Answer:
Budgeted operating expense for Credit Card transactions:
Credit Card Transaction fee $0.20 x 30,000 + 1.5% of $9,000,000 = $141,000
Explanation:
The first element of the budgeted expense is $0.20 of 30,000 transactions. This gives a value of $6,000.
The second element is 1.5% of the transaction value. This gives a value of $135,000.
When added up, we have a total of $141,000 as the total expense to be budgeted for credit card transactions.
The essence of having such separate charges is to capture the volume of transactions as well as the value. Transaction-based services are usually priced to include costs based on volume and value.
It is generally considered to be fair for the two parties involved. Sometimes, the volume may be less but the value more and vice versa. In order to compensate the service provider fairly, such arrangements are made to integrate volume and value in the pricing scheme.
<span>The contractual standard for product safety and liability that says the buyer chose to make the purchases and knows the each purchase involves informed consent is often referred to as the standard of caveat emptor. This is simply a warning that lets the buyer know and understand the product is sold as is and is subject to all defects. Basically, another way of saying buyer be ware.</span>
Answer:
The answer is: A) a violation of the Stored Communications Act.
Explanation:
The Stored Communications Act (1986) regulates voluntary and compelled disclosure of "stored wire and electronic communications and transactional records". In order to force third party internet service providers (ISPs) to disclose the contents of email or other files stored, only a subpoena and prior notice is needed.
In this case, Bodegas & Bistros didn't present a subpoena to the network, so they shouldn't have been allowed the information.
Answer:
Manufacturing is a secondary process of transforming raw materials into finished products.The manufactured goods are more useful and valuable than the raw materials.
The location of manufacturing industries depends on a number of physical and socio economic factors.
1.NEARNESS TO THE SOURCE OF RAW MATERIAL: Large quantities of raw materials are needed for industries. Therefore industries are located near the source of raw materials. It saves the cost of transportation.Steel centres are developed where coal and iron are easily available. Jute mills in West Bengal and the cotton textile mills in Maharashtra are located due to the availability of raw materials.
2.POWER RESOURCES: Coal, oil and water power are the main sources of power. Most of the industries are located near coal fields. Aluminium industries and paper industries are located near hydroelectric stations.
3.MEANS OF TRANSPORTATION: Modern Industries need cheap, developed and quick means of transportation. Cheap means of transportation are required for the movement of workers, raw materials and machinery to the factories.
4.CLIMATE: Stimulating climate increase the efficiency of the labourers. The cotton textile industry required humid climate. The film industry needs good weather with clear blue skies. Similarly the aircraft industry also needs clear weather.
5.SKILLED LABOUR: cheap and Skilled labour is essential for the location of industries. Glass industry at Firozabad and the sports goods industry in Jalandhar are located due to the availability of Skilled labour.
Answer: a. $30,000
b. $21,600; $14,000
c. $5,600
d. 40%
Explanation;
a. When the company is assumed to have no debt and pays its net income entirely as dividends then the Value of the firm's equity is;
= <em>Earnings after taxes / Cost of Equity</em>
Risk free interest rate will be used. The Earnings after taxes are used because taxes have to be taken out to find out the amount due to shareholders for the year.
= 2,500 ( 1 - 40%) / 5%
= 1,500/ 5%
= $30,000
b. If interest is paid then the Value of equity will be;
= <em>Earnings after interest and taxes / Cost of Equity</em>
= (2,500 - interest * ( 1 - tax) ) / Cost of Equity
= (2,500 - 700 * ( 1 - 40%) ) / 5%
= $21,600
Value of debt = Interest/cost of debt
=700/5%
= $14,000
c. The total value of the firm without Leverage has been shown to be $30,000.
The total value of the firm with leverage would be;
= <em>Value of Equity assuming debt + Value of Debt</em>
= 21,600 + 14,00
= $35,600
Difference;
= 35,600 - 30,000
=$5,600
d. Value of debt is $14,000
= (5,600/14,000) * 100%
= 40%
