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3 years ago

What kind of information should entrepreneurs gather before investing in a new business?

Business

1 answer:

NeTakaya3 years ago

5 0

Answer:

Financial information such as:

Rate of return

Initial capital needed

Context information such as:

Competitors

Legal Barriers

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The owner of a property creates a deed, leaving the name of the grantee blank, and puts it in a drawer, where it is forgotten fo

bazaltina [42]

Answer:

Because recording a deed as the grantee will allow the listed to legally hold the deed, plus having the physical deed is moreso evident of being grantee, unless the owner of the property has proof of the visitor forging his grantee permit he has no way of disputing it.

Explanation:

7 0

3 years ago

Schweser Satellites Inc. produces satellite earth stations that sell for $95,000 each. The firm's fixed costs, F, are $2.5 milli

AVprozaik [17]

Answer:

Schweser Satellites Inc.

The incremental profit is:

= $845,000

Explanation:

a) Data and Calculations:

Selling price of Satellite Earth Station = $95,000 each

Total sales revenue = $4,750,000 ($95,000 * 50)

Fixed costs, F = $2.5 million

Annual production and sales units = 50 units

Total profits = $500,000

Total contribution = $3 million ($2.5 m + $500,000)

Variable costs = $1,750,000 ($4,750,000 - $3,00,000)

Variable cost per unit = $35,000 ($1,750,000/50)

Assets = $4 million

Equity = $4 million

Additional assets = 4.5 million

Additional fixed operating costs = $380,000

New assets = 8.5 million

Fixed operating costs = $2.88 million

Variable cost reduction per unit = $12,000

New variable cost per unit = $23,000 ($35,000 - $12,000)

Production and sales units = 65 (50 + 15)

New selling price per unit = $88,000

Cost of equity = 16%

Tax rate = 0%

Profit under new arrangements:

Contribution per unit = $65,000 ($88,000 - $23,000)

Total contribution margin = $4,225,000 ($65,000 * 65)

Fixed operating costs = $2,880,000

Net operating profit $1,345,000

Incremental profit = $845,000 ($1,345,000 - $500,000)

4 0

3 years ago

AutoZone and O'Reilly are two competitors in the retail automotive parts industry.

sineoko [7]

Answer:

Gross Profit Margin: 53 % and 54%

Inventory days outstanding: 249 days and 252 days.

Explanation:

Gross Profit Margin = Gross Profit / Sales * 100

Gross profit = Sales - Cost of Goods Sold

Gross Profit :

Year 1 : 10,498,448 - 4,860,309 = 5,638,139

Year 2 : 8,277,782 - 3,804,031 = 4,473,751

GP margin :

Year 1 = 53%

Year 2 = 54%

Days of inventory : Average inventory / Cost of Sales * 365 days

Year 1 : 3,320,864 / 4,860,309 * 365 = 249 days

Year 2 : 2,632,898 / 3,804,031 *365 = 252 days

7 0

3 years ago

Problem 5-30 Graphing; Incremental Analysis; Operating Leverage [LO5-2, LO5-4, LO5-5, LO5-6, LO5-8][The following information ap

WARRIOR [948]

Answer:

Break Even Point

In Units = 2,000 units

In value = $80,000

Explanation:

Break even Point = $\frac{Fixed\ Cost}{Contribution}$

When we use contribution per unit, we get the break even point in units sales.

When we use the contribution margin as a percentage of sales we get break even sales in value.

Contribution per unit = $20

Contribution margin in percentage = $20/$40 = 50%

Therefore, Break even Point in units = $\frac{40,000}{20} = 2,000$

Break even units = 2,000

Break Even Point in value = $\frac{40,000}{0.50} = 80,000$

Sales to be made in value at break even = $80,000

8 0

3 years ago

eBookPrintReferences Check my work Check My Work button is now enabledItem 180Item 180 Ouelette Corporation's relevant range of

telo118 [61]

Answer:

$22,800

Explanation:

Calculation for the total amount of indirect manufacturing cost incurred

First step is to find the fixed manufacturing overhead portion

Fixed manufacturing overhead portion=$3.00 *5000 units

Fixed manufacturing overhead portion =$15,000

Second step is to calculate the indirect manufacturing cost if 6,000 units are produced using this formula

Indirect manufacturing cost =Fixed manufacturing overhead portion

+ Variable portion

Let plug in the formula

Indirect manufacturing cost=$15,000 + ($1.30*6,000 units)

Indirect manufacturing cost=$15,000+$7,800

Indirect manufacturing cost=$22,800

Therefore the total amount of indirect manufacturing cost incurred is closest to $22,800

8 0

3 years ago