1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
labwork [276]
3 years ago
11

You are analyzing an office building to determine if it make sense to build it. the building and site improvements cost $145 and

the investor requires a 6 percent return. if market rents are $11 per square foot. market vacancy and credit loss is 5 percent and expenses are 15 percent. what is market net operating income.
Business
1 answer:
Sophie [7]3 years ago
7 0

Answer:

market net operating profit per square foot = $8.80

Explanation:

total investment = $145 per square foot

the investor requires a 6% rate of return = $145 x 6% = $8.70 per square foot

total revenue per square foot =                                                      $11

proportional market vacancy and credit loss = $11 x 5% =        ($0.55)

<u>other expenses = $11 x 15% =                                                       ($1.65)  </u>

market net operating profit per square foot =                             $8.80

The project should be carried out since the net operating profit is larger than the investor's required rate of return.

You might be interested in
What is a production possibility curve
d1i1m1o1n [39]
Hey I think A production–possibility frontier or production possibility curve is a curve which shows various combinations of set of two goods which can be produced with the given resources and technology where the given resources are fully and efficiently utilised per unit time
8 0
3 years ago
With the community interested in eating healthy, Mary Catherine, a restaurant owner, is considering adding more gluten-free dish
Cerrena [4.2K]

Answer:

The correct answer is (C)

Explanation:

A decision-making process is a vital factor which can contribute towards a successful business. Likewise, some people rely on their institution and gut feeling to make a decision rather than to see the market demand and supply. This type of decision is known as a non-rational decision. Mary-Catherine is making a decision solely based on her Gut feelings which is why it is a not rational decision-making process.

7 0
3 years ago
The profit margin on an item the company sells can best be defined as:
Akimi4 [234]

Answer:

B) Price of the unit minus cost of goods sold per unit.

Explanation:

A)

Costs involving monetary payments are explicit costs. Labor costs and total debt payments, both are explicit costs.

B)

The difference between revenue earned and cost of goods sold is our profit margin. Price of the unit is revenue earned and deducting cost of goods sold per unit from it will give us profit margin of an item.

C)

The unit price of an item is called the price of the unit, also called sales price. It could in Kilogram, Liter, etc. The price of the unit is considered part of the profit margin but not actually comprise profit margin itself.  

D)

The unit cost of an item is called the cost of goods sold per unit. The unit could be in Kilogram, Liter, etc. The cost of goods sold is usually deducted from the price of the unit to derive to the profit margin. Hence a part of profit margin but not actually a profit margin itself.

6 0
3 years ago
Read 2 more answers
During Year 1, Long Beach Corporation completed the treasury stock transactions described below: Jan. 2 Reacquired 1,000 shares
svet-max [94.6K]

Answer:

Cash A/c Dr.           400 \times $12 = $4,800

      To Treasury Stock A/c                      400 \times $10 = $4,000

      To Additional Paid In Capital            400 \times $2 = $800

(Sale of treasury stock, on premium of $2)

Explanation:

When originally the treasury stock was purchased then the entry would be:

Treasury Stock A/c Dr.       1,000 \times $10

                  Cash A/c                                              $10,000

Recording purchase of treasury stock.

Now when the stock is sold for $12 each, then the amount of $2 = $12 - $10 = Additional Paid in Capital.

Therefore entry will be:

Cash A/c Dr.           400 \times $12 = $4,800

      To Treasury Stock A/c                      400 \times $10 = $4,000

      To Additional Paid In Capital            400 \times $2 = $800

Sale of treasury stock, on premium of $2

4 0
3 years ago
The ________ would cause a supervisor to believe that an employee's lateness is due to a lack of motivation to attend work rathe
Alekssandra [29.7K]

Answer: Fundamental attribution error

Explanation:

 The fundamental attribute error is one of the type of attribute effect that basically describe about the individual person behavior, personality and the internal factors.

According to the given question, the fundamental attribute error is basically cause a manager to believe an employees lateness and it is due to the employees lack of motivation in work and it is typically beyond the control of employee.

 Therefore, Fundamental attribution error is the correct answer.

4 0
3 years ago
Other questions:
  • An agreement between two adults to pay $300 cash for a bicycle is an example of a contract that is
    8·1 answer
  • Subcontractor's bid:
    6·1 answer
  • Jenna is looking to buy a new computer. When would the price elasticity of demand be most elastic for her computer? Order the si
    8·1 answer
  • What is the goal of ergonomics?
    5·1 answer
  • The __________ rate tells you how much one unit of currency is worth when converted to another currency.
    14·1 answer
  • Question Content Area Flyer Company sells a product in a competitive marketplace. Market analysis indicates that its product wou
    10·1 answer
  • The Sealing Company has 1,500 bonds outstanding that are selling for $1,060 each. The company also has 5,000 shares of preferred
    10·1 answer
  • The airlines sold fewer tickets to business travelers during the "Great Recession" due to more companies using video conferencin
    12·1 answer
  • Financial tension may arise from large scale migration of low skilled labor into developed countries due to:_____.
    9·1 answer
  • Cakery bakery receives $1,000 from a customer on august 5, 2016 for a wedding cake to be delivered on september 19, 2016. what w
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!