Answer:
$289000
Explanation:
Effective Gross Income (EGI): Effective Gross Income is calculated by deducting the Vacancy and collection (V&C) loss from Gross Potential Income (GPI).
First year gross potential income (PGI) is $340,000
Vacancy and collection (V&C) loss is 15% of gross potential income
Therefore, (V&C) allowance = [$340,000 15%]
= $51,000
Calculate Effective Gross Income (EGI) for the first year of operations:
Item
Amount
Potential gross income (PGI)
$340,000
Less: V&C allowance (at 15% of PGI)
($51,000)
Effective Gross Income ( EGI )
$289,000
Hence the EGI is $289,000
Competition has driven the economic profits in the dog grooming business to zero. surya bacha, would be better off leaving the industry for another alternative. This statement is false.
<h3>What is economic profits?</h3>
Economic profit is the difference between implicit costs and accounting profit. Implicit cost is the cost of the next best option that is forgone when one option is chosen over another option. For example, if Surya left his job as an accountant to start his business. If he earns $100,000. His implicit cost would be $100,000.
Economic profit = accounting profit - implicit cost
Accounting profit is the difference between explicit cost and revenue. Explicit cost is the cost that is actually incurred. An example of explicit cost is the wages paid to labor.
To learn more about implicit cost, please check: brainly.com/question/15849018
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Data structures are variables that store data for direct or indirect processing.
Data structures organize information within a computer database so that information can be found and changed easily. When the information is hard to distinguish it becomes cluttered for a company. The data structure being organized allows companies to process information at a much more efficient rate.
Answer:
BEP $274,509.8
Explanation:
Product X sales weight 70%
Product Y sales weight 30%
X CMR 0.60 x 70% sales weight = 0.42
Y CMR 0.30 x 30% sales weight product Y = 0.09
Contribution mix 0.51
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140,000 fixed cost / 0.51 = 274,509.8
Answer:
10.35 %
Explanation:
Using the Capital Asset Pricing Model (CAPM) approach, Allen’s cost of equity is
Cost of Equity = 4.67% + 0.92 x 6.17%
= 10.35 %