Answer:
$37,500
Explanation:
You receive 2% of the sales.
You have to earn $750 to break even, or cover the franchise cost.
So, if we let Sales be "x", we can say:
<u><em>2% of x would be 750</em></u>
What is 2% in decimal?? We divide by 100, so we have:
2% = 2/100 = 0.02
Now, we convert the word equation above to mathematical equation:
0.02 * x = 750
Now, we solve for x, the amount customers have to buy (or sales):
Hence,
Customers would have to buy $37,500 to cover the cost of this fee.
Answer:
Option B (bail-out) is the correct approach.
Explanation:
- For something like a variable annuity, a clause states that even though the investment on either the annuity happens to fall underneath a specified amount, the insured person will make additional withdrawal effects through loss.
- It eliminates the owner from those in the contract unless the transactions do not exceed a sum negotiated upon.
Some other available choices do not apply to the types of situations in question. So that the argument presented above should be appropriate.
Answer:
$53,355.7047
Explanation:
The computation of the estimated cost of the replacement cost is shown below:
Estimated cost = (old cost i.e purchased cost of an equipment ÷ Cost index of that year i.e 2006) × estimated cost index for 2017
= ($30,000 ÷ 149) × 265
= $53,355.7047
We simply applied the above formula so that the estimated cost could come
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