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PolarNik [594]
3 years ago
13

The additional dining space will occupy space next to Olaf’s that was recently rented to a tenant. By claiming the space for the

project, the firm will no longer be able to rent the space at $1,000 per month. Kristoff wants to evaluate this project over a four year time period. The after-tax operating profit margin on the renting the space is 30%. If Kristoff wants a 9% APR on Olaf cash flows, what is the present value of this opportunity cost? (rent is paid as the beginning of the month)
Business
1 answer:
Illusion [34]3 years ago
3 0

Answer:

$12,146

Explanation:

The computation of present value of this opportunity cost is shown below:-

Net After tax Operating Profit Per month = Rent space per month × Profit margin on the renting the space percentage

= $1,000 × 30%

= $300

Project is for 4 Years

Total months = 4 × 12

= 48 Months

Interest Rate Per month = 9% ÷ 12

= 0.75%

As per the question the Rent is Received at the start of the month

So Present Value of this opportunity cost = $300 (1 + PVAF (0.75%,47))

= $300 × ( 1 + 39.486)

= $12,145.85

= $12,146

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There will be a higher equilibrium price and lower quantity if _____.
Naddik [55]

Answer:

Supply increase and demand decreases

8 0
3 years ago
Costs of goods sold of a manufacturing represents the costs related to building a product that are expensed when it is sold. to
Anastasy [175]

There are 3 types of Inventory as below:

1) Raw Material Inventory

2)Work in Process Inventory

3)Finished Goods Inventory

Schedule for Work in Process Inventory is as below:

Beginning Balance of Work in Process...................................................................XXX

Direct Materials

Beginning Balance of Direct Materials................................XXX

Add: Purchase of Raw Materials...........................................XXX

Total Raw Materials Available...............................................XXX

Less: Ending Balance of Raw Materials..............................(XXX)

Raw Materials Consumed.....................................................................XXX

Direct Labour...........................................................................................XXX

Manufacturing Costs

Indirect Labour....................................XXX

Factory Repairs...................................XXX

Factory Utility......................................XXX

Total Manufacturing Overhead............................................................XXX

Total Manufacturing Costs....................................................................................XXX

Total Cost of Work in Process..............................................................................XXX

Less: Ending Balance of WIP................................................................................(XXX)

Cost of Goods Manufactured................................................................................XXX

3 0
4 years ago
Gordon Company reports the following information at the current fiscal year end of December 31: Common Stock, $0.10 par value pe
telo118 [61]

Answer:

$0.71

Explanation:

Calculation to determine What was the average selling price for the common stock issued

Using this formula

Common stock issued avarage selling price=

Paid-in Capital in Excess of Par-Common÷Common Stock par value per share

Let plug in the formula

Common stock issued avarage selling price=($600,000+$98,000)/($98,000÷$0.10)

Common stock issued avarage selling price=$698,000/$980,000

Common stock issued avarage selling price=$0.71

Therefore the average selling price for the common stock issued is $0.71

3 0
3 years ago
SBD Phone Company sells its waterproof phone case for $90 per unit. Fixed costs total $162,000, and variable costs are $36 per u
tigry1 [53]

Answer:

6,704 units

Explanation:

The computation of the number of units sold is shown below:

= (Fixed expenses + target profit) ÷ (Contribution margin per unit)  

where,  

Contribution margin per unit = Selling price per unit - Variable expense per unit  

= $90 per unit - $36 per unit

= $54 per unit

So, the number of units sold is

= ($162,000 + $200,000) ÷ ($54 per unit)

= 6,704 units

4 0
3 years ago
Steve's Cider Shack, Inc. just paid a dividend of $8 per share of common stock. The dollar amount of the dividends is expected t
mamaluj [8]

Answer:

Check the following calculation

Explanation:

Current price : D0(1+g)/(Rs-g)

                  8 (1+.02)/(.13-.02)

                  8* 1.02 / .11

                   = $ 74.18 per share

2) Dividend: 8(1+.02) = 8.16

Annual rate of return : [P1- P0+D ]/P0

             [74.18 - 63 + 8.16 ]/63

                19.34/63

                  .3070 or 30.70%

8 0
3 years ago
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