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3 years ago

The following is cost information for the Creamy Crisp Donut Company:

Business

1 answer:

SCORPION-xisa [38]3 years ago

5 0

Answer:

Given:

Annual lease = $22000

Annual revenue = $380000

Payments = $120000

Utilities = $8000

Value (entrepreneur's talent ) = $80000

Forgone Entrepreneur's interest = $6000

Therefore, we'll first compute the accounting profit using the following formula :

Accounting profit = Annual revenue - Annual lease - Payments - Utilities

Accounting profit = 380000 - 22000 - 120000 - 8000

Accounting profit =$230000

Therefore, the economics profit can be evaluated using the following formula:

Economic profit = Accounting profit - Opportunity cost (Salary of entrepreneur) - Value (entrepreneur's talent) - Forgone Entrepreneur's interest

= 230000 - 50000 - 80000 - 6000

= $94000

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project team

Explanation:

Based on the information provided within the question it can be said that the term that is being described in this scenario is a project team. This is a team full of individuals from different groups or department, each of which has a different function or specialization which allows them to provide a unique input to the team and hep come up with unique ideas for achieving the team goal.

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3 years ago

Bean Brewers, Inc., a manufacturer of coffee makers, had the following activities, allocated costs, and allocation bases: A

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Explanation:

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3 years ago

g An investor has invested $600,000 in a new rental property. Her estimated annual costs are $16,000 and annual revenues are $48

Tamiku [17]

Answer:

5.09%

Explanation:

The internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested.

IRR can be calculated using a financial calculator.

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Cash flow in year 30 = $32,000 + $500,000 = $532,000

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To find the IRR using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

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I hope my answer helps you

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3 years ago

Selected operating data for two divisions of Outback Brewing, Ltd., of Australia are given below: Division Queensland New South

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Answer:

Queensland 14.7%

New South Wales is 24.0%

Explanation:

This is a case of modified return on investment since the question was specific that the return on investment should in terms margin and assets turnover.

The first task would be to compute margin and turnover whereas the return on investment would be the multiples of both performance measures.

Margin =operating income/sales

Asset turnover=sales/average operating assets

operating income/sales*sales/average operating assets=operating income/average assets

This question also require proofing the above formula as I have done.

Margin Assets turnover ROI

Queensland$82,320/$784,000=10.5%$784,000/$560,000=1.4 14.7%

South Wales$118,800/$1,485,000=8% $1,485,000/$495,000= 24.0%

R0I=margin*assets turnover

Queensland=10.5%*1.4=14.7%

New south sales=8%*3=24%

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