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3 years ago

Once a business owner proves that a franchise is successful, his or her franchise will automatically be renewed True or False?

Business

2 answers:

sladkih [1.3K]3 years ago

6 0

That statement is false

Even if the business owner is successful in managing the franchises, that owner still needs to talk to the franchise owners for re-negotiation. During the re-negotiation, the term of agreement might be changed to accommodate the increasing revenue, numbers of customers or business expansion.

Usimov [2.4K]3 years ago

5 0

The answer is False:)

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Vanessa Company is evaluating two projects. project 1 is a project requiring a capital expenditure of 814,400. the project has a

Olegator [25]

Answer:

The average rate of return on investment using:

+ Straight line method: 23.58%

+ Net present value: 17.85%

Explanation:

* The average rate of return on investment using straight line method:

We have Average rate of return = Average net profit/ Average investment

with average net profit = (90,000 + 80,000 + 40,000 + 30,000 + 240,000)/5 = $96,000

average investment: (investment at the beginning + investment of the end) /2 = 814,400/2 = 407,200

=> Average rate of return = 96,000 / 407,200 = 23.58%

* The average rate of return on investment using net present value:

The average rate of return is the internal rate of return on the project which is the rate that brings the net present value to zero.

Denote the rate as x => (1+x)^(-t) is the discount rate of year t. Denote 1+x as a, we have:

-814,400 + 210,000/a + 200,000/a^2 + 160,000/a^3 + 150,000/a^4 + 720,000/a^5 = 0 <=> a = 1.1785

=> x = 17.85%

6 0

3 years ago

Maritime Marine Company has total estimated factory overhead for the year of $986,800, divided into four activities: fabrication

Hatshy [7]

Answer:

Instructions are below.

Explanation:

Giving the following information:

Estimated costs:

fabrication= $386,400

assembly= $207,900

setup= $112,000

inspection= $280,500.

Fabrication Assembly Setup Inspection

Speedboat: 1,200 dlh 1,800 dlh 60 setups 600 inspections

Bass boat: 1,800 1,200 100 200

3,000 dlh 3,000 dlh 160 setups 800 inspections

First, we need to calculate the overhead rate for each activity:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

fabrication= 386,400/3,000= $128.8 per direct labor hour

assembly= 207,900/3,000= $69.3 per direct labor hour

setup= 112,000/160= $700 per setup

inspection= 280,500/800= $350.63 per inspection

Now, we can allocate overhead to each product:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Speedboat= 1,200*128.8 + 1,800*69.3 + 60*700 + 600*350.63

Speedboat= $531,678

Bass boat= 1,800* 128.8 + 1,200*69.3 + 100*700 + 200*350.63

Bass boat= 455,126

5 0

3 years ago

The Clemson Company reported the following results last year for the manufacture and sale of one of its products known as a Tam.

serious [3.7K]

Answer:

See below

Explanation:

According to the information above, there would be no sales if TAM is discontinued as there would be no cost traced to it safe for $145,000 for fixed manufacturing overhead.

We already know that the net operating loss was $55,000 the fixed manufacturing overhead of $145,000 would further increase the loss by $90,000

5 0

3 years ago

The Safe-T Airbag Company manufactures airbags that are used in automobiles. Fly Motor Company manufactures automobiles in which

melamori03 [73]

Answer:

(A)Requirements Contract

Explanation:

A requirements contract is defined as a contract in which one party agrees to supply as much good/service as desired by the other party. In exchange, the other party implicitly promises that it will obtain its goods or services exclusively from the first party.

Since Fly Motor Company agrees to purchase all the airbags it will need from Safe-T. Airbag company, the requirement of exclusive purchase is satisfied.

6 0

3 years ago

Total revenue decreases as the price of a good increases. true or false

Ipatiy [6.2K]

Answer: False

Explanation:

Total Revenue is the total amount that is received in return on sales of goods and services.

It is calculated as Price multiply by Quantity.

If the price of a product increases the revenue would also increase ceteris paribus( all things being equal). If the price of a product was $10 and 4 units were purchased Total revenue would be $40 and if price increases to $20 and 4 units were still purchased total revenue would be $80 assuming that we’re not taking into consideration any other factor like elasticity or type of good.

If price increases revenue increases too.

8 0

3 years ago