Answer:
$926,000
Explanation:
For computing the initial cost of the warehouse project, we consider the current value of the land i.e represent the opportunity cost and the land value which is purchased six years ago for $874,500 represent the sunk cost which is not recoverable now. So, this sunk cost is not relevant.
And, the lease cost is also not relevant as the lease period will be ended soon.
All other information which is given is not relevant. Hence, ignored it
Answer:
77.27% or
(17/22)%
The loan will accepted
Explanation:
property value 550,000
haircut 125,000
550,000 - 125,00 = 425,000 mortage value
425,000/550,000 = 77.27% = (17/22)%
The ratio is below the cutoff, so it is within the boundaries the lender expect. The loan will be given.
Answer:
Pine Street should sell finished bookcases because they have a higher contribution margin.
Explanation:
We compare the contribution margin of the two categories to find out whether Pine Street should sell unfinished or finished bookcases.
Pine Street Inc.
Unfinished bookcases
Contribution Margin
Sales Price $58.10
Less Production costs
Variable Costs $37.49
<u>Fixed Costs $10.50 (47.99)</u>
<u>Contribution Margin $ 10.11</u>
Pine Street should sell finished bookcases because they have a higher contribution margin. It is almost double of the unfinished book cases contribution margin.
Pine Street Inc.
Finished bookcases
CONTRIBUTION MARGIN
Sales Price $74.91
Less Production costs
Variable Costs $37.49 + $5.79 = $ 43.28
<u>Fixed Costs $10.50 $ (53.78)</u>
<u>Contribution Margin $ 21.13</u>
The answer is a laptop computer.
Thus, Laptop computers would be classified as homogeneous shopping products.
What is shopping products?
- A shopping item may be a sort of item that requires shopper investigate and comparison of brands.
- Homogeneous and heterogeneous are the two particular sorts of shopping items.
- Homogeneous items are seen by consumers as exceptionally comparable in nature and the ultimate buy is more often than not decided on the lowest price.
- If our farmer's feed compactor required substitution, he would seek for the foremost reasonable one.
- Other illustrations of this sort of shopping item would be apparatuses, such as washers, dryers, or a cooler.
- A item can be a business item or a buyer item. If the end client of the item is the customer, at that point the item may be a customer item.
- In the event that the conclusion client could be a commerce, at that point it is categorized as a commerce item.
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