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3 years ago

(a) A local bookseller is considering expanding store space to increase his capacity for books.

Business

1 answer:

Ksju [112]3 years ago

8 0

The book seller should invest in the extra space.

Explanation:

As per the given data:

rent for the additional space given is $300 per year, the additional profit that will be pulled by adding on the space = $4000 per year, the current rate of interest given is = 12%

In order to calculate about the decision, the present values needs to be calculated first

The present value of the investment = (- $ 3000 plus $ 4000) by 1.121

The present value of the investment = $ 571.43

The present value of the investment is positve, hence the book seller should invest in the extra space.

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Lupe made a down payment of $2200 toward the purchase of a new car. To pay the balance of the purchase price, she has secured a

BlackZzzverrR [31]

Answer:

Cash price of the car

= Down payment + A(1 - (1+r/m)-nm

r/m

= $2,200 + $200(1-(1+0.11/12)-4x12

0.11/12

= $2,200 + $200(1-(1+0.0091666667)-48

0.0091666667

= $2,200 + $200(1-(1.009166666667)-48

0.0091666667

= $2,200 + `$200(38.691421)

= $9,938

Explanation:

The cash price of the car is equal to the down payment plus the present value of the monthly installment. The present value of the monthly installment is obtained by using present value of annuity formula.

7 0

3 years ago

In her work as an accountant, Sandra Garcia recognizes that for every transaction that affects an asset, an equal transaction mu

adell [148]

Answer:

Correct option is (B)

Explanation:

In accounting, double entry book keeping is followed as every financial transaction has dual effect on the books of accounts. It starts with the accounting equation which stated:

Assets = Liabilities + Stockholder's Equity

If there is an increase in assets, there has to be a subsequent increase in either liability or stockholder's equity.

Every transaction is debited in one account and credited in some other account.

For example Depreciation for the year is $2,000. Depreciation expense account is debited by $2,000 and accumulated depreciation account is credited by $2,000.

Since Sandra recognizes that an effect on asset will have a simultaneous effect on either liability or equity, she is following double entry bookkeeping.

5 0

4 years ago

During March, Adams Company had sales of $5,000,000, variable expenses of $3,000,000, and fixed expenses of $1,500,000. Assume t

ad-work [718]

Answer:

Option (c) is correct.

Explanation:

Variable cost as a percent of sales:

= (Variable expenses ÷ Sales) × 100

= ($3,000,000 ÷ $5,000,000) × 100

= 60%

If Sales = X

then Variable cost is 0.6X (i.e. 60% of Sales)

Sales - Variable cost - fixed expenses = net operating income

X - 0.6X - 1,500,000 = 300,000

0.4X = 300000 + 1500000 = 1800000

X = 1800000 ÷ 0.4

= 4,500,000

4 0

3 years ago

A merchandising company's sales budget indicates the following sales: January: $25,000; February: $30,000; March: $35,000. Sales

Svetradugi [14.3K]

Answer:

The total selling expenses for the quarter will be $25,800

Explanation:

The computation of the total selling expenses for the quarter is shown below:

= Salaries + commission + Advertising

where,

Salaries = Expected salaries × number of months in one quarter

= $5,000 × $3

= $15,000

Commission = (January sales + February Sales + March Sales) × Commission percentage

= ($25,000 + $30,000 + $35,000) × 10%

= $9,000

And, the adverting equal to

= Expected advertising expenses × number of months in one quarter

= $600 × 3 months

= $1,800

Now put these values to the above formula

So, the value would be equal to

= $15,000 + $9,000 + $1,800

= $25,800

3 0

3 years ago

The country of Lilliput has low unemployment and high consumer spending, and small businesses are thriving. However, prices are

lara31 [8.8K]

Answer:

Raise the income tax, which gives citizens less money to spend, and buy more services from civilian - owned businesses, which creates more jobs.

Explanation:

To prevent inflation, Lilliput's government should raise the income tax, which gives citizens less money to spend and buys more services from a civilian-owned business, which creates more jobs.

In this way, it can increase employment and reduce consumer spending which in turn will prevent inflation.

7 0

3 years ago