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kipiarov [429]
3 years ago
5

Enok, a prospective franchise owner, is looking to keep his monthly costs as low as possible. The franchisor he is checking out

is advertising that royalty payments of 8% of sales could be as high as $300,000 per month. The franchisor is claiming that a franchisee can expect monthly sales to be as high as
(1) $300,000.

(2) $3,125,000.

(3) $3,750,000.

(4) $3,000,000.
Business
1 answer:
slamgirl [31]3 years ago
4 0

Answer:

Option (3) is correct.

Explanation:

Given that,

Enok, a prospective franchise owner,

Royalty payments = 8 percent of sales could be as high as $300,000 per month

Therefore, the franchiser is claiming that a franchisee can expect monthly sales to be as high as:

= $300,000 × (100 ÷ 8)

= $300,000 × 12.5

= $3,750,000

Option (3) is correct.

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Griffin's Goat Farm, Inc., has sales of $796,000, costs of $327,000, depreciation expense of $42,000, interest expense of $34,00
mote1985 [20]

Answer:

The correct answer is $310,470.

Explanation:

According to the scenario, the computation of the given data are as follows:

First we calculate gross profit:

Gross profit = Sales - Cost of Goods Sold = $796,000 - $327,000 = $469,000

Now, Earnings Before Tax = Gross profit - Depreciation - Interest

= $469,000 - $42,000 - $34,000 = $393,000

So, Net income = Earnings Before Tax - Tax percent on EBT

= $393,000 - 21% × $393,000

= $393,000 - $82,530

= $310,470

6 0
3 years ago
Read 2 more answers
After the accounts have been adjusted at April 30, the end of the fiscal year, the following balances were taken from the ledger
Delicious77 [7]

Answer:

April 30

Dr Fees earned 356,500

Cr Income summary356,500

April 30

Dr Income summary 363,600

Cr Wages expense 283,100

Cr Rent expense 56,000

Cr Supplies expense 11,500

Cr Miscellaneous expense 13,000

April 30

Dr Felix Goodwin, capital 7,100

Cr Income summary 7,100

April 3.0

Dr Felix Goodwin, capital 10,500

Cr Felix Goodwin, drawing 10,500

Explanation:

Preparation of the journal entry for the two entries required to close the accounts.

April 30

Dr Fees earned 356,500

Cr Income summary356,500

April 30

Dr Income summary 363,600

(283,100+56,000+11,500+13,000)

Cr Wages expense 283,100

Cr Rent expense 56,000

Cr Supplies expense 11,500

Cr Miscellaneous expense 13,000

April 30

Dr Felix Goodwin, capital 7,100

Cr Income summary 7,100

(363,600-356,500)

April 3.0

Dr Felix Goodwin, capital 10,500

Cr Felix Goodwin, drawing 10,500

5 0
3 years ago
Andy Pearson ran PepsiCo Inc. for nearly 15 years, driving revenues from $1 billion to $8 billion. In 1980, Fortune named him on
lina2011 [118]

Answer:

authoritarian leadership style

Explanation:

In simple words, An authoritarian form of leadership relates to the leadership style  where a leader determines strategies and practices, defines what objectives are to be accomplished, and manages and monitors all operations without substantive involvement by subordinates. An authoritative style of management can be highly successful in some cases, but also has negative consequences on community participants or staff.

3 0
3 years ago
(A) If variances are prorated at the end of the accounting period, an unfavorable direct materials price variance will, when pro
charle [14.2K]

Answer:

Both A and B are correct.

Explanation:

Variance analysis help the business to identify the deviation from their budgeted expenditures. The budget cost or volume is analyzed against the actual expenditure or production volume. Variance can be favorable or unfavorable. An unfavorable material price variance will increase the cost of finished goods.

5 0
3 years ago
Determine which startegic review process element is described below.
Nadusha1986 [10]

Answer:

a. New Strategic Projects

b. Trend Analysis

c. Environmental Scanning

Explanation:

In the statement a, the strategy followed is based on project. This amendment is viewed as a project rather than a business goal. This is one off modification in the system to automate the deposits and have check and balance with ease.

In statement b, the study of interest rates of past 5 years is trend analysis. Past events are analyzed to predict the future.

In statement c, the environmental analysis is done. The democratic candidate will impose higher taxes and republic candidate will lower the taxes, this is considered as environmental scanning.

5 0
3 years ago
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