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Dvinal [7]
3 years ago
14

Olinick Corporation is considering a project that would require an investment of $324,000 and would last for 8 years. The increm

ental annual revenues and expenses generated by the project during those 8 years would be as follows (Ignore income taxes.): Sales $ 200,000 Variable expenses 27,000 Contribution margin 173,000 Fixed expenses: Salaries 34,000 Rents 47,000 Depreciation 42,000 Total fixed expenses 123,000 Net operating income $ 50,000 The scrap value of the project's assets at the end of the project would be $24,000. The cash inflows occur evenly throughout the year. The payback period of the project is closest to: (
Business
1 answer:
mylen [45]3 years ago
5 0

Answer:

Payback period = 3.5 years

Explanation:

Net income                           $50,000.00

Add: Depreciation expense<u> $42,000.00</u>

Net annual cash inflow     <u>  $92,000.00</u>

Payback period = Initial investment / Annual cash inflows

= $324,000 / $92,000

= 3.5 years

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A strap yk just strap yourself to the buildings roof or use one of the belts you have to but on when indoor rock climbing
8 0
3 years ago
Schlictor company sells cordless razors for $50. Variable costs are 40% of sales and total fixed costs are $40,000. What is the
Nataly [62]

Answer: Schlictor's operating leverage when 2000 units are sold is 3.

The degree of operating leverage is used to calculate the change in operating income with respect to a percentage change in sales.

We can calculate operating leverage of a firm with the help of the following formula:

Degree of operating leverage = \frac{Sales - Variable Costs}{Sales - (Variable costs + Fixed Costs)}

Substituting the values from the question we get

Degree of operating leverage = \frac{(50 * 2000) - (50*0.40*2000)}{[50*2000] - [(50*0.4*2000) + 40000]}

Degree of operating leverage = \frac{100000 - 40000}{[100000] - [(40000) + 40000]}

Degree of operating leverage = \frac{60000}{20000}

Degree of operating leverage = 3

4 0
3 years ago
The level of aggregate supply in the long run is not affected by.
sergejj [24]

Answer:

Long run aggregate supply (LRAS) is a theoretical concept and refers to the output that an economy can produce when using all its factors of production, and hence when operating at full employment. Graphically, it is a vertical curve indicating that, in the long run, output is not affected by changes in the price level.

3 0
2 years ago
Suppose you buy a put option contract on October gold futures with a strike price of $1200 per ounce. Each contract is for the d
lyudmila [28]

Answer:

Strike price of October gold future = $1,200 per ounce

The exercise price = $1,180

<em />

<em>To calculate the amount that will help the investor to decide about the position</em>

Amount added to margin = (Strike price - Future price) * Delivery if each contract

Amount added to margin = ($1,200 - $1,180) * 100

Amount added to margin = $20 * 100

Amount added to margin = $2,000

Therefore, the amount of $2,000 is received. The investor has short position on future contracts to sell 100 ounces of gold in October.

7 0
3 years ago
As a manager, Marcus is very conscious of how his subordinates feel about whether their work outcomes are as expected relative t
Nataly [62]

Answer:

equity

Explanation:

From the question we are informed about, Marcus who is a manager and very conscious of how his subordinates feel about whether their work outcomes are as expected relative to the effort and contributions they put in. This case is an example of the equity theory. Equity theory can be regarded as theory that base give explanation or allows to know if the distribution of particular resources is been fair to both involved relational partners.

To measure, Equity the ratio of contributions/cost is been compared with benefits/rewards outing

each person in consideration.

ratio of inputs to that of outcomes gives the structure of equity in a company.

4 0
3 years ago
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