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azamat
3 years ago
15

New Town Instruments is analyzing a proposed project. The company expects to sell 1,500 units, ±3 percent. The expected variable

cost per unit is $210 and the expected fixed costs are $428,000. Cost estimates are considered accurate within a ±2 percent range. The depreciation expense is $64,000. The sales price is estimated at $647 per unit, ±2 percent. What is the sales revenue under the worst-case scenario?
Business
1 answer:
VMariaS [17]3 years ago
7 0

Answer:

Worst case sales revenue is $ 922,557.30  

Explanation:

The sales revenue under the worst case is the one that price that considers the lowest possible volume of units as well as the lowest sales price per unit.

Lowest volume possible=(1-3%)*1500

                                     =(1-0.03)*1500

                                      =0.97*1500

                                      =1455

Lowest possible price=(1-2%)*$647

                                     =(1-0.02)*$647

                                     =0.98*$647

                                     =$634.06

worst-case revenue=1455*$634.06

                                 =$ 922,557.30  

Sales revenue under the case scenario is  $922,557.30 as shown in the computation above.

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Assume Royal Palm Corp., an equipment distributor, sells a piece of machinery with a list price of $800,000 to Arch Inc. Arch In
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Answer:

a. $720,000

Explanation:

Since in the question, it is given that the equipment is sold at the list price

The list price is $800,000 and the selling percentage is 90%

So, the revenue should be recorded

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Simply we multiplied the list with the selling percentage so that the correct amount can come

3 0
4 years ago
Identify the four major requirements necessary for a free-market system to operate.
g100num [7]

The free market<span> is defined as the system in which the price of goods is agreed upon by consent between sellers and consumers, through the laws of supply and demand.  Their requirements are the existence of free competition, (which in turn requires that among the participants of a commercial transaction there is no coercion, no fraud, or more generally, that all transactions are voluntary), c</span>omplete universal information about the products and their prices, a free medium of exchange with a common currency, reasonable transaction costs,  set of sellers and a set of buyers.

7 0
4 years ago
The financial services department of your company offers a competitive leadership program. After screening and interviewing all
zmey [24]

Answer:

The correct answer is: Formal.  

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Thus, invitation letters to the participants of leadership programs should be written following a <em>formal </em>coding.

5 0
3 years ago
You receive five annual cash flows of $10,000 with the first cash flow being received today and the last cash flow occurring 4 y
ivanzaharov [21]

Answer:

FV= $75,437.02

Explanation:

Giving the following information:

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Cash flow= $10,000

Total number of periods= 10 years

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<u>First, we need to calculate the future value of the 5 cash flows in 5 years using the following formula:</u>

<u></u>

FV= {A*[(1+i)^n-1]}/i

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FV= {10,000*[(1.06^5) - 1]} / 0.06

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7 0
3 years ago
what percentage of loss would a seller in deerfield beach have if he paid $18,000 for a vacant lot, built a home on the lot that
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Add the cost of the lot and the cost of the house together to get the total cost ($163,000). Next, subtract the sales price from the total cost to get the amount of loss ($10,000) he took. Finally, divide the total cost by the loss amount ($10,000 ÷ $163,000).

The definition of cost is to be valued at something or to lose. A loaf of bread costing $3 is an example of a cost. Giving up your freedom in order to grant freedom to another person is an illustration of the cost.

A company's cost is the amount of money it had to spend to create its goods or services. It is calculated as the sum that the business spends to create a specific number of a product. Simply put, it is the cash that a business spends on things like labour, services, raw materials, and other costs.

Learn more about cost here:

brainly.com/question/15135554

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3 0
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