Answer:
Expenses must be close or above $2000 per month
Explanation:
For a business to operate at a profit, its revenues must exceed the expenses by a sizable proposition. Revenues refer to income from business activities, while expenses are the cost incurred in generating that income. Should the costs match or be higher than the revenue, a business will find it challenging to continue operating.
In this case, the business owner is generating revenues of $2000 per month. If he is struggling to stay open, it means the monthly expenses are around or above $2000. The $2000 that the business is generating per month is not sufficient to cater for all expenses and the desired profits. The business owner is probably making losses, and that why he is having trouble keeping the doors open.
Answer:
economic order quantity (EOQ) = √(2SD/H)
D = annual demand = I will assume that the company works during 250 days per year (from Monday to Friday) = 250 x 500 = 125,000
S = order cost = $2,250
H = holding cost = $275
EOQ = √[(2 x 2,250 x 125,000) / 275] = 1,430.19 ≈ 1,430 tons
cycle length:
125,000 / 1,430 = 87.4 purchases per year
365 days / 87.4 = place a purchase order every 4.2 days
total annual cost:
total costs = (87.4 x $2,250) + (125,000 x $1,100) + (1,430/2 x $275) = $196,650 + $137,500,000 + $196,625 = $137,893,275
Double-declining-balance rate:
By straight-line method, annual depreciation expenses = (85,000-5,000)/5 = $16,000
Rate of depreciation = 16000/(85,000-5,000) = 0.2 = 20%
Then, double-declining-balance rate = 2*Straight-line rate = 2*20 = 40%
From 2nd January 2017 to 31st December 2018 can be approximated as 1 year.
Therefore,
Depreciation expense in yr 1 = 40/100 * 85,000 = $34,000
And,
Book value at December 31 2018 = $85,000 - $34,000 = $51,000
It can be seen that the correct answer is b.
Answer:
Financial goal: Buying a car.
Risks: High interest rates. Being scammed. cost of insurance going up
Advantages: newer cars usually mean better gas mileage. less repairs. builds credit.
It is important to make decisions with others inputs as at times we can often get distracted by things in our life leading us to make poor choices. Hence emotional buying. It can release endorphins when buying things making you feel better for a short period of time however, it always goes away.
Putting money back every time you get paid and absolutely do not touch it. That money is no longer yours. It is only for the one thing you were saving for! The stock market is very unreliable; it is basically gambling. It fluctuates quite a lot especially now during the pandemic. 401K's are fluctuating around 3,000 a day! Do not gamble your money.
Explanation:
Answer: 7%*in real terms, but 10% nominally
By real prices, we mean prices<span> adjusted for general price level changes over time like inflation or deflation. Nominal prices are the current dollar value of a product at the time it was produced.</span>
<span>Julie received a 10% wage increase but since the consumer prices rose by 3%, in real terms, the increase she received is only 7%. In nominal term, it is 10%.</span>
