Answer:
rent
Explanation:
The rent expense will be difficult to revise. Usually, the rent amount is contained in a tenancy agreement signed by both the landlord and the tenant. The rent amount does not change until the lease or tenancy agreement expires. Changing the rent amount would require the landlord's consent.
Due to the above reasons, rent is classified as a fixed cost. It remains constant in the short run.
To complete the above question, please see below:
Sub-Prime Loan Company is thinking of opening a new office, and the key data are shown below. The company owns the building that would be used, and it could sell it for $100,000 after taxes if it decides not to open the new office. The equipment for the project would be depreciated by the straight-line method over the project's 3-year life, after which it would be worth nothing and thus it would have a zero salvage value. No change in net operating working capital would be required, and revenues and other operating costs would be constant over the project's 3-year life. What is the project's NPV? (Hint: Cash flows are constant in Years 1-3.)
<span>WACC 10.0% </span>
<span>Opportunity cost $100,000 </span>
<span>Net equipment cost (depreciable basis) $65,000 </span>
<span>Straight-line depreciation rate for equipment 33.333% </span>
<span>Annual sales revenues $123,000 </span>
<span>Annual operating costs (excl. depreciation) $25,000 </span>
<span>Tax rate 35%
</span>
The answer is <span>12,271</span>
Answer:
Economic costs include both explicit costs and implicit costs.
Explanation:
- In economics, costs can be in the form of explicit and implicit as implicit costs are opportunity costs and are opportunities for engaging in business. While the explicit costs are accounting costs which are involved in the production of raw matter, wages etc.
Answer:
50 customers per day
Explanation:
For computing the capacity required customers per day, first, we have to compute the current demand per day which is shown below:
Current demand = Average number of pets per day × estimated percentage
= 74 pets × 60%
= 44.4 per day
Now the capacity required per day would be
= (Current demand per day) ÷ (1 - capacity cushion percentage)
= 44.2 ÷ (1 - 0.12)
= 50.22 per day
