Answer:
$1,777,777.78
Explanation:
The computation of the sales volume needs to be achieved is shown below:
Sales volume is
= Fixed cost + after tax income ÷ (contribution margin ratio)
= ($664,000 + $136,000) ÷ (0.45)
= $1,777,777.78
We ignored the income tax rate as there is no need in the computation part
By using the above formula, it can be determined in an easily manner
Answer:
$1,815,000
Explanation:
First we must determine the gross income = $2,000 x 10 units x 12 months = $240,000
minus the vacancy rate = $240,000 x 5% = $12,000
minus the annual expense = $10,200
net income = $240,000 - $12,000 - $10,200 = $217,800
to calculate the maximum amount that the investor should pay we must divide the net income by the expected rate of return = $217,800 / 12% = $1,815,000
When you are calculating a project's price (buying this asset is an investment project), depreciation and debt service are not included in the calculations.
Answer:
would be considered collusion.
Explanation:
Collusion refers to an illegal agreement between two or more businesses that decide to cooperate together by setting prices or production quotas. This businesses should naturally compete against each other, not team up to charge higher fees. Collusion is illegal because it leads to unfair market advantages because they negatively affect competition.
