Suppose a developer is interested in building a new apartment community. Through her market research, the developer has determin
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Answer:
14 years
Explanation:
The future value of an investment is given by the following equation:
If your mother is investing an amount of P=$340,461 at a rate r=0.08 and the desired future value is F=$1,000,000, the required time of investment 'n', in years, is:
It will take her 14 years to become a millionaire.
Answer:
<em><u>For Break Even Point</u></em>
Oil Change: $ 210,000
Brake repair: $ 90,000
<em><u>For target profit</u></em>
Oil Change: $ 350,000
Brake repair: $ 150,000
Explanation:
Now, we solve for
the target mix:
sales weight times contribution ratio
0.70 x 0.20 + 0.30 x 0.4 = 0.26
Now we solve the break even point for each service outlet:
Oil Change: 78,000 / 0.26 = 300,000 sales revenue
we multiply by the weight to know eahc type of serivce sales revenue
Oil Change: $ 300,000 x 0.7 = $ 210,000
Brake repair: $ 300,000 x 0.3 = $ 90,000
Now we solve for target profit:
(78,000 + 52,000) / 0.26 = 500,000
Oil Change: $ 500,000 x 0.7 = $ 350,000
Brake repair: $ 500,000 x 0.3 = $ 150,000