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ss7ja [257]
3 years ago
8

Mr. Hugh Warner is a very cautious businessman. His supplier offers trade credit terms of 3/14, net 95. Mr. Warner never takes t

he discount offered, but he pays his suppliers in 85 days rather than the 95 days allowed so that he is sure the payments are never late. What is Mr. Warner's cost of not taking the cash discount? (Use a 360-day year. Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)
Business
1 answer:
blsea [12.9K]3 years ago
3 0

Answer: 15.68%

Explanation:

Mr. Warner's cost of not taking the cash discount will be calculated as:

= (3%/100% - 3%) × (360/85 - 14)

= (3%/97%) × (360/71)

= 0.0309278 × 5.0704225

= 0.156817

= 15.68%

Mr. Warner's cost of not taking the cash discount is 15.68%

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According to Carl Jung, what are the two main ways that people process information?
nata0808 [166]
The answer is A. Thinking and sensing

The thinking type will rely on their analysis capabilities to process information, and make their decision based on their analysis projection

Meanwhile, the sensing type will rely on their 5 senses to process information, which mean they have to experience it first before they can make their decision
4 0
3 years ago
Why is it difficult for most small business owners to raise the capital needed to start, operate, or expand their ventures?
Andre45 [30]

Answer:

1. It is not easy to get funds for a start up, as many banks do not consider it as a successful decision to provide loan to a start up, as the feasibility of recovery of loan cannot be identified and guaranteed.

2. Venture capitalists also faces the same issue as of bank, also they are large equity investors and tend to invest in even larger project.

3. Private investors do not blindly invest and rather are more cautious then banks or venture capitalists, as because they do not huge funds to invest, and with less amount of investment they need even higher assurance.

4. Public stock is never available for a start up as for public stock issue you need great credibility, and good previous record.

4 0
3 years ago
Suppose that Marie is buying bananas. She decides that she would like to purchase three bananas at the price of $0.25 per banana
dmitriy555 [2]

Answer:

The correct answer is letter "C": marginal thinking.

Explanation:

Marginal Cost of Production is an economic term that refers to the change in production costs resulting in producing one more unit. It is most often used within manufacturers as a means of identifying an optimum production level. The formula to calculate the cost of production is the change in total production cost divided by the change in total quantity produced.

As Marie is analyzing the extra benefit and cost of buying one more banana,  economists would say she is performing "<em>marginal thinking</em>".

6 0
3 years ago
You currently drive 250 miles per week in a car that gets 24 miles per gallon of gas. You are considering buying a new​ fuel-eff
olga_2 [115]

Answer:

It is less expensive to keep your old car.

Explanation:

We have been given that you currently drive 250 miles per week in a car that gets 24 miles per gallon of gas.  

1 year equals 52 weeks.

5 years equals 260 weeks.

\text{Number of miles traveled in 5 years}=260\times 250

\text{Number of miles traveled in 5 years}=65,000

The old car gives a mileage of 24 miles per gallon of gas.

\text{Gallons of gas used by old car}=\frac{65,000}{24}

\text{Gallons of gas used by old car}=2708.33

\text{Cost of gas used by old car}=2708.33\times \$3.50

\text{Cost of gas used by old car}=\$9479.155

\text{Insurance premium for old car for 5 years}=\$400\times 5

\text{Insurance premium for old car for 5 years}=\$2,000

\text{Amount spent on repairs for old car}=\$1500\times 5

\text{Amount spent on repairs for old car}=\$7500

\text{Total cost of using old car for 5 years}=\$7500+\$9479.155+\$2,000

\text{Total cost of using old car for 5 years}=\$18979.155

Therefore, the total of using old car for 5 years is $18979.16.

We are told that new car gives a mileage of 53 miles per gallon.

\text{Gallons of gas used by new car}=\frac{65,000}{53}

\text{Gallons of gas used by new car}=1226.415

\text{Cost of gas used by new car}=\$3.50\times 1226.415

\text{Cost of gas used by new car}=\$4292.45

\text{Insurance premium for new car for 5 years}=\$800\times 5

\text{Insurance premium for new car for 5 years}=\$4,000

\text{Total cost of using new car for 5 years}=\$14,000+\$4292.45+\$4000

\text{Total cost of using new car for 5 years}=\$22292.45

Since the cost of using new car for 5 years is greater than cost of using old car for 5 years, therefore, it is less expensive to keep your old car.

7 0
3 years ago
Read 2 more answers
To minimize finance charges calculated by the daily balance method, when in the billing cycle is it best to make purchases and p
sleet_krkn [62]

Payments should be made early in the billing cycle, and purchases should be made late in the billing cycle.


3 0
2 years ago
Read 2 more answers
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