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
vampirchik [111]
3 years ago
7

A regional jet manufacturer delivers 20 regional jets to an airline under long-term leases. The leaseterms are for 15 years with

annual payments of $5 million per plane; the first payment is due on delivery.The company classifies the leases as finance leases and prepares its financial statements according to USGAAP. The company usually sells these jets for $45 million each, with production cost averaging $40million per jet. In the year in which the leases are signed, if an interest rate of 7% is used to determine thepresent value of the lease payments on the deal, the gross profit on this transaction will be closest to:
A.$175 million.
B.$100 million.
C.$111 million.
Business
1 answer:
Setler79 [48]3 years ago
5 0

Answer:

Gross profit per jet = Selling price - Production cost per jet

Gross profit per jet = $45 million - $40 million

Gross profit per jet = $5 million

Gross profit = $5 million x 20 jets

Gross profit = $100 million

Explanation:

Gross profit = Sales - Production cost. In this case, we need to calculate gross profit per unit and multiply the gross profit per unit by number of jets sold.

You might be interested in
Which if the following is not form of mass communication
leva [86]

Answer:

out of given option, job interview is not  the form of job interview.

Explanation:

out of given option, job interview is not  the form of job interview.

Mass communication is a method of sharing information with large parts of population via media

we know that mas communication is the communication which include mass either in the form listener or speaker.

if we take rest three option we will find that all three types are include mass.

5 0
3 years ago
Read 2 more answers
Big Sky Sports sells hunting and fishing equipment and provides guided hunting and fishing trips. Big Sky Sports is owned and op
stiv31 [10]

Answer:

(a)

1. Kalispell State Bank

2. Glacier Boutique

3. Big Sky Sports

4. Kalispell State Bank

5. Big Sky Sports

6. Big Sky Sports

7. None of the above

8. Glacier Boutique

9. None of the above

10. Big Sky Sports

(b) Business transactions refers to the transactions that are related to only business, such as purchase of land, machinery, goods for business purposes. Any type of personal transaction is not included in business transaction.

6 0
3 years ago
Scrooge, Inc. prepares adjusting entries only at the end of its fiscal year, August 31. Scrooge has the following unadjusted acc
o-na [289]

Answer:

$6,100

Explanation:

The computation of the net income is shown below:

= Service revenue in trial balance + ( unearned revenue × given percentage) - (rent expense in trial balance) + ( Prepaid rent × 2 months ÷ 12 months) - (wages expense in trial balance + adjusted trial balance)

= $5,000 + ($4,000 × 80%) - ($800 + $3,600 × 2 months ÷ 12 months - ($600 + $100)

= $5,000 + $3,200 - $1,400 - $700

= $6,100

4 0
3 years ago
The following information is taken from the records of Erie Corp.(in thousands) for the year ended on December 31: 2019 2018 Sal
den301095 [7]

Answer:

<u>Favourable Changes:</u>

Sales

Gross Profit

Operating Income

Interest Expense

Net Income

<u>Unfavourable Changes:</u>

Cost Of Sales  

Selling Expenses  

General Expenses

Other Revenue

Income Taxes

Explanation:

Observe Movement from 2018 results to 2019 results

                                        Erie Corp

                   Vertical Analysis of Income Statement

                                                                2019                    2018

Sales                                                        1,397                    1,122

Less Cost Of Sales                                   935                      814

Gross Profit                                               462                      308

<u>Less Operating Expenses</u>

Selling Expenses                                      154                       121

General Expenses                                     88                        77

Operating Income                                   220                       110

<u>Less Non- Operating Expenses</u>

Other Revenue                                            4                          7

Interest Expense                                         2                          9

Income Taxes                                           134                        66

Net Income                                                88                        42

8 0
3 years ago
Mr. And mrs. Atoll are planning a party for 10 people and want to make sure they have enough soda for everyone to have two bottl
melomori [17]

The option that makes the most sense for the party by Mr and Mrs Atoll is one case of 24 sodas at $18.50.

<h3>Why this option is the cheapest</h3>

The reason for this is that given the guests they are entertaining, this option is the most cheapest and effective.

How to calculate for the way that the drink would go round

a. Each bottle is $1.5. Two bottles for 1 = 1.5x2 = 3 dollars

b. six packs at 5$. One= $0.88

c. A case of 24 sodas at $18.5. one soda is going to be  18.5/24 = $0.77

d. Two cases of 24 soda at 18.5 = $1.54

Given the calculations that have been done above, option c at $0.77 is the cheapest. It would require them to send the less money in getting sodas that would go round twice for 10 people.

Read more on the economy here: brainly.com/question/1106682

5 0
2 years ago
Other questions:
  • If monopolistic competitors must expect a process of entry and exit like perfectly competitive firms, Group of answer choices
    5·2 answers
  • The team is struggling to agree on the Story point sizing of a new User Story. The Product Owner was previously a related domain
    5·1 answer
  • Cashier's checks are generally required for
    8·1 answer
  • An adequate supply of complements to a product results in: a. more customers opting for the product. b. higher switching costs.
    5·1 answer
  • A good system of internal controls requires that the physical custody of assets be separated from the accounting for those asset
    8·1 answer
  • At 4 percent inflation, how much time will it take for prices to double?
    13·2 answers
  • When a swimming park owner charges $4.00 for admission, there is an average attendance of 100 people. For every $0.20 increase i
    8·1 answer
  • While developing a new product, in the product development stage, the first versions of products are used in further consumer te
    10·1 answer
  • Deliverables:______.
    14·1 answer
  • Lower-level managers are empowered to make decisions in a ______ organization, which can ________ motivation and job satisfactio
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!