1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Scilla [17]
3 years ago
10

You own a small boutique that sells scented soaps and lotions as well as handmade jewelry. You are considering moving locations

to a higher-traffic area of town. You believe this will increase your contribution margin from $127,000 to $218,000 per year. Rent, however, will increase by $400 per month, and utilities will increase by $150 per month. You will also need to hire two additional employees at a cost of $24,000 each annually.
Should you make the move?

A. Yes, because profit would increase by $84,400 annually.
B. Yes, because profit would increase by $36,400 annually.
C. No, because profit would decrease by $48,000 annually.
D. No, because profit would decrease by $6,600 annually.
Business
1 answer:
Natali [406]3 years ago
8 0

Answer:

The correct answer is B.

Explanation:

Giving the following information:

You believe this will increase your contribution margin from $127,000 to $218,000 per year. Rent, however, will increase by $400 per month, and utilities will increase by $150 per month. You will also need to hire two additional employees for $24,000 each annually.

We need to calculate the effect of moving in the net income of the company:

Effect on income= (218,000 - 127,000) - (400*12) - (150*12) - 24,000*2

Effect on income= $36,400 increase

You might be interested in
Create a conversational but professional tone in letters, e-mail messages, instant messages, and memos by Group of answer choice
egoroff_w [7]

Answer:

Using familiar words, occasional contractions, and pronouns such as you and I.

Explanation:

This is the best strategy in order to create a conversational but professional tone in letters, e-mail messages, instant messages and memos. This strategy suggests the use of familiar words. This will give a personal, relaxed tone to your texts. Moreover, it suggests the use of occasional contractions. Contractions are useful when it comes to making a text less formal and more intimate. Finally, using pronouns such as "you" and "I" gives a tone of closeness, while remaining professional.

4 0
3 years ago
The amount of a company’s sales revenue that remains after subtracting the “cost of goods sold,” a standard accounting measure o
Alborosie

Answer:

you can use both. but not sure.

3 0
3 years ago
Suppose that the market equilibrium price for a medical check-up is $50, in a market in which there is no health insurance. To e
never [62]

Answer:

a. Price ceiling

b. see graph

c. Increases

d. Increases, decreases

Explanation:

a. Price ceiling is the maximum price or ceiling so to speak imposed by government for a particular commodity inorder to relieve purchase burden from the consumers.

b. Take note of the price ceiling in the graph attached.

c. Number of demanded check-ups increases, since they are now more affordable.

d. Consumer surplus increase by $10, while the producer surplus decrease by $10 ($50-$40).

4 0
3 years ago
Industrial Machines needs to purchase a new machine costing $1.25 million. Management is estimating the machine will generate ca
max2010maxim [7]

Answer:

The firm shouldn't purchase the machine because the IRR is less than the required minimum

Explanation:

Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested

IRR can be calculated using a financial calcuator

Cash flow in year 0 = $-1.25 million.

Cash flow in year 1 = $210,000

Cash flow in year 2 to 5 = $350,000

IRR = 8.51%

The firm shouldn't purchase the machine because the IRR is less than the required minimum

To find the IRR using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button and then press the compute button

8 0
3 years ago
Lois has been working as an illustrator in a marketing communications company. She is good at her work and knows how to use diff
Alisiya [41]

Answer:

Intrinsic Rewards

Explanation:

Lois is working in a company where she learns the new styles of artwork and she is content with the growth in the company. This situation is best describes as the Intrinsic rewards, which means those rewards come from the employee. An employee who us intrinsically motivated is working for his or her own satisfaction. And it might value the challenging work the person perceives to be meaningful for the company.

8 0
3 years ago
Other questions:
  • Find the present values of the following cash flow streams. The appropriate interest rate is 7%. (Hint: It is fairly easy to wor
    14·1 answer
  • Food should be stored at least which distance from the floor?
    14·1 answer
  • On February 1, 2021, Strauss-Lombardi issued 9% bonds, dated February 1, with a face amount of $860,000. The bonds sold for $786
    12·1 answer
  • A monopolistically competitive firm chooses A. price, but output is determined by a cartel production quota.B. the price, but co
    14·1 answer
  • The owner of a life insurance policy has decided to surrender the life insurance policy to the insurer. Since inception of the l
    14·1 answer
  • Ivanhoe Choice sells natural supplements to customers with an unconditional sales return if they are not satisfied. The sales re
    13·1 answer
  • You own a bond with a 6 percent coupon rate and a yield to call of 6.90 percent. the bond currently sells for $1,070. if the bon
    5·1 answer
  • Ferrari is well known as a brand of luxury sports cars; accordingly, it has leveraged its brand name to introduce clothing offer
    5·1 answer
  • Differences in net operating income between super-variable and variable costing occur because of the treatment of ______ costs u
    11·1 answer
  • accounting information is if similar items are treated the same way among various companies highlighting similarities and differ
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!