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dangina [55]
1 year ago
5

The manager of a 150-unit apartment complex knows from experience that all units will be occupied if the rent is $1000 per month

. A market survey suggests that, on average, one additional unit will remain vacant for each $20 increase in rent. What rent should the manager charge to maximize revenue?.
Business
1 answer:
Roman55 [17]1 year ago
5 0

The rent that the manager should charge to maximize revenue will be $2,000.

In business, a rent is known as the cost incurred by a business to utilize a property or location for an office, retail space, factory, or storage space.

Initially, to find revenue by coming up we can calculate with an equation below:

Revenue = Price × Revenue

Where, price = 1000 + 20x

Quantity = 150 - x

R(x) = (1000+20x) (150-x)

R(x) = 150000 - 1000x + 3000x - 20x²

R(x) = - 20x² + 2000x + 150000

To maximize the revenue, we calculate the derivative and set it to zero:

R(x) = - 20x² + 2000x + 150000

R(x) = -40x + 2000

-40x + 2000 = 0

40x = 2000

x = 50

After we find the amount of X, thus we determine the rent that the manager should  charge to maximize revenue

Price=$1000+20x

Price=$1000+20(50)

Price=$1,000 + 1,000

Price = $2,000

Learn more about the rent at brainly.com/question/2254034

#SPJ4

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Answer:

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Factory supervision = 55% of $460,000 = $253,000

Indirect factory labor = 60% of $220,000     132,000

Total overhead assigned                             $385,000

Explanation:

a) Data and Calculations:

Factory supervision $ 460,000

Indirect factory labor $ 220,000

Distribution of Resource Consumption across Activity Cost Pools:

Activity Cost Pools

                                 Batch Set-Up     Expediting        Other     Total

Factory supervision      55%                    35%                10%      100%

Indirect factory labor    60%                   20%                20%      100%

b) Letze Corporation can use Activity-Based Costing as a system of cost accumulation and allocation based on activity cost pools so that overhead costs are assigned based on the level of activity which each cost pool generates.  It tries to tie costs to the activities that generate them.

3 0
3 years ago
What are the advantages and disadvantages of paying the new manager primarily cash pay?
Sindrei [870]
The advantages of primarily cash pay are the following:
1. It motivates the owner to expand the business.
2. The desirable increase in the level of services.

The disadvantages are the following:
1. There was a little incentive to the owner.
2. There was potential to lose sight to the customers.
7 0
3 years ago
Sally is planning to sell her company and she prefers to obtain immediate liquidity, and the value of consideration to be fixed.
ella [17]

Answer: A cash sale

                                           

Explanation: In simple words, liquidity refers to the ability of an organisation to bear its short term expenses. For that a company must have cash or some assets that can be readily converted into cash in case of need.

Hence Sally should sell her company in cash sale as it will result in inflow of cash which will create liquidity and also the consideration will be certain with short timely payments.

Other option such as IPO or  stock for stock might result in increase in value but certainly won't give her liquidity.  

6 0
3 years ago
Which of the following statements is CORRECT?
Kaylis [27]

A, B, D ,and E statements are correct

Explanation:

The main reason for the annual report is that it is utilized by investors when they expect future income and dividend from the company as well as the risks associated with those cash flows.

The statement of income shows the difference between the income and costs of a company–that is, its profits–over a given duration. Nevertheless, any income reported comes in cash and the expenditure reported always reflects cash expenditures. There will therefore be no substantial difference for the same period between a company's profits reported and its real cash flow.

Suppose all companies follow generally accepted standards of transparency. Two years ago, both companies started operations with similar fixed assets worth $1 million, and neither company sold either or purchased any of these properties. All firms would have to report to their balance sheets the same amount of net fixed assets as the statements are sent to creditors.

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5 0
3 years ago
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solniwko [45]

Answer:

The company's cost of preferred stock for use in calculating the WACC is 9.65%

Explanation:

For computing the cost of preferred stock, the following formula should be used which is shown below

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where,

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= $9.50 ÷ $98.4

= 9.65%

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Hence, the company's cost of preferred stock for use in calculating the WACC is 9.65%

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