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astraxan [27]
3 years ago
10

It will cost $4,000 to acquire a small ice cream cart. Cart sales are expected to be $3,200 a year for five years. After the fiv

e years, the cart is expected to be worthless as that is the expected remaining life of the cooling system. What is the payback period of the ice cream cart?
Business
1 answer:
Anna [14]3 years ago
5 0
Cost = $4,000
Revenues = $3,200 per year
Life = 5 years

Payback period calculation:
Year -----   Cash flow -------- Investment
Yr 0 -----               ------------ -4,000
Yr 1 ------   3,200  -----------  -800
Yr 2 ------   3,200 -------------- 0

Payback period lies between year 1 and 2.

Therefore,
Payback period = 1+ 800/3200 = 1+0.25 = 1.25 years
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Garcia Industries has sales of $176,500 and accounts receivable of $18,500. The industry average DSO is 27 days, based on a 365-
Brilliant_brown [7]

Answer: 176,500 = 372,879

Explanation:

5 0
3 years ago
Deana and Rod Li went on a one-week vacation at the Club Med Turkoise village, located in Turks and Caicos, a chain of islands i
ivolga24 [154]

Answer:

Price bundling strategy is the correct answer.

Explanation:

In the Price bundling strategy, all the services are combined into a single package and clients are attracted to the package and the Price bundling strategy is a way to hides how much amount customers are paying for every individual thing.

Price bundling strategy helps to reduce the market cost and distribution and also helps to increase profit by giving a discount to the customers as this strategy helps to increases the purchase of more items.

The main objectives of price bundling strategy are

  • To increase sales.
  • To increase the long and short-run gain.
  • To raise market share.
  • To increase the monetary sales.

3 0
3 years ago
Salisbury Corporation has been producing and selling 30,000 caps a year. The company has the capacity to produce 50,000 caps wit
yulyashka [42]

Answer:

Minimum price = $16

Explanation:

As per the data given in the question,

Selling price per unit = $35

Variable cost for manufacturing = $14

Variable cost for selling and administrative = $6

Fixed cost in manufacturing = $128,000

Fixed cost in selling and administrative = $56,000

For Gilbert = 10,000 × ($24 - $14 - $6)

= $40,000

For New customer = 20,000 × (P - $14) = $40,000

= 20,000P - $280,000 = $40,000

P = $16

5 0
3 years ago
What effect, if any, would you expect poor-quality materials to have on direct labor variances?
Elodia [21]

What effect, if any, would you expect poor-quality materials to have on direct labor variances:  If poor-quality materials create production problems, a result could be excessive labor time and therefore an unfavorable labor efficiency variance.

An unfavourable situation or set of conditions is one that involves difficult problems and makes success harder to achieve. They had finally gained independence, but on very unfavorable terms.

What is unfavorable reaction psychology?

An adverse reaction is a negative reaction to a medical procedure or medication. Also known as a negative side effect, these can be caused by a physical sensitivity or allergy to a medication. Other causes can include taking medications too often, not often enough, or in the wrong dosage.

learn more about unfavourable here

brainly.com/question/25801623

#SPJ4

4 0
2 years ago
At a price of $1.00, a local coffee shop is willing to supply 100 cinnamon rolls per day. At a price of $1.20, the coffee shop w
kykrilka [37]

Answer:

a. 2.20

Explanation:

The computation of the price elasticity of supply is shown below;

Here,

P1 = $1 Q1 = 100

P2 = $1.20 Q2 = 150

We know that  

Price elasticity  = percentage change in quantity supplied ÷ percentage     change in price

where  

Percentage change in quantity supplied = (Q2-Q1)÷(Q2+Q1) ÷ 2)×100

= (150-100) ÷(150+100) ÷ 2)×100

= 40

And,  

Percentage change in price is

= (P2-P1) ÷ (P2+P1) ÷ 2)×100

= ($1.20 - $1) ÷ ($1.20 + $1) ÷ 2)×100

= 18.1818

So, price elasticity of supply is

= 40 ÷ 18.1818

= 2.20

5 0
3 years ago
Read 2 more answers
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