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Oksi-84 [34.3K]
3 years ago
12

One car rental agency rents a mid dash size car at a daily rate of ​$36.95 plus 36 cents per mile. Another company rents a mid d

ash size car for ​$44.95 plus 26 cents per mile. Find the mileage for which the cost is the same. For what mileage is the cost the​ same?
Business
1 answer:
maw [93]3 years ago
4 0

Answer:

80 miles

Explanation:

Data provided in the question:

Rental of the first agency = $36.95 + 36 cents per mile

or

= $36.95 + $0.36 per mile                   [as $1 = 100 cents ]

Rental of the second agency = $44.95 + 26 cents per mile

or

= $44.95 + $0.26 per mile  

now,

let the mileage be 'x' miles

therefore,

the cost for the first agency will be = $36.95 + ( 0.36 × x )    ............(a)

and,

the cost for the second agency will be = $44.95 + ( $0.26 × x )    ........(b)

for the equal mileage, equating (a) and (b)

$36.95 + ( 0.36 × x ) = $44.95 + ( $0.26 × x )

or

( $0.36 - $0.26 ) × x = $44.95 - $36.95

or

0.1x = 8

or

x = 80 miles

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A firm is considering a project that will generate perpetual cash flows of $50,000 per year beginning next year. The project has
Vesna [10]

Answer:

Present value = $416666.6667 rounded off to $416666.67

Explanation:

To calculate the most the firm could pay for the project, we will need to calculate the present value of the project when discounted at the WACC for the project, which is equal to the WACC for the firm in this case. The cashflows from the project will be perpetual, thus we will use the formula for the present value of perpetuity.

Present value of perpetuity = Cash flow / r

Where,

r is the rate of discount or discount factor which in this case is WACC

Present value = 50000 / 0.12

Present value = $416666.6667 rounded off to $416666.67

5 0
3 years ago
Gross profit is equal to a. sales plus cost of goods sold b. sales less selling expenses c. sales less cost of goods sold d. sal
alexdok [17]

Answer:

sales less cost of goods sold

Explanation:

Gross profit is the profit earned after after deducting the costs of goods sold from revenue

I hope my answer helps you

8 0
3 years ago
Strickland Company owes $202,900 plus $18,600 of accrued interest to Moran State Bank. The debt is a 10-year, 10% note. During 2
Vesnalui [34]

Answer:

a.                     Strickland Company (Debtor)

Date  Account Title and Calculation                   Debit         Credit

          Notes payable                                          $202,900

          Interest payable                                        $18,600

          Accumulated depreciation (Machine)      $218,689

                    Machine                                                             $397,600

                    Gain on disposition of machine                        $7,080

                     (186,000 + 397,000 - 218,680)

                    Gain on debt restructuring                                 $35,500

                    [(202,900 + 18,600) - 186,000]

                       Moran State Bank (Creditor)

Date  Account Title and Calculation          Debit         Credit

         Machine                                             $186,000

         Allowance for Doubtful accounts     $35,000

                Notes receivable                                           $202,900

                 Interest receivable                                        $18,600

b. Gain on machine disposition and the gain on debt restructuring should be reported as an ordinary gain in the income statement.

c.                      Strickland Company (Debtor)

Date  Account Title and explanation         Debit         Credit

         Notes payable                                   $202,900

         Interest payable                                 $18,600

                  Common stock                                             $112,000

                   Additional paid-in-capital                            $74,000

                   Gain on debt restructuring                          $35,500

                       Moran State Bank (Creditor)

Date  Account Title and explanation             Debit         Credit

          Investment Trading                             $186,000

           Allowance for Doubtful accounts      $35,500

                     Notes receivable                                          $202,900

                     Interest receivable                                        $18,600

7 0
3 years ago
As it relates to inventory, a buyer's time expended to prepare the purchase order for more material is considered a(n) ____ cost
OLga [1]

Answer:

"Ordering" is the correct solution.

Explanation:

  • Ordering expenses are incurred in purchasing a new shipment of manufactured goods. This would include expenditures for the attempting to place of a purchase agreement, cost savings for the evaluation including its batches expected to receive, ends up costing for documentary evidence, etc.
  • The cost of ordering correlated negatively with either the cost of transport. This appears to mean because the much more purchases a business location including its providers, the significantly higher the ordering costs will indeed be.
3 0
2 years ago
The following information is available for Rodriguez Industries:
shepuryov [24]

Answer:

$183,200

Explanation:

Given that,

Direct labor = $86,000

Total current manufacturing costs = $381,000

Manufacturing overhead is applied to production:

= 130% of direct labor cost

= 1.30 × $86,000

= $111,800

Total manufacturing costs = Direct material + Direct labor + Manufacturing overhead.

$381,000 = Direct material + $86,000 + $111,800

Direct material = $381,000 - $86,000 - $111,800

                         = $183,200

Therefore, the amount of direct materials used in production is $183,200.

8 0
3 years ago
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