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
Assoli18 [71]
2 years ago
11

Jan's Bakery is considering a merger with Tina's Cookies. Jan's total operating costs of producing services are $300,000 for a s

ales volume of $2 million. Tina's total operating costs of producing services are $75,000 for a sales volume of $600,000. If the two firms merge, calculate the total average cost for the merged firm assuming no synergies.
Business
1 answer:
My name is Ann [436]2 years ago
8 0

Answer:

Jan's Bakery and Tina Cookies

Total Average Cost for the merged firm

= ($300,000 + $75,000)/2

= $187,500

Explanation:

The total average cost for Jan's Bakery and Tina's Cookies is the average of their total operating costs.  This is obtained by adding $300,000 to $75,000 and then dividing by 2.

Though, in practical terms, the presence of some synergies will cut some of the operating costs off, especially such costs as rent, advertising, and some other administrative costs.  Some selling costs will also be eliminated when the merger goes through.

You might be interested in
Wendell’s Donut Shoppe is investigating the purchase of a new $40,000 donut-making machine. The new machine would permit the com
Komok [63]

<u>Solution and Explanation:</u>

<u> Answer:1</u> The total annual cash inflows associated with the new machine for capital budgeting purposes is:

=\$ 5200+(2000 * \$ 2.40 \text { per dozen })

=$10000

<u>Answer:2 </u>The internal rate of return promised by the new machine to the nearest whole percent is:

Particulars  Year  Amount ($)

Cash outflow  0  -40000

Cash inflow  1  10000

                2  10000

               3  10000

                4  10000

               5  10000

              6  10000

IRR   13%

=13% using IRR function in excel.

<u>Answer:3</u> IRR=17%

with salvage value

Particulars  Year  Amount ($)

Cash outflow  0  -40000

Cash inflow  1  10000

                 2  10000

                3  10000

               4  10000

                5  10000

              6  22000

IRR   17%

using IRR function in excel.

5 0
3 years ago
On November 1 of year 0, Jaxon borrowed $38,000 from Bucksnort Savings and Loan for use in his business. In December, Jaxon paid
andreev551 [17]

Answer:

$570

Explanation:

The computation of the interest deduction is shown below:

= Interest paid × number of months ÷ (total number of months in a year)

= $3,420  × 2 months ÷ 12 months

= $570

The interest which is deducted in year 0 under the cash method of accounting is $570

And, the two months is calculated from the November 1 to December 31

We simply apply the interest paid formula.

4 0
3 years ago
What are cash flow financing activities
spin [16.1K]

Answer: Cash flow from financing activities (CFF) is a section of a company's cash flow statement, which shows the net flows of cash that are used to fund the company. Financing activities include transactions involving debt, equity, and dividends.

Explanation:

7 0
3 years ago
In which situation would it be better to use a credit card instead of cash?
bonufazy [111]
Computer, its a larger amount of money to pay so it would be best there

6 0
2 years ago
13. Which of the following is NOT used to describe the state of an economy?
Anni [7]

Answer:C.TINSTAAFL Rating

Explanation:

7 0
3 years ago
Other questions:
  • Assume a nominal interest rate on one-year U.S. Treasury Bills of 2.60% and a real rate of interest of 1.00%. Using the Fisher E
    9·1 answer
  • what a successful entrepreneur's profile is and to determine whether your personal characteristics fit that profile. I
    6·1 answer
  • The Babylonians in sumer used what as a monetary commodity ?
    7·1 answer
  • Fern Corporation manufacturers a single product that has a selling price of $25.00 per unit. Fixed expenses total $50,000 per ye
    8·1 answer
  • Zack enters into a contract to buy Olivia’s home. Per the terms of the contract, Zack must put down a $10,000 earnest money depo
    8·1 answer
  • Homestead Jeans Co. has an annual plant capacity of 65,000 units, and current production is 45,000 units. Monthly fixed costs ar
    12·1 answer
  • What’s the answer???
    9·1 answer
  • Think of a specific insight or idea from a field other than business and discuss how this idea or insight could help you as an e
    7·1 answer
  • The quantity of money demanded rises (that is, there is a movement along the money demand curve) when:
    6·1 answer
  • The minimum selling price that should be acceptable in a special order situation is equal to total Select one: a. production cos
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!