Which one of the following is a possible sign of poor listening?

Lasley Cash, Ltd. operates a chain of exclusive ski hat boutiques in the western United States. The stores purchase several hat

yKpoI14uk [10]

Answer:

CMR: 52% --> each dollar of sales generates 52 cent of contribution

VCR: 48% --> 48 cent per dollar of sales are cost

BEPu: 10,000 units will pay up the cost to purchasethis units and the fixed cost for the business.

BEPs: $ 250,000 in sales pay up both, fixed and varible operating cost.

Explanation:

selling price per hat: $ 25

variable cost per hat: $ 12

Contribution per unit $ 13

Contribution Ratio:

13/25 = 0.52

Variable cost Ratio:

12/25 = 0.48

Fixed cost: 130,000

Break even point:

$\frac{Fixed\:Cost}{Contribution \:Margin \:Ratio} = Break\: Even\: Point_{dollars}$

$\frac{130,000}{0.52} = Break\: Even\: Point_{dollars}$

dollars of sales BEP: 250,000

$\frac{Fixed\:Cost}{Contribution \:Margin} = Break\: Even\: Point_{units}$

$\frac{130,000}{13} = Break\: Even\: Point_{units}$

units sold to pay up variable and fixed cost: 10,000

4 0

3 years ago

A store has 5 years remaining on its lease in a mall. Rent is $1, 900 per month, 60 payments remain, and the next payment is due

photoshop1234 [79]

Answer:

a) No, since the present value of new lease is more than old.

b) Detailed information about the explanation is shown below

c) At 39.80% nominal WACC

Explanation:

a

PV of old and new lease terms

Old Cash Flow New Cash Flow

0 0 0 0

1-9 - 1900 1-9 0

10-60 - 1900 10-60 2700

NPER 60 NPER 60

rate 1% rate 1%

PV ($85,414.57) PV ($98,250.36)

PV ( 1%, 60, 1900) PV ( 1%,9,- PV(1%,51, 2700))

Should the new lease be accepted? <u> No, since the present value of new lease is more than old.</u>

b) If the store owner decided to bargain with the mall's owner over the new lease payment, what new lease payment would make the store owner indifferent between the new and the old leases?

For this part pv of old lease should be equal to pv of new lease at t = 9

85414.57 × (1.01)⁹ 93416.657

Nper 51

Rate 1%

New lease amount ( $2,347.26)

PMT (1%, 51,93416.66)

c)

Period Old Lease New Lease Change in lease

0 0 0 0

1-9 -1900 0 -1900

10-60 -1900 -2700 800

-1900

800

3.317% x 12 = 39.80%

IRR(Values 1:60)

The store owner is not sure of the 12% WACC - it could be higher or lower. At what nominal WACC would the store owner be indifferent between the two leases?

At 39.80% nominal WACC

4 0

3 years ago

The developing country of alpha had a rule that none of its factories could be owned by companies from the developed country of

hjlf

<span>When the developing country alpha breaks the rule of factories not being owned by the companies of developed country beta would imply that alpha is in a vulnerable position in its trade. So this means this would be an example of decline in trade and investment barriers.</span>

4 0

4 years ago

How much money does an employee working for a salary of 50,000 per year get paid each month

zhenek [66]

Divide 50,000 by 12 to get 4,166.67

8 0

3 years ago

Read 2 more answers

A tax free municipal bond provides a yield of 3.2%. What is the equivalent taxable yield on the bond given a 35% tax bracket

lutik1710 [3]

Answer:

4.92%

Explanation:

Equivalent taxable yield on the bond = Rate / (1-Tax rate)

= 3.2% / 1 - 0.35

= 0.032 / 0.65

= 0.049230

= 4.9230%

= 4.92%

3 0

4 years ago