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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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Abel Corporation uses activity-based costing. The company makes two products: Product A and Product B. The annual production and
Korolek [52]

Answer:

Activity 2= $11.15

Explanation:

Giving the following information:

Total Activity Activity Cost Pools Total Cost Product A Product B Total

Activity 2 $40,140 2,000 1,600 3,600

<u>To calculate the activity rate for Activity 2, we need to use the following formula:</u>

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

Activity 2= 40,140 / 3,600

Activity 2= $11.15

4 0
3 years ago
ADP reports the following income statement.
oee [108]

Answer:

Forecast of 2020 net earnings = $299.2 million.

Explanation:

Note:

a. See part a of the attached excel file for the calculations of the Historic Percent of Total Revenue.

b. See part b of the attached excel file for the Forecast of ADP’s 2020 income statement.

From part b of the attached excel file, we have:

Forecast of 2020 net earnings = $299.2 million.

Download xlsx
3 0
3 years ago
Assume for Guatemala that the domestic price of coffee without international trade is higher than the world price of coffee. Thi
Marina CMI [18]

Answer:

other countries have a comparative advantage over Guatemala in the production of coffee, and Guatemala will import coffee. 

Explanation:

This question is incomplete. Please check the attached image for a complete question.

A country has comparative advantage in the production of a good or service If it produces the good or service at a lower opportunity cost when compared to its trading partners.

The price of Guatemala's coffee is higher when compared to the world price of coffee without international trade. It shows that Guatemala doesn't have a comparative advantage in the production of coffee. Guatemala should stop producing coffee and import instead. This would enable Guatemala focus more resocurces on the production of good for which it has comparative advantage.

I hope my answer helps you

3 0
3 years ago
The reduction of on the job injuries and illnesses would benefit employers, because they would
marusya05 [52]
B is the correct answer.
8 0
3 years ago
On March 1, 2018, E Corp. issued $1,400,000 of 8% nonconvertible bonds at 103, due on February 28, 2028. Each $1,000 bond was is
Anvisha [2.4K]

Answer: $126,000

Explanation: Shareholders equity can be defined as the total amount of investment done by the shareholders in the company. This investment can be done through various kinds of securities like common stock, preference shares.

As per this problem shareholder equity would be

= (no. of shares to be collected by warrant holders)*(price of each warrant)

and,

no. of shares to be collected = (1400 bonds) * (30 shares)

                                                  = 42,000 shares

.

therefore, equity :-

(42,000 shares) ( $3 ) = $126,000

6 0
3 years ago
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