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3 years ago

What does it mean for a company to have a competitive advantage

1 answer:

3 0

When a company has a competitive advantage over others it means they have offered their customers a better value on their products. This could imply they lowered prices or added benefits/services to make higher prices more worthwhile.

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Felice bought a duplex apartment at a cost of $235,000. Her mortgage payments on the property are $1,510 per month, $803 of whic

BartSMP [9]

Answer:

$1,032

Explanation:

Calculation to determine What monthly rent must she charge for each apartment to break even

First step is to calculate the Monthly costs using this formula

Monthly costs = Mortgage payment + Real estate taxes + Insurance costs + Maintenance costs

Let plug in the formula

Monthly costs=$1,510 + ($2,304 / 12) + ($1,452 / 12) + [2 ×($1,446 /12)]

Monthly costs= $1,510 + 192+ 121 + 241

Monthly costs= $2,064

Now let calculate the Break-even monthly rent per apartment

Using this formula

Break-even monthly rent per apartment = Monthly costs / 2

Let plug in the formula

Break-even monthly rent per apartment = $2,064 / 2

Break-even monthly rent per apartment = $1,032

Therefore What monthly rent must she charge for each apartment to break even will be $1,032

3 0

3 years ago

Tanner-UNF Corporation acquired as a long-term investment $200 million of 7% bonds, dated July 1, on July 1, 2018. The market in

likoan [24]

Answer:

1. Prepare the journal entry to record Tanner-UNF’s investment in the bonds on July 1, 2018 and interest on December 31, 2018, at the effective (market) rate.

July 1, investment in UNF bonds

Dr Investment in bonds HTM 200,000,000

Cr Cash 160,000,000

Cr Discount on bonds 40,000,000

December 31, interest revenue from investment in bonds

Dr Cash 7,000,000

Dr Discount on bonds 200,000

Cr Interest revenue 7,200,000

Discount on bonds = ($160,000,000 x 4.5%) - ($200,000,000 x 3.5%) = $7,200,000 - $7,000,000 = $200,000

2. Prepare any additional journal entry necessary for Tanner-UNF to report its investment in the December 31, 2018, balance sheet.

Investment in bonds HTM = $200,000,000 (face value) - $39,800,000 (discount on bonds) = $160,200,000

Changes in the market value of bonds held to maturity are not considered by the company.

4. Suppose Moody's bond rating agency downgraded the risk rating of the bonds motivating Tanner-UNF to sell the investment on January 2, 2019, for $310.0 million. Prepare the journal entry to record the sale.

Dr Cash 150,000,000

Dr Dr Discount on bonds 39,800,000

Dr Loss on investment in bonds HTM 10,200,000

Cr Investment in bonds HTM 200,000,000

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3 years ago

The 10-year bond of Crown Electronics is selling at $960 each. The bond has a coupon rate of 8% and par value of $1,000. The fir

stich3 [128]

Answer: 5.36%

Explanation:

The after-tax cost of debt refers to the interest that is paid on debt which is then less the income tax savings as a result of the deductible interest expenses.

When calculating the after-tax cost of debt, the effective tax rate of a company should be subtracted from 1, after which the difference will be multiplied by the cost of debt. This will therefore be:

= Rate (10,8% × 1000, -960 + 20, 1000) × (1-40%)

=5.36%

6 0

3 years ago

Bramble Corp. makes and sells umbrellas. The company is in the process of preparing its Selling and Administrative Expense Budge

azamat

Answer:

$93,840

Explanation:

Calculation to determine how much is the total budgeted variable selling and administrative expenses for October

October Total budgeted variable selling and administrative expenses=

(0.6 + 1.2 + 0.3 + 0.35) x 7200 +6000 + 39,000 + 7,200 + 24,000

October Total budgeted variable selling and administrative expenses=2.45x 7200 +6000 + 39,000 + 7,200 + 24,000

October Total budgeted variable selling and administrative expenses=$17,640+6000 + 39,000 + 7,200 + 24,000

October Total budgeted variable selling and administrative expenses=$93,840

Therefore the total budgeted variable selling and administrative expenses for October is $93,840

4 0

3 years ago

Perggy's Bakes, a bakery in New Orleans that exclusively sells its confectionery products online, makes its products only when i

horrorfan [7]

Answer:

A)equilibrium price

Explanation:

From the question we are informed about Perggy's Bakes, a bakery in New Orleans that exclusively sells its confectionery products online, makes its products only when it receives an order. The bakery produces the products as per the order and delivers to the customer's homes. It does not produce any excess products. In the given scenario, the price associated with the demand and supply of the products at Perggy's Bakes reflects the equilibrium price. The equilibrium price can be reffered to as only price in which both desires of consumers and that of producers agree, this can be explained as a situation where by quantity demanded is been equal to quantity supplied. The theory stressed that movement of market tends toward this price, it can also be regarded as "market-clearing price"

6 0

3 years ago