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Anuta_ua [19.1K]
3 years ago
14

Teresa rents her apartment for ​$860 per​ month, utilities not included. When she moved​ in, she paid a ​$700 security deposit u

sing money from her savings account that was paying 3​% interest. Her​ renter's insurance costs her ​$84 per year. What are​ Teresa's total annual costs of​ renting?
Business
2 answers:
Nadusha1986 [10]3 years ago
8 0

Answer:

$10,425

Explanation:

Teresa's annual cost of renting:

  • rent x 12 months = $860 x 12 = $10,320
  • annual renter's insurance = $84
  • <u>implicit costs = lost interests = $700 x 3% = $21</u>

          total $10,425

The $700 she left as security deposit should be returned to her at the end of the lease contract, so only the interest lost is considered a cost.

Sonja [21]3 years ago
7 0

Answer:

$11,125

Explanation:

The total annual cost of renting is the total amount the tenant spends to be able to rent the apartment which includes the annual rent, the security deposit, the interest lost on the money used for the security deposit and the insurance cost.

Annual cost of renting= ($860*12)+$700+($700*3%)+$84

Annual cost of renting= $10,320+$700+$21+$84

Annual cost of renting= $11,125

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On June 1, 2017, Pharoah Company was started with an initial investment in the company of $22,350 cash. Here are the assets, lia
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Answer:

                            Pharaoh Company

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                 For the year ended June 30, 2017  

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Meredith is a passive 30% member of the MNO LLC. She is not a managing member and she does not participate in any activities of
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Which one of the following is an example of systematic risk? Multiple Choice Investors panic causing security prices around the
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3 years ago
The Warren Watch Company sells watches for $21, fixed costs are $180,000, and variable costs are $15 per watch.
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Answer:

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  • 20,000 watches:  $60,000  (Loss)
  • Break-even point = 30,000  units
  • if the selling price rises to 32  = break even points descends to 10,588 units
  • If the selling price rises to $32 but variable costs rises to $26  , the break even point goes back to 30,000units.

Explanation:

Hi, to answer this question we have to apply the next formula:

Profit = Revenue -cost

Where the revenue is equal to the units sold (x) multiplied by the selling price,

R = 21 x  

And cost is equal to the sum of the fixed and variable costs.

C = 15x + 1800

So:

P = 21x-(15x +180,000)

P = x ( 21-15)- 180,000

  • For 5,000 watches:

P = 5000(21-15)-180,000

P = 5000(6) -180,000

P= 30,000-180,000

P=-$150,000  (loss , since is negative )

  • For 20,000 watches:

P = 20,000(6) -180,000

P = 120,000-180,000

P=-$60,000  (Loss)

  • To find the break even point:

R = C

21x = 15x + 180,000

21x-15x =180,000

6 x = 180,000

x = 180,000/6

x =30,000  units

  • if the selling price rises to 32

32x = 15x + 180,000

32x-15x = 180,000

17x =180,000

x = 180,000/17

x = 10,588 units

It descends,

  • If the selling price rises to $32 but variable costs rises to $26  

32x = 26x+180,000

32x-26x = 180,000

6x = 180,000

x = 180,000/6

x =30,000

The break-even point comes back to 30,000 units.

6 0
3 years ago
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