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vladimir1956 [14]
3 years ago
5

Investors put up $520,000 to construct a building and purchase all the equipment for a new restaurant. The investors expect to e

arn a minimum return of 10 percent on their investment. The restaurant is open 52 weeks per year and serves 900 meals per week. The fixed costs are spread over the 52 weeks (i.e. prorated weekly). Included in the fixed costs is the 10% return to the investors and $1,000 per week in other fixed costs. Variable costs include $1,000 in weekly wages and $600 per week for materials, electricity, etc. The restaurant charges $5 on average per meal.Total cost per week isA.$2,000.B. $1,000.C. $3,600.D. $1,600.
Business
1 answer:
olasank [31]3 years ago
5 0

Total cost per week = $3600

The correct option is <u>C.$3,600</u>.

<u>Explanation</u>:

<em><u>Given</u></em>:

Cost for constructing and purchasing the equipment for restaurant = $520,000

Minimum return = 10% of investment

Restaurant is opened = 52 weeks per year

No. of meals = 900 meals/per week

Cost of meal = $5

Expense for material and electricity= $600

Expense for weekly wages = $1000

Fixed cost per week = ([520,000(.10)]/52) + 1000 = 2000

Variable cost = 1000 + 600 = 1600

Total cost = Fixed cost per week + Variable cost

                  = 2000+1600 = 3600.

Total cost per week = $3600

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grin007 [14]

Answer: $338712.36

Explanation:

Given the following :

APR = 6.35% = 0.0635

Monthly payment = $1800

Cost of home = $340,000

Period (t) = 420

Monthly rate = 0.0635 / 12

Amount paid on loan = PV of monthly payment :

PMT(1 - (1 / (1 + r)^t)) / r

1800[(1 - (1 / (1 + 0.0635/12)^420)) / r]

1800[ (1 - (1 /9.1764488)) / r

1800[ 1 - 0.1089746] / (0.0635 / 12)

1800 [168.38275]

= $303088.95

Hence, amount yet to pay :

$340,000 - $303088.95 = $36911.05

Hence, balloon payment :

36911.05( 1 + r)^t

36911.05(1 + 0.0635/12)^420

36911.05(1 + 0.0052916)^420

36911.05(1.0052916)^420

36911.05 × 9.1764488

= $338712.36

8 0
3 years ago
Farrar Corporation has two major business segments-Consumer and Commercial. Data for the segment and for the company for March a
Aneli [31]

Answer:

The answer is "\$ 137,000"

Explanation:

Please find the complete question in the attached file.

Commercial sector contribution margin

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Margin of Contributions = Revenue Sales - Fixed expenses

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7 0
3 years ago
Question 1 (10 points) You are faced with a problem. You want to go to the movies with your friends and see the latest action fl
Ray Of Light [21]

The dilemma is to decide whether to ignore mother's orders or comply with them in this situation.

<h3>What is Opportunity Cost?</h3>

Opportunity Cost refers to the losses incurred on leaving the other possible alternatives in the decision making and choosing the one. It is the value of the best alternative choose in the process of the decision making.

In the Above situation,the individual would enjoy with friends if he goes to watch the movie However it can lead to trouble with his mother.

However, if individual does cleaning of the lawn; the price would be the fun you would have to forgo.

The best course of action would be to obey your mother because the consequences of doing otherwise are much worse.

Learn more about Opportunity Cost here:

brainly.com/question/12121515

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7 0
1 year ago
Swansea Finishing produces and sells a decorative pillow for $100.00 per unit. In the first month of operation, 2,000 units were
Cloud [144]

Answer:

$41,400

Explanation:

Swansea Finishing

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Variable manufacturing costs $23.00

Units sold $1,800

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$23.00 × 1,800 units

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6 0
3 years ago
Which type of light is primarily used as a light source in stores?
gregori [183]

Answer:

artificial light

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Most stores, no matter the type of the merchandise they sell, use artificial light. Although natural light (sun) is always present, it is not enough to cater to the lighting needs of a business.

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Businesses use LED or other sorts of artificial lighting in order to make the shopping experience pleasant.

3 0
3 years ago
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