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3 years ago

You are considering starting a walk-in clinic. Your financial projections for the first year of operations are as follows:

Business

1 answer:

enot [183]3 years ago

7 0

Answer:

a. clinic's projected P&L statement.

Revenues 400,000

Less Expenses:

Wages and benefits (220,000 )

Rent (5,000 )

Depreciation (30,000 )

Utilities (2,500 )

Medical supplies (50,000)

Administrative supplies (10,000)

Net Income or (loss) before tax 182,500

Income tax at 30% (54,750)

Income or (loss) 127,750

b. 9,184 visits

c. 12,125 visits

Explanation:

Fixed Costs = 220,000 + 5,000 + 30,000 + 2,500 + 54,750

= $312,250

Contribution = Sales - Variable Costs

= $400,000 - ($50,000+$10,000)

= $340,000

Contribution per unit = $340,000 / 10,000 visits

= $34

Break even point = Fixed Costs / Contribution per unit

= $312,250 / $34

= 9,184 visits

Units for a Profit target = Fixed Costs + Target Profit / Contribution per unit

= ($312,250 + $100,000) / $34

= 12,125 visits

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attempt to avoid price competition, prefering instead to differentiate themselves by precisely targeting customer segments with

ELEN [110]

Answer:

Specialty store

Explanation:

A specialty store is a retail business that specializes in a particular range of products and its related merchandise. A specialty store will have an extensive depth of the merchandise that its stocks. For example, a business may focus on office supplies, men clothing, or household appliances as opposed to having a wide range of consumer products.

Specialty stores will often sell their products at a premium price. They offer excellent and friendly customer service. Employees at a specialty store have in-depth knowledge about their products and will provide expert advice to customers.

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3 years ago

2) Economic Growth: Use the PPF from above to illustrate the effects of saving and investment upon national GDP. Use a PPF to sh

Inessa [10]

Answer and Explanation:

Economic Growth can be defined as an increment in production capacity of an economy using all its available resources. The PPF illustrates the largest possible quantity of goods and services a nation can produce base on its available resources. An outward shift in the economy’s production possibility frontier (PPF) depicts a raise in productive capacity of an economy. An outward shift implies that an economy has capacity to increase its production outputs. This can be as a result of the economy employing new technology, allowing specialization, increasing its labour force, using new production approaches etc. Likewise, an inward shifting PPF implies an economy has witness a loss or exhaustion of some of its scarce resources and it will culminate into reduction in an economy’s productive potential.

Effects of saving and investment upon national GDP

level of savings direct related to the level of investment, investment feeds on available finance from saving. If more people save, the banks will be able to lend more to firms to support their investments.

low savings and investment implies a PPF inward shift. low savings in economy implies that the economy is opting for short-term consumption over long-term investment, and this will lead to future undue pressure on available infrastructures ad resources.

spending on consumer goods vs capital goods effect on the economy

In the short run, the economy must prefer using available resources to produce capital rather than consumer goods. Standards of living will be affected, as private consumption will have access to fewer resources. However, in the longer run, the raised production of capital goods will boost the production of more consumer goods ad therefore standards of living will experience more increase than they would have witness if the economy had spent most of its income on consumer goods.

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3 years ago

Why is using money as a medium of exchange preferable to bartering?

Y_Kistochka [10]

Answer:

Money as a medium of exchange is more preferable because of its less cumbersome nature.

Explanation:

Money as a medium of exchange is more suitable because of its less cumbersome nature. Money was invented because of the inefficient nature of the barter system.

Money is easily stored compared to a barter system.

Money as a medium of exchange eliminates the barter system's problem of double coincidence of wants. Barter works when you trade things you own for things you want. If for example you want a bicycle and you own a goat, you have to look for someone who wants a goat and owns a bicycle willing to make an exchange, which can be quite difficult.

Money is an acceptable medium of exchange to all parties which makes it more preferable to bartering.

8 0

3 years ago

Gilson Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and

Ann [662]

Answer:

a. $2,020 Favorable

Explanation:

The computation of spending variance for direct materials in April is shown below:-

For computing the spending variance for direct materials in April first we need to find out the actual price per unit which is here below:-

Actual price per unit = Actual direct material ÷ Actual units purchased

= $49,086 ÷ $5,060

= $9.70

Spending variance for direct materials in April = (Actual price per unit - Standard price per unit) × Actual quantity

= ($9.70 - $10.10) × 5,060

= -$0.4 × 5,060

= $2,024 Favorable

which is closest to $2,020 Favorable.

3 0

3 years ago

Rouse Corporation's December 31, 2012 balance sheet showed the following: 8% preferred stock, $20 par value, cumulative, 20,000

Scorpion4ik [409]

Answer:

See bellow

Explanation:

With regards to the above, Rouse total stockholder's equity is computed as;

= Preferred stock + common stock + paid in capital in excess of par (preferred stock and common stock) + retained earnings - Treasury stock

= $150,000 + $1,950,000 + $60,000 + $27,000,000 + $7,650,000 - $630,000

= $53,730,000

7 0

3 years ago