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vlabodo [156]
4 years ago
10

Charles has decided to open a lawn-mowing company. To do so, he purchases mowing equipment for $5,000, buys gasoline ($2.30 in g

as is required to mow each yard), and pays a helper $10.00 per yard. Prior to opening the lawn company, Charles earned $8,000 as a lifeguard at the neighborhood swimming pool. Assume the money he used to purchase the mowing equipment could otherwise have earned 2 percent per year in the bank and that the mowing equipment depreciates at 10 percent per year. Charles plans to mow 200 yards per year. What is Charles's implicit cost of production per year?
Business
1 answer:
Ket [755]4 years ago
4 0

Answer: Charles's implicit cost of production per year is $8600.

Explanation:

Charles's Implicit cost is the opportunity cost of opening a lawn-mowing company.

Opportunity cost is the amount that is foregone in order to invest in some other business.

The implicit cost in this question is as follows:

(1) The income earned as a lifeguard at the pool = $8000

(2) Interest income on $5000 of 2% = $100

(3) Depreciation of 10% per year on $5000 = $500

Hence, the total implicit cost =  income earned as a lifeguard + Interest income + Depreciation of 10% per year

= $8000 + $100 + $500

= $8600

∴ Charles's implicit cost of production per year is $8600.

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Calgary Industries is preparing a budgeted income statement for 2018. Predicted sales for the year are $730,000 and cost of good
NeTakaya

Answer:

$186,900

Explanation:

The gross profit is the difference between the sales revenue and the cost of good sold. The gross profit percentage is the ratio of gross profit to net sales expressed as a percentage.

As such, the net operating income/loss is the difference between the sales and the total costs .

To get the net income, we would first get the gross income.

Gross income

= $730,000 - (40% * $730,000)

= $438,000

Next we must compute the net income before tax. This is the difference between the gross income and the operating expenses

= $438,000 - $90,000 - $81,000

= $267,000

Income tax expense = 30% * $267,000

= $80,100

budgeted net income for 2018

= $267,000 - $80,100

= $186,900

8 0
3 years ago
A security policy is a _____. set of guidelines set of transmission protocols written document set of rules based on standards a
nalin [4]

A security policy is a way to identify and clarify security goals and objectives

3 0
4 years ago
Suppose a State of California bond will pay $1,000 eight years from now. If the going interest rate on these 8-year bonds is 5.5
svlad2 [7]

Answer:

the bond worth today is $651.60

Explanation:

The computation of the amount of bond worth today i.e. present value is to be shown below:

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where,

Amount = $1,000

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Now placing these values to the above formula

So, the worth of the bond today is

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= $651.60

hence, the bond worth today is $651.60

4 0
3 years ago
Luxury Dwellings Inc. is a condominium-building company that is based in the country of Veritas. It sells high-priced homes to c
adelina 88 [10]

Answer:

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Why is it important to look abroad?

•  Desire to grow

•  Increase in performance and recognition

•  Unsolicited foreign orders

•  Domestic market saturation or limitations The crisis presents challenges at home, but also opportunities abroad

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•  Different geographies have different needs and complement each other in presenting a wide range of gaps and opportunities to build market presences.

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3 years ago
Due to the impact that sudden events could have in the value of bonds, event risk covenants, or provisions, are included in the
Natalka [10]

Answer:

A puttable bond.

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According to the corporate finance institute, "A puttable bond (put bond or retractable bond) is a type of bond that provides the holder of a bond (investor) the right, but not the obligation, to force the issuer to redeem the bond before its maturity date.   Puttable bonds are directly opposite to callable bonds."

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4 0
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