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kodGreya [7K]
3 years ago
7

A lease calls for a minimum rent of $2800 per month plus 4% of annual gross sales in excess of $500,000. What is the annual rent

if the annual gross sales were $725,500?
Business
1 answer:
bonufazy [111]3 years ago
8 0

Answer:

The annual rent is $42,620

Explanation:

The computation of annual rent is shown below:

= Annual rent + (rate × gross sales)

where,

The annual rent is

= Monthly rent × total number of months in a year

= $2,800 × 12

= $33,600

The rate is 4%

The excess gross sales is computed by

= Annual gross sales - gross sales

= $725,500 - $500,000

= $225,500

Now put these values to the above formula

So, the answer would be equal to

= $33,600 + (4% × $225,500)

= $33,600 + $9,020

= $42,620

Hence, the annual rent is $42,620

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The situation where the quantity supplied of a good is greater than the quantity demanded at
aliina [53]

Answer:

Excess supply

Explanation:

Demand is the quantity required or requested by buyers while supply is the quantity of a good that a producer is able to supply to the buyer.

When demand is equal to supply there is equilibrium and no excess in demand or supply.

However when the amount supplied exceeds the demand for a product there will be excess product in the market. This is called excess supply.

Conversely when the quantity demanded is more than that supplied it is excess demand

8 0
3 years ago
Baseball Commissioner Allan H. (Bud) Selig authorized an investigation into alleged steroid use by Major League Baseball players
ruslelena [56]

Answer

Reputation Management

Explanation:

As a way to maintain its popularity with the fans due to the scandal, MLB's need to look into reputation management

6 0
4 years ago
A company has inventory that cost $50,000. Its scrap value is $65,000. The inventory could be sold for $150,000 if manufactured
Lemur [1.5K]

Answer:

It is more profitable to continue processing.

Explanation:

Giving the following information:

A company has inventory that cost $50,000. Its scrap value is $65,000. The inventory could be sold for $150,000 if manufactured further at an additional cost of $80,000.

Sell for scrap= 65,000 - 50,000= 15,000

Continue processing= 150,000 - 80,000 - 50,000= 20,000

7 0
3 years ago
Tunneling Inc. fixed costs are at $100,000. The company has sales of 10,000 units with a price of $84 and variable cost per unit
zubka84 [21]

Answer:

Tunneling Inc.

Degree of operating leverage

= Contribution Margin divided by Operating Income

= $440,000/$290,000 = 1.52

Explanation:

(a) Data and Calculations:

Sales Revenue =   $840,000 (10,000 x $84)

Variable cost =           $400,000 (10,000 x $40)

Contribution =            $440,000

Fixed costs =              $100,000

Depreciation =             $50,000

Operating Income = $290,000

Tax (21%)                    ($60,900)

Net Income =             $229,100

(b) The degree of operating leverage for Tunneling Inc. is 1.52.  It shows the financial impact of a change in sales revenue on Tunneling Inc.'s earnings.  Analysts usually work this ratio out to determine this important effect.

4 0
4 years ago
Assume the reserve requirement is 10%. First National Bank received a deposit of $5,400. If there no slippage, how much could th
natta225 [31]
<span>Reserves fall by $1,000, checkable deposits fall by $10,000, and the monetary base remains uncharged.</span>
4 0
3 years ago
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