1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
pishuonlain [190]
3 years ago
8

150-seat restaurant $8,000,000 is needed to construct the restaurant; no additional investment is needed in working capital.

Business
1 answer:
goldenfox [79]3 years ago
3 0

Answer:

The answer is $7400000

Explanation:

Solution

Recall that:

There is  no information is given about per unit cost or sales price hence, a reverse calculation is to be made to find out the projected total revenue.

Now,

The reverse calculation to find sales is computed as follows:

Begin from the expected profit + Tax expenses + Interest Expenses + undistributed expenses + variable cost

Thus,

From the calculation of each term is as stated below:

1. The profit expected = 15% return on their investment. it is to be after tax return, total investment = $8000000,

So,

The Profit expected  = $8000000 *15% = $1200000.

2. The tax xxpenses = 25% that is, it should be 25% on taxable profit which is  decreased from it and then net profit after tax is available,

Thus,

we have net profit after tax we can compute the  taxable profit as = $1200000 / 75% = $1600000.  for example, tax amount on taxable profit = $160000 * 25% = $400000.

3. The Interest Expenses = 5% of borrowed fund from bank,

Now,

The  borrowed fund from bank = $2000000 (8000000-6000000)

The expenses interest = $ 100000 ($2000000*5%)

4. Undistributed Expenses is stated as follows:

The Undistributed expenses are given in the question = $2000000.

5. Variable cost that is the labor cost and cost of food :

From the question it is given that it is 50% of the sales, which means the remaining 50% is the contribution.

Now

The contribution on reverse calculation is  computed as:

Profit +taxes + Interest + fixed expenses

Contribution = 1200000 + 400000 + 100000 + 2000000 = $ 3700000,

Thus,

We say,let the sales be 10 , then variable cost be 50 and contribution is 50, that means variable cost = contribution in this case.

so, in proportional calculation , the variable cost = $3700000 .

Thus

The projected sales = expected profit + Tax expenses + Interest Expenses + undistributed expenses + variable cost

The total revenue projected =$1200000+ $ 400000 + $100000 + $ 2000000 +$ 3700000

Therefore, the total revenue projected = $ 7400000

You might be interested in
Adong's Fishing Products is analyzing the performance of its cash management. On average, the firm holds inventory for 65 days,
tatuchka [14]

Answer:

A. $45

B. $80

C. $8,167

Explanation:

(a) Calculation to determine the firm's cash conversion cycle

Cash conversion cycle=$65 +$15 – $35

Cash conversion cycle=$45

Therefore the firm's cash conversion cycle is $45

(b) Calculation to determine the firm's operating cycle

Operating cycle =$65 +$15

Operating cycle=$80

Therefore the firm's operating cycle is $80

(c) Calculation to determine the daily expenditure and the firm's annual savings if the operating cycle is reduced by 15 days

First step is to calculate the Daily expenditure

Daily expenditure =$1,960,000/360

Daily expenditure=$5,444.44

Now let determine the Annual savings

Annual savings =$5,444.44 *15*0.10

Annual savings=$8,167

Therefore the daily expenditure and the firm's annual savings if the operating cycle is reduced by 15 days will be $8,167

5 0
2 years ago
Identify the type of costs that would be considered incremental cost for a decision to close stores. (You may select more than o
Gemiola [76]

The incremental costs that can be deduced include the cost for materials, overhead, and labor that are associated with the actual closing process.

Incremental cost simply means the total cost that's incurred as a result of an additional unit of product that is being produced.

It's simply calculated by analyzing the additional expenses that were spent by the company. They are the cost for materials, overhead, and labor that are associated with the actual closing process.

Learn more about costs on:

brainly.com/question/24516871

6 0
2 years ago
For a 13-person team, how many extra workers should be hired to meet the labor hours needed without overtime
Paha777 [63]

For a 13-person team, The number of extra workers that should be hired to meet the labor hours needed without overtime is 7.

<h3>What is Labor hours?</h3>

This is a term that connote the total hours of workers that are said to be having or getting an hourly wage and they are the ones who are said to be directly employed on the site of a building, public works project, etc.

Note that "Labor hours" is one that entails hours of work that has been carried out  by workers who have been employed by the general contractor or the subcontractors  that are found to be working on the project.

Learn more about labor hours from

brainly.com/question/24868261

8 0
2 years ago
The following transactions were selected from among those completed by Hailey Retailers in the current year:
natali 33 [55]

The appropriate journal entry for each of these transactions,

Date                         Journal entry                        Debit                    credit

Nov 20                Cash    a/c                                441

                           credit card discount                  9

                         To sales revenue                                                        450

Nov 25        Accounts receivable                      2800

                    To sales receivable                                                   2800

Nov 28        Accounts receivable                 7200

                    To sales receivable                                               7200

Nov 30        Sales return                            600

                To account for receivable                                           600

Dec 06      Cash                                         6468

                  sales discount                         132

                 To accounts receivable                                   6600

Dec 30      Cash                                          2800

                 To accounts receivable                                   2800

Net sales:450+2800+7200-600-132

              = 9718

Examples of transactions are as follows: Paying a provider for offerings rendered or goods introduced. Paying a vendor with cash and a note so one can obtain ownership of assets formerly owned by the seller. Paying an employee for hours worked.

A transaction is a finished settlement between a client and a seller to exchange items, offerings, or monetary property in going back for cash. The term is also commonly utilized in company accounting. In business bookkeeping, this simple definition can get complex.

A cash transaction is the immediate charge of coins for the acquisition of an asset. some market stock transactions are considered cash transactions although the exchange might not settle for some days. A futures agreement isn't always considered a cash transaction.                

Learn more about transactions here brainly.com/question/5007419

#SPJ4

6 0
1 year ago
Suppose there is a product that is being sold in a perfectly competitive market. If the market price of the product falls​, prod
yuradex [85]

Answer:

Decrease; Less

Explanation:

The producer surplus is the difference between the minimum price that a producer is willing to accept for a product and the price he actually receives.  

When the market price of a product falls, the producer surplus will decrease as well.  

The lower market price implies that there will be less area between the supply curve and the market price of the product.

3 0
3 years ago
Other questions:
  • A record of the increases and decreases in a specific asset, liability, equity, revenue, or expense is a(n)________.
    7·1 answer
  • Who is Jake from Statefarm??
    8·2 answers
  • Suppose that a country experiences growth strongly biased toward its export, cloth, Group of answer choices this will tend to im
    9·1 answer
  • DS Unlimited has the following transactions during August. August 6 Purchases 84 handheld game devices on account from GamerGirl
    14·1 answer
  • Without quality, the firm's products: a. can compete effectively on the basis of low price. b. must be exported to developing co
    11·1 answer
  • When is the best time to take an out of state college visit
    13·2 answers
  • If you make a late payment on a 0% interest credit card, you're only responsible for paying the interest from that point on. (pl
    11·2 answers
  • While visiting a coffee shop, you see a poster advertising a concert for a music group you'd love to see. You notice there's an
    12·1 answer
  • Which of the following are true for the scientific method? Select all that apply.
    12·1 answer
  • A seller wants to net $100,000 after paying the broker 5% and paying off his loan balance of $200,000. He will also pay document
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!