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adelina 88 [10]
3 years ago
8

Rosemont Tennis is planning for the coming year. Investors would like to earn a 13% return on the company’s $23245058 million of

assets. The company primarily incurs fixed costs to maintain the tennis courts. Fixed costs are projected to be $10755370 for the year. About 500,000 court time hours are expected to be played each year. Variable costs are about $5 per hour of court time.The Rosemont Country Club and Tennis Courts has a favorable reputation in the area and therefore, has some control over the price per hour of court time. Using a cost-plus approach, what price should Rosemont Tennis charge for an hour of court time?
Business
1 answer:
JulijaS [17]3 years ago
3 0

Answer:

The price charged per hour should be $32,55

Explanation: The cost-plus approach is based on this formula Price (P) = (Overall cost per unit)*(1 + markup) So we need to get Overall cost per unit and markup. The overall costs is the sum of the fixed cost divided by the total amount of court hours ($10.755.370 / 500.000h = $21,51), plus the variable cost per hour ($5). Then, our total cost is $26,51. The markup is the expected return on assets per hour divided by total costs per hour [($23.245.058 * 13% / 500.000) / $26,51] =  0,228. Then, the markup per hour is 22,8%. Using the cost-plus approach we get: P = 26,51 * (1 + 0,228) = $33,55 per court hour

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$1,653

Explanation:

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to calculate the mileage expense we multiply the amount of qualifying miles times the standard deduction rate = 2,850 miles x $0.58 per mile = $1,653

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Answer: Import restrictions

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There are various types of import restrictions and they are:

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2. Import quota: this is a restriction on the volume of imported goods that would be allowed into the country at a particular period of time or from a particular country.

3. Currency restrictions: this is used to restrict the amount of foreign currency used in the settlement of imported goods.

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If Analog Computers can borrow at 8% annually for three years, what is the effective rate of interest on a $1,000,000 loan where
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Answer:

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effective rate of interest is given aseffective\ interest\ rate = \frac{borrowing\ interest \ rate}{1 -compensating\ balancing \requirement \rate}

borrow interest rate = 8%

compensating rate  =15%

effective interest rate = \frac{8%}{1 -15%}

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Food Security

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