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marshall27 [118]
2 years ago
8

You are thinking about a project to expand your business. In order to start the project, you have to invest $200,000 in new equi

pment and $50,000 in working capital. You have to spend $15,000 for installation and $5,000 for shipping of the equipment. A few months ago, you spent $7,000 in consulting. The marginal tax rate of your company is 34%. What is the initial outlay of this project?
Business
1 answer:
9966 [12]2 years ago
5 0

Answer:

$270,000

Explanation:

The computation of the initial outlay of the project is shown below:

The initial outlay of this project = Purchase Price of the Asset + Installation Costs + Shipping cost + Investment in Working Capital

= $200,000 + $15,000 + $5,000 + $50,000

= $270,000

We simply added the purchased price, installation charges, shipping cost and the investment in working capital so that the initial outlay could come

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Lakeside Inc. produces a product that currently sells for $57.60 per unit. Current production costs per unit include direct mate
Sidana [21]

Answer:

It is convenient to make the changes.

Explanation:

Giving the following information:

Selling price= $57.60 per unit.

Direct materials= $22

Direct labor= $24

Variable overhead= $11.00

Fixed overhead= $11.00.

New costs:

Direct material cost= 22*1.2= $26.4

Direct labor cost= 24*1.2= $28.8

<u>I suppose that the selling price will increase by $40.</u>

To determine whether the changes increase profit or not, we need to calculate the unitary contribution margin per unit for both options:

Contribution margin= selling price - unitary variable cost

Actual Contribution margin:

Contribution margin= 57.6 - (22 - 24 - 11)= 0.6

New contribution margin:

Contribution margin= 97.60 - (26.4 - 28.8 - 11)= $31.4

5 0
2 years ago
Kellie wants to buy an expensive purse from a local accessory store. As a savvy consumer, Kellie wants to find an exact brand at
Deffense [45]

Answer:

An ONLINE TO OFFLINE STRATEGY

Explanation:

An online to offline strategy is a business strategy that is mostly utilized by some organizations to bring customers from the internet and many online platforms to come down to their physical shops and stores and make their purchases. It simply involves the ability to identify potential customers over the internet and other online platforms and then make judicious use of a lot of avenues, ways, and approaches through discounts and the likes to tempt or attract these identified potential buyers to now come over and buy from their stores and physical locations.

Now, Kellie who wants to find and buy the best brand at the right price can only be located and engaged through out her customer journey by an accessory store from the time she begins her research (online) to the time she would now make the actual purchase (offline) only if the store makes use of the ONLINE TO OFFLINE STRATEGY.

4 0
3 years ago
Read 2 more answers
Gideon Company uses the direct write-off method of accounting for uncollectible accounts. On May 3, the Gideon Company wrote off
zloy xaker [14]

Answer and Explanation:

The Journal entry is shown below:-

Bad debts expense Dr, $2,000

          To Accounts receivable-Hopkins $2,000

(Being write off is recorded)

Here we debited the bad debt expenses as it increased the expenses and we credited the accounts receivable as it reduced the assets so that the proper posting could be done  

7 0
3 years ago
What is the purpose of a greenfield investment? to acquire an existing firm in a foreign country. to merge with an existing firm
Stels [109]

According to the Bureau of Economic Analysis (BEA), a greenfield investment is a project “where foreign investors establish a new business or expand an existing business on U.S. soil.”

4 0
3 years ago
Question 12 Which answer illustrates "compound interest"?
Ber [7]

Answer:D

Explanation:

7 0
2 years ago
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