset turnover is given by Net Sales/Total assets invested
Asset turnover = Net sales/total assets invested
We substitute values in the equation:
5= $5000000/total assets invested
= total assets invested=$5000000/5
Total assets invested =$1000000
Therefore to reach net sales of $5000000, there needs to be an initial investment of $1000000 not $200000
B. Given that initial investment required = $1000000
And investment available for equity now=$200000
Debt required for additional financing to reach initial investment requirement
=$1000000-$200000
=$800000 debt
Rent-A-Reck Incorporated finds that it can rent 60 cars if it charges $40 for a weekend. It estimates that for each $5 price increase it will rent two fewer cars. What price should it charge to maximize its revenue
Answer: $38
Explanation:
Based on the scenario in the question, the equation for the total revenue will be:
= (60 - 2n)(40 + 5n).
It should be noted that the coefficient of increment is represented by n.
Check the attachment for further details.
We are required to find the price should it charge to maximize its revenue
The price it should charge to maximize its revenue is $38
Equation:
(60 - 2n)(40 + 5n)
open parenthesis
2400 + 300n - 80n - 10n²
2400 + 220n - 10n²
differentiate with respect to n
dR/dn = 220 - 20n
220 - 20n = 0
220 = 20n
divide both sides by n
n = 220/20
n = 11
Revenue maximization price = (60 - 2n)
= 60 - 2(11)
= 60 - 22
= $38
Car rent price = (40 + 5n)
= 40 + 5(11)
= 40 + 55
= $95
Therefore, the price it should charge to maximize its revenue is $38
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