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2 years ago

Kristen Lu purchased a used automobile for 8,000 at the beginning of last year and incurred the following operating costs:

Business

1 answer:

TEA [102]2 years ago

8 0

Depreciation = 8000/5 = 1600

Insurance = 1200

Garage Rent = 360

Automobile tax and license = 40

Variable operating cost = 0.14 per mile

Variable operating costs include gasoline, oil, tires, maintenance, and repairs. Kristen estimates that, at its current usage rate, the car will have zero resale value in five years, so the annual straight-line depreciation is $1,600. Cars are garaged for a monthly fee.

Requirement:

Kristen drove the car 10,000 miles last year. Compute the average cost per mile of owning and operating the car.

(Round your answer to 2 decimal places. Omit the "$" sign in your response.)

Fixed cost per mile (3,200 ÷ 10,000 miles) = 0.32

Variable operating cost per mile = 0.14

Average cost per mile = 0.46 (0.32 + 0.14)

Learn more about average cost:

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Anon25 [30]

Answer:

Profit $3,567

I would exercise my option by buying the shares before the expiration .

Explanation:

Calculation of how much profit would you make trading $1,000,000

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Second step is to divide the spot rate option by the strike price

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Profit=$3,567

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Based on the above calculation I would exercise my option by buying the shares before the expiration .

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2 years ago

Suppose the price of Twinkies is reduced from $1.45 to $1.25 and, as a result, the quantity of Twinkies demanded increases from

valentina_108 [34]

Answer:

d. .64.

Explanation:

Price elasticity of demand measure the responsiveness of demand against change in the price of given product. It measures the ratio of change in demand to change in price.

Change in demand = ( 2200 - 2000 ) / [ (2200+2000)/2 ] = 200 / 2100 = 0.0952

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2 years ago

The goal of an mnc is to maximize the ________.

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The increase in value of a subsidiary will only increase the benefit of the stakeholders of that subsidiary while earnings is considered as a temporary benefit in corporate world.

Hence from the above we can conclude that the correct option is C.

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