1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
boyakko [2]
3 years ago
11

Y Toys is planning a 30,000 square foot expansion to their manufacturing facility to prepare for the introduction of their Barne

y Babies line of stuffed animals. They will start construction now on the $700000 building and in 3 years hope to pay for it. What is the annual amount of toy sales revenue needed to pay for the building?
Business
1 answer:
LiRa [457]3 years ago
7 0

Answer:

The question is not complete,it is missing the rate if return on investment of

Y Toys is planning a 30,000 square foot expansion to their manufacturing facility to prepare for the introduction of their Barney Babies line of stuffed animals. They will  start construction on the $700,000 building in 3 years from now. What is the annual amount of toy sales revenue needed to pay for the building? Assume that Y Toys uses an interest rate of 19% per year. Show all steps in Excel.

The amount of sales required each year is $194,115.53 which is the same as the yearly savings to be made.

Explanation:

In arriving at the answer,I used PMT formula is excel.The PMT formula is given as PMT(rate,nper,,-fv) where r is the rate of return on yearly basis,nper is the period of investment and fv is future value of investment given as $700000 here, the amount payable on the facility in three years.

It is important to note that double commas are placed in the formula before pv and that the pv has a negative sign.

Kindly find attached spreadsheet for detailed computation on the PMT.

Download xlsx
You might be interested in
In order to achieve a competitive advantage, Coastal Haven Hotels, a chain of luxury beach resorts, wants to increase its market
Anna11 [10]

Answer:

The correct answer is b. Take advantage of economies of scale and scope by opening a chain of lower priced economy hotels that leverage the Coastal Haven brand image.

Explanation:

The economy of scale refers to the power that a company has when it reaches an optimum level of production to produce more at a lower cost, that is, as production in a company grows, its costs per unit produced are reduced. The more it produces, the less it costs to produce each unit.

In other words, it means that if in a production function the quantity of all inputs used is increased by one percentage, the output produced can increase by that same percentage or increase by greater or lesser amount than the same percentage. If it increases by the same percentage, we would be faced with constant economies of scale, if it were in more, they would be growing economies of scale, if it were in less, in decreasing economies of scale.

In microeconomics, economy of scale is understood as the advantages in terms of costs that a company obtains thanks to the expansion and good synergies that it has applied to its competitive environment .

The concept of "economies of scale" serves for the long term, and refers to reductions in unit cost as the size of an installation and the levels of input utilization increase. The usual sources of economies of scale are the inventory (large-scale purchase of materials through long-term contracts), management and logistics (increasing the specialization of managers), financial (obtaining lower interest costs in bank financing), marketing and technology (benefiting of the scale yields in the production function).

8 0
2 years ago
The term inflation is used to describe a situation in which
Alex73 [517]

Answer: The correct answer is Choice A.

Explanation: The term inflation is used to describe a situation in what the overall level of prices in the economy is increasing.

The measure of inflation is the Inflation Rate. This is the annualized percentage change in a general price index (usually the consumer price index) over time.

3 0
3 years ago
Federal Reserve Banks directly affect the national economy by:
liubo4ka [24]
Increasing and decreasing money supply
3 0
3 years ago
Read 2 more answers
Global Corporation had 58,000 shares of $20 par value common stock outstanding on July 1. Later that day the board of directors
wolverine [178]

Answer:

Jul-01

Dr Retained Earnings $324,800

Cr Common stock dividend distributable $232,000

Cr Paid-in capital in excess of par value - Common stock 92,800

Explanation:

Preparation of the journal entry to record the dividend declaration is:

Jul-01

Dr Retained Earnings $324,800

(58,000 shares x 20% x $28)

Cr Common stock dividend distributable $232,000

(58,000 shares x 20% x $20)

Cr Paid-in capital in excess of par value - Common stock 92,800

(58,000 shares x 20% x $8)

8 0
3 years ago
The chefs at Lorifusion, a continental restaurant, are given the freedom to try out new ways of presenting their dishes. This he
REY [17]

Answer:

The answer is: A) A creative work environment

Explanation:

Creative working environments usually enable employees to spend time creating different products, being unpredictable, testing different ideas, making mistakes, and innovating.

It's not easy for management to create such working environments, specially when innovation is not linear, is unpredictable and may be inefficient sometimes. But at the long run, innovative companies will tend to dominate their markets.

7 0
3 years ago
Other questions:
  • Project P requires an investment of 4000 at time 0. The investment pays 2000 at time 1 and 4000 at time 2. Project Q requires an
    13·1 answer
  • Phoenix, a popular coffee shop chain in North America, recently opened 400 stores to cater to its rapidly increasing number of p
    8·1 answer
  • Provide an example of software that may be used to maintain financial records, and identify advantages of using it over maintain
    14·1 answer
  • Textra Plastics produces parts for a variety of small machine manufacturers. Most products go through two operations, molding an
    6·1 answer
  • The placement of proof-point information on product packaging is part of which of the four ps?
    15·1 answer
  • Assume that the new television costs $500.
    13·1 answer
  • At the beginning of the year, Oak Corp. (an S corporation) had $50,000 in its AAA, $30,000 of earnings and profits from prior C
    11·1 answer
  • Brendan buys a used car in April 2020 from his neighbor for $20,000. After one month, he loses his job and decides to sell the c
    7·1 answer
  • Explain why the income statement and the statement of cash flows are dated "For the Year Ended December 31, " whereas the balanc
    9·1 answer
  • Under what conditions do you think extraverts make more effective leaders than introverts? What unique abilities of introverts c
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!