Phil enters into a contract with Quality Resorts, Inc., to work as a chef. Under the plain meaning rule, the meaning of this con
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Answer:
1) NOI = $90,240
2) NOI = 29,250
3) NOI = 133,260
4) NOI = 110,190
Explanation:
<em>The question is incomplete.</em>
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<em>Sales (38,000 units) $342,000 ($9.00 per unit)</em>
<em>Variable expenses $228,000 ($6.00 per unit)</em>
<em>Contribution margin $114,000 ($3.00 per unit)</em>
<em>Fixed expenses $42,000 </em>
<em>Net operating income $72,000</em>
1. What is the revised net operating income if unit sales increase by 16%
If unit sales increase, we can calculate this with a 16% increase in the contribution margin.
2. What is the revised net operating income if the selling price decreases by $1.50 per unit and the number of units sold increases by 25%?
A reduction of $1.50 in price means a reduction of the same amount in the contribution margin per unit (CMu), as the variable expenses stay the same .
Also, the contribution margin increases by 25%, for the increase in units sold (q).
3. What is the revised net operating income if the selling price increases by $1.50 per unit, fixed expenses increase by $6,000, and the number of units sold decreases by 6%?
The selliing price will be added to the contribution margin per unit.
The units sold are increased 6%.
4. What is the revised net operating income if the selling price per unit increases by 20%, variable expenses increase by 30 cents per unit, and the number of units sold decreases by 11%?
The contribution margin per unit, with a increase in price and an increase in variable cost, becomes:
The units sold is now:
Then, the net operating income becomes:
The returns of a capital amount to a compensation rate for depositing the money, to calculate these returns an interest rate is used by which the deposited capital is multiplied, in this case the rate is 4%.
As the money distributed is only the product of interest, then that money is the result of multiplying the capital by the interest rate, to obtain how much money Mr. Jefferson contributed, the reverse process will have to be done.
Answers
let <em>C</em> be the capital, then :
The capital contributed by Mr. Jefferson was <em>$4,262,500</em>