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4 years ago

Question 1 Saved

Business

1 answer:

Nadusha1986 [10]4 years ago

3 0

Answer: Businesses sell goods and services in product markets.

Explanation: Circular flow diagram shows the flow of goods and services from Firms to the Households and Factors of production from the Households to the Firms. The firms money from the sale of those goods and services and the households get factor payment.

Thus, Business are sell goods and services in product markets in a circular flow diagram.

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All of the following are disadvantages of using the average rate of return except:____________.

ad-work [718]

Answer:

c. the average rate of return method includes the entire amount of income earned over the life of the proposal.

Explanation:

the average rate of return is a capital budgeting method.

Average rate of return = Average net income / Average book value

Average book value = (cost of equipment - salvage value) / 2

From the above formula, it can be seen that the entire income earned over the life of the project is used when calculating average rate of return.

the average rate of return method does not consider the timing of the expected cash flows. or use present values unlike the net present value and internal rate of return.

Net income is used instead of expected cash flows when calculating ARR

5 0

3 years ago

A company paid $150,000, plus a 6% commission and $4,000 in closing costs for a property. The property included land appraised a

Oxana [17]

Answer:

Land $81,500; Land Improvements $32,600; Building $48,900

Explanation:

Calculation for What should be the allocation of this property's costs in the company's accounting records

First step is to calculate the total value

Total value= $87,500 + $35,000 + $52,500

Total value= $175,000

Second step

Land appraised = $87,500 ÷ $175,000

Land appraised= 0.50

Land improvement = $35,000 ÷ $175,000

Land improvement = 0.20

Building appraised = $52,500 ÷ $175,000

Building appraised = 0.30

Third step is to calculate the Total Amount

Total Amount= $150,000 + $150,000 × 0.06 + $4,000

Total Amount= $150,000 + $9,000 + $4,000

Total Amount= $163,000

Last step is to calculate the allocation of this property's costs in the company's accounting records

Land appraised = $163,000 × 50%

Land appraised = = $81,500

Land improvement = $163,000 × 20%

Land improvement= $32,600

Building appraised = $163,000 × 30%

Building appraised = $48,900

Therefore What should be the allocation of this property's costs in the company's accounting records is :

Land $81,500; Land Improvements $32,600; Building $48,900

4 0

3 years ago

your experience indicates that offering a discount in your email increases responses by 75% year last email without a discount y

HACTEHA [7]

Answer:

The number of responses if a discount is offered would be 33,250

Explanation:

1. Let's review the information given to us to answer the question correctly:

Number of responses you had without offering discount = 19,000

Percentage of increase if you offer a discount = 75%

2. If you mail the same size list and offer discount how many responses would you expect?

Number of responses if a discount is offered = Number of responses you had without offering discount * (1 + 0.75)

Replacing with the real values, we have:

Number of responses if a discount is offered = 19,000 * 1.75

Number of responses if a discount is offered = 33,250

The number of responses if a discount is offered would be 33,250

3 0

4 years ago

Executives of Studio Recordings, Inc., produced the latest compact disk, the Starshine Sisters Band, titled Starshine/Moonshine.

Alexxandr [17]

Answer:

a) Contribution margin= $6,4

b) break-even point:

in units=76562 cds

in dollars=$869058

c) Net profit= $5910000

d) Q=107813 cds

Explanation:

Variable costs:

CD package and disc $1.25/CD

Songwriters’ royalties $0.35/CD

Recording artists’ royalties $1.00/CD

Total Variable costs= $2,6

Fixed Costs:

Advertising and promotion $275,000

Studio Recordings$215,000

Total fixed costs= $490000

Price=$9

a) contribution margin= Price- variable costs= 9-2,6= $6,4

b) break-even point:

in units=fixed costs/contribution margin=490000/6,4= 76562 cds

in dollars= fixed costs/(contribution to sale ratio)

in dollars= fixed costs/(contribution margin/price)

in dollars= 490000/(6,4/9)= $869058

c) q=1000000

sales= 9000000 (1000000*9)

variable costs= -2600000 (1000000*2,6)

fixed costs= -490000

Net profit= $5910000

d)Profit= 200000 q=?

using the break-even formula

Q=(fixed cost+profit)/contribution margin

Q=690000/6.4=107813 cds

7 0

3 years ago

When you purchase an turn in a store, you may be charged with

bearhunter [10]

Don't know what you're trying to say but all that popped in my head was tax

4 0

3 years ago

Read 2 more answers