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AVprozaik [17]
3 years ago
14

Labor costs are 30% of sales. Other operating costs are $38,000 per month (including $10,000 of depreciation). Both of these are

paid in the month incurred. The cash balance on March 1 is $8,000. A minimum cash balance of $6,000 is required at the end of the month. Money can be borrowed in multiples of $1,000. How much cash will be disbursed in total in March
Business
1 answer:
Alina [70]3 years ago
3 0

$14,000 rupees will be disbursed totally in march.            

<u>Explanation</u>:

  • The operating cost is $38,000 per month. This is including depreciation. So cash pending on March 1 is $8,000.
  • At the end of March month, the cash balance of $6000 is required. So a total of $14,000 is required at the end of the month. Including the labor costs, he wants to pay $14,000.
  • He can borrow money in multiples of $1000. For emergencies, this money can be borrowed. So $14,000 should be dispersed in the month of March.                        
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