Answer: 26.5% increase
Explanation:
Current profit = Sales - Variable costs - fixed costs
= ((32.50 - 16.50) * 360 bears) - 1,420
= $4,340
Sales increase by 20% = 360 * ( 1 + 20%) = 432 bears
New profit;
= ((32.50 - 16.50) * 432 bears) - 1,420
= $5,492
Effect of sales increase = ( 5,492 - 4,340) / 4,340
= 26.5% increase
Answer: Marthas Basis was $78000 and Noahs basis is $110000
Explanation:
Property appreciates over time when valuated every year periodically so they have evaluated the value of the cottage so if martha were to sell it in her times it would have been sold at a price of $78000 cause thats the fair market value of the cottage so now for noah if he decides to sell the cottage it will be valued at $110000 so he will have to sell it at that market price or above that market price to profit, the fair market value values a property on the basis of its value inclusive of inflation that have affected prices over the years.
Answer:
D. fixed cost
Explanation:
The fixed cost in a business refers to those costs that are independent of the production output in the business. This means that to a large extent, these costs remain constant whether there is a decrease or increase in output and profit in the business.
In the case of Dizzy Amusement Park, the amount paid to each operator is a fixed cost accrued from the business. It is an agreed-upon price that must be paid whether the park records an increase or decrease in visitors. This kind of cost is in the same category as the rent and insurance fees accrued from the business.
Answer:
Paul Hyatt is fully liable for all business debts
Explanation:
Unlimited liability in this scenario, means that Paul Hyatt is fully liable for all business debts. That is because unlimited liability is defined as the full legal responsibility that business owners and partners assume for all business debts, and since Paul Hyatt is a sole proprietor which means that he both owns and runs DeepCleans and there is no legal distinction between him and the business entity, then he is fully liable for debts and profits of DeepClean.
Answer:
Re = 15.29%
Explanation:
beta at current debt level:
11.5% = 5% + (beta x 6%)
6.5% = 6%beta
beta = 6.5% / 6 = 1.083
unlevered beta = 1.083 / {1 + [(1 - tax rate) x debt / equity]} = 1.083 / {1 + [(1 - 40%) x 25 / 75]} = 1.083 / 1.2 = 0.9025
cost of levered beta at 60% debt:
0.9025 = beta / {1 + [(1 - 40%) x 60 / 40]}
0.9025 x 1.9 = beta
beta = 1.7148
Re = 5% + (1.7148 x 6%) = 15.29%
