Which of these is the best example of successfully managing a financial asset?

The Express Meal has two restaurants that are open 24 hours a day. Fixed costs for the two restaurants together total $ 451 comm

KonstantinChe [14]

Answer:

(1) $1,230,000

(2) 110,000 customers

Explanation:

Given that,

Fixed cost = $451,000 per year

Average sales check per customer = $ 8.20

Average cost of food and other variable costs for each customer = $ 4.10

Income tax rate = 30%

Target net income = $114,800

(1) Contribution margin ratio:

= (Selling price - Variable price) ÷ Selling price

= ($ 8.20 - $ 4.10) ÷ $ 8.20

= 0.5

Income before tax:

= Net income ÷ (1 - Tax rate)

= $114,800 ÷ (1 - 0.3)

= $164,000

Desired revenue (dollars):

= (Fixed cost + Income before tax) ÷ Contribution margin ratio

= ($451,000 + $164,000) ÷ 0.5

= $1,230,000

(2) Customers are needed to break even:

= Fixed cost ÷ contribution per unit

= $451,000 ÷ ($8.20 - $4.10)

= $451,000 ÷ $4.10

= 110,000 customers

8 0

3 years ago

Consider the following $1,000 par value zero-coupon bonds:

ratelena [41]

Answer:

The expected 1-year interest rate 2 years from now should be 8.11%

Explanation:

The Zero-coupon rate bond is a bond that does not offer the coupon payment. This coupon is issued at a deep discount value. The only cash flow associated with this bond is the face value at the maturity date.

Use following equation to calculate the The expected 1-year interest rate 2 years from now

( 1 + 1 years maturity rate)^1 x ( 1 + 2 years maturity rate)^2 = ( 1 + 3 years maturity rate)^3

( 1 + 1 years maturity rate) x ( 1 + 6.60%)^2 = ( 1 + 7.10%)^3

( 1 + 1 years maturity rate) x ( 1.0660)^2 = ( 1.0710)^3

( 1 + 1 years maturity rate) = ( 1.0710)^3 / ( 1.0660)^2

( 1 + 1 years maturity rate) = 1.228481 / 1.136356

1 + 1 years maturity rate = 1.081071

1 years maturity rate = 1.081071 - 1

1 years maturity rate = 0.081071

1 years maturity rate = 8.1071%

1 years maturity rate = <u>8.11%</u>

5 0

3 years ago

Question 3 Lara Beal allocates wealth between two periods: youth and old age. Currently (in her youth) she has $8,000 in cash. S

Gnesinka [82]

Answer:

The correct answer is "$9450".

Explanation:

Given:

Payoff from investment,

= $6000

Lending to bank,

= $8000-5000$

= $3000$

Now,

At 15% interest,

The amount to be received from bank will be:

= $3000\times (1+\frac{15}{100} )$

= $3000(1+0.15)$

= $3000\times 1.15$

= $3450$ ($)

hence,

In her old age, most she can assume will be:

= $6000+3450$

= $9450$ ($)

4 0

3 years ago

Use the following information to answer the questions:

Nostrana [21]

Answer:

A.) Since the United States has an aging population and thus an expected decline in working population in the future, therefore, increasing the output per worker seems more relevant in the United states than increasing the proportion of working population. Because Mexico on the other hand boasts a youthful population, Mexico can increase its standard of living by either increasing its output per worker or by increasing the proportion of the population that works.

B.) GDP INCREASES.....

STANDARD OF LIVING ALSO INCREASES....

INCREASE IN NUMBER OF EMPLOYED WORKERS HAS GREATER WEIGHT THAN THE DECREASE IN LABOR PRODUCTIVITY

Explanation:

A.) Since the United States has an aging population and thus an expected decline in working population in the future, therefore, increasing the output per worker seems more relevant in the United states than increasing the proportion of working population. Because Mexico on the other hand boasts a youthful population, Mexico can increase its standard of living by either increasing its output per worker or by increasing the proportion of the population that works.

2.). - - - - - - - - - - - - - - - - - - - - - YEAR - - - - - -

------ - - - - - - - - - - - - - - - 2014 - - - - - - - 2015

Population - - - - - - - - - - 1000 - - - - - - - 1000

Employed workers - - - - 400 - - - - - - - - 440

Labor productivity - - - - 2000 - - - - - - - 1900

GDP = Labor productivity × employed pop.

2014 GDP = 2000 × 400 = 800,000

2015 GDP = 1900 × 440 = 836,000

GDP INCREASES.....

STANDARD OF LIVING ALSO INCREASES....

INCREASE IN NUMBER OF EMPLOYED WORKERS HAS GREATER WEIGHT THAN THE DECREASE IN LABOR PRODUCTIVITY

7 0

3 years ago

Sharon is opening a new pizza restaurant that will use a combination of workers and ovens to produce pizzas. Sharon knows from e

mr Goodwill [35]

Answer:

Q+X = [4K^1/2L^1/2] + X

Explanation:

L = labour = workers

K = capital = ovens

You don't have the exact value of Q since the values of K and L are not given.

You should however note that Q is less than or equal to 19 pizzas/hour, since Sharon sought to stretch his capacity by producing up to 20 pizzas/hour owing to the presence of a competitor.

Assuming the distance/difference between 20 and Q is X (a positive number).

Sharon's new hourly cost function will be:

$Q+X = [4K^1/2L^1/2] + X$

Q+X = 20 and the law of mathematics states that whatever you add to the left hand side must be added to the right hand side, hence the addition of X to both sides of the equation instead of the left hand side alone.

The function can now be rewritten as 20 = [4K^1/2L^1/2] + X

where X = 20 - Q

7 0

3 years ago