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almond37 [142]
3 years ago
9

Michael’s is considering a project that has projected sales of 4,200 units ± 5 percent, a sales price per unit of $50 ± 4 percen

t, variable costs per unit of $25 ± 5 percent, and fixed costs per year of $45,000 ± 3 percent. The depreciation expense is $11,000 per year and the tax rate is 33 percent. What is the annual net income under the best case scenario?
Business
1 answer:
julsineya [31]3 years ago
4 0

Answer:

annual net income is $23077.25

Explanation:

Given data:

sales volume = 4200 units

selling price/units $50

variable cost/units $25

fixed cost is $45000

Total sales unit = 4200 + 5\% \times 4200 = 4410 units

selling price/unit = $50 + 4\%\times $50 = $52

variable cost/unit = $25- 5\%\times 25 = $23.75

fixed cost  = 45000 - 3\%\times 45000 = $43650

sales  =4410 \times 52 = $229320.00

variable cost  = 4410 \times 23.75 = 104737.5

difference = 229320 - 104737 = 124583

fixed cost = $43650

depreciation exchange = $11000

so total income prior to tax = 124583 - (43650 + 11000) =$ 69932.5

tax rate is 33%

so total income after tax is = 69932.5 \times .33 = $23077.725

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kolezko [41]

Answer:Please Refer to the explanation section

Explanation:

The question has insufficient information, we are supposed to be studying the diagram to determine outlier countries with poorest international shipping logistics. i have consulted the International Shipping Logistic performance  index 2018 to find poorest countries in terms of international shipping logistics. according to the world bank countries like Zimbabwe, Lesotho , Syrian Arab Leon , Sierra Leon and Niger are some of the poorest countries when incomes to international shipping

Challenges Faced by these countries.

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Countries like Zimbabwe , Niger and Lesotho face great challenges in international shipping logistics because they are land locked. any Political instabilities in the neighbouring countries affect they logistics businesses directly because the need entry to other countries to transport goods

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Countries like Syrian Arab Republic, Somalia and Sierra Leon suffer from Political instability which makes it difficult for the to trade with other countries.

3 0
3 years ago
How might the inability to provide fringe benefits affect a sole proprietors ability to run a business
Reika [66]
The inability of sole proprietors to provide fringe benefits to their employees can affect the service rendered to customers. Without fringe benefits, the employer will not be able to attract quality applicants for his business. He may have to settle for less qualified staff who may not be able to provide clients with excellent service.
4 0
3 years ago
A small business invests $9,900 in equipment to produce a product. Each unit of the product costs $0.65 to produce and is sold f
Lelechka [254]

Answer:

To break even the company must sell

Explanation:

The position at which the company is at no profit and loss position then it is said that the company is at breakeven position.

Break-even position can be found from the following position:

Breakeven position = Fixed cost /  contribution per unit

The fixed cost here is initial investment which is $9900 and the contribution can be found by taking the difference between selling price per unit and variable cost per unit. The contribution per unit is $0.55 per unit ($1.2 - $0.65). By putting values in the above equation we have:

Breakeven position = $9900 / $0.55 per unit = 18000 Units

So 18000 units are required to sell to reach at a no profit no loss position.

3 0
2 years ago
Suppose that three firms make up the entire tire manufacturing industry. One has a 40% market share, and the other two have a 30
masha68 [24]

Answer:

3400

increase

Explanation:

the Herfindahl index is used to calculate the concentration of firms in an industry

The HHI is calculated by squaring the market share of each firm in the industry.

40² + 30² + 30² = 3400

If one of the firms leaves the industry, the industry becomes more concentrated and the HHI index would increase

5 0
3 years ago
Martha is looking into investing a portion of her recent bonus into the stock market. While researching different companies, she
nata0808 [166]

Answer:

Martha

Based on the data and assuming these trends continue,

Investment in Handy Prosthetics is preferred as it would give Martha a stable long-term investment.

Explanation:

a) Data:

                                                          Handy         El Lobo Malo

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Standard deviation of stock prices = $1.05            $9.82

b) The above standard deviations measure the spread of the stock prices over their daily stock closing prices in one year.  The Handy Prosthetics' stock does not fluctuate as much as the El Lobo Malo's stock.  This reduced fluctuation in prices makes it a more stable investment than El Lobo Malo's stock.  Therefore, Martha should prefer the Handy's stock to the El Lobo Malo's stock.

6 0
3 years ago
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