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Liono4ka [1.6K]
3 years ago
5

Whole Grain Bakery purchases an industrial bread machine for $30,000. In addition to the purchase price, the company makes the f

ollowing expenditures: freight, $2,000; installation, $4,000; testing, $1,500; and property tax on the machine for the first year, $600. What is the initial cost of the bread machine?
Business
1 answer:
Andrei [34K]3 years ago
6 0

Answer:

The initial cost of the bread machine is $37,500

Explanation:

Initial cost is the sum of all the expenditure incurred from the purchase of asset to make it usable for the business. It includes purchase price, transportation cost, testing costs etc.

Bread Machine

Purchase price    $30,000

Freight                 $2,000

Installation           $4,000

Testing                <u>$1,500   </u>

Total Initial Cost <u>$37,500</u>

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Sales $ 1,000,000 Net income $ 45,000 Current Assets $ 50,000 Fixed Assets $ 200,000 Total Assets $ 250,000 Current Liabilities
marishachu [46]

Answer:

Profit Margin = income / sales

45,000 / 1,000,000 = 4.5%

Return on Assets = income / assets

45,000 / 250,000 = 18%

Assets turnover = sales / assets

1,000,000 / 250,000 = 4

Earning per share: income / shares outstanding

45,000 / 40,000 = 1.125

Price- Earning ratio = market price / EPS

28 / 1.125 = 24,89

Return on Equity = income / equity*

45,000 / 120,000 = 37.5%

Debt to Equity ratio liab / equity

130,000 / 120,000 = 1,08

Explanation:

*solving for equity

Assets = laib + equity

250,000  =  130,000 + equity

equity = 120,000

5 0
4 years ago
Which of the following illustrates economies of scale , diseconomies of scale , and constant returns to scale ?
Lerok [7]

Answer: d. Liza faces economies of scale; Sam faces diseconomies of scale; Tina faces constant returns to scale

Explanation:

Economies of scale occurs when the increase in production by companies brings about a reduction in cost. Diseconomies of scale is when a rise in production leads to an increase in cost as well. For a constant return to scale, the cost remains the same.

Therefore, the answer will be option D "Liza faces economies of scale; Sam faces diseconomies of scale; Tina faces constant returns to scale".

4 0
3 years ago
Consider an economy described by a specific factors model with an Agricultural and a Manufacturing Sector. The country is open t
ASHA 777 [7]

Answer:

с. The number of workers employed in manufacturing will increase.

Explanation:

When there's a sudden increase of specific capital in a certain sector, in this case, the Manufacturing Sector, the consequences could be an increase in the number of workers employed, since they have more money to invest and to produce more products. If you have more capital it means you're selling more or someone is investing in your sector, which means there's more demand for your products and you need to produce more.

8 0
4 years ago
Which of the following would not affect the outcome of a job interview?
Lostsunrise [7]

Answer:

d. interviewer’s clothing

Explanation:

A prepared talk where one person asks questions and other people answers is called An interview. In other words, an interview is a situation where someone serves as the interviewer and the other as the interviewee.  

A chat that occurs between someone who applied for a job and the spokesperson of a business that is being done to determine whether the candidate is capable of working is called Job interview.  

5 0
3 years ago
Global Market has decided to increase its market share by hiring a marketing rep to visit businesses in the area and invite thei
sleet_krkn [62]

Answer:

Communication strategy

Explanation:

They are using a communication strategy, since they are encouraging the purchase of their products by their own employees and making their brand and services known in different events of their target audience, achieving an increase in sales and with the same benefit

3 0
3 years ago
Read 2 more answers
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