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solniwko [45]
4 years ago
8

In all respects, company a and company b are identical except that company a's costs are mostly variable, whereas company b's co

sts are mostly fixed. when sales increase, which company will tend to realize the greatest increase in profits? explain.
Business
1 answer:
Gala2k [10]4 years ago
5 0
Company B will more than likely realize the greatest increase in profits because they are willing to spend more money. You have a greater chance for profit if you increase how much your willing to gamble with.
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The following are the final values to the data:
ICE Princess25 [194]

Answer:

$3,716.37

Explanation:

Initial investment $70,000 (cost of the equipment)

Depreciation expense per year = (cost- salvage value) / useful life = ($70,000 - $0) / 5 years = $14,000

net cash flows per year (the same for every year):

[(revenues - operating expenses - depreciation expense) x (1 - tax rate)] + depreciation expense = [($30,000 - $11,000 - $14,000) x (1 - 30%)] + $14,000 = $3,500 + $14,000 = $17,500

year                    NCF

0                       -$70,000

1                          $17,500

2                         $17,500

3                         $17,500

4                         $17,500

5                         $17,500

6% discount rate

using a financial calculator, the NPV = -$70,000 + $73,716.37 = $3,716.37

$73,716.37 is the present value of the 5 future cash flows

8 0
4 years ago
On july 1, shady creek resort borrowed $250,000 cash by signing a 10-year, 8% installment note requiring equal payments each jun
Rina8888 [55]

Answer:

debit cash $250,000; credit notes payable $250,000

Explanation:

July 1, journal entries should be:

  • Dr Cash account 250,000
  • Cr Notes Payable account 250,000

Since cash is an asset account and it increases (the company receives money), it should be debited.

Since notes payable is a liability account and it increases, it should be credited.

4 0
3 years ago
Can disposable income be spent and lent
Veseljchak [2.6K]
Yes it can be !!!! Because of
6 0
3 years ago
Marlene works in a manufacturing facility, Carz Parts. Throughout the building there were posters and calendars of a sexually ex
ser-zykov [4K]

Answer:

d. has a hostile work environment.

Explanation:

Based on this scenario, it seems that Carz Parts has a hostile work environment. This is a work environment that is created by a boss or coworker whose actions, communication or behavior make doing your job impossible by altered the terms, conditions, and/or reasonable expectations of a comfortable work environment. Which in this scenario, the sexually explicit posters were put up and/or allowed by the boss, and since the posters make Marlene very uncomfortable which prevents her from doing her job correctly the boss has therefore created a hostile work environment.

4 0
3 years ago
Which of the following is an example of a secured loan?
Masja [62]
B. Mortgage Secured loans are protected by an asset of collateral of some sort. So the answer would be mortgage because the finance company will hold the deed until the loan is paid in full including interest.
6 0
3 years ago
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