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
vodka [1.7K]
3 years ago
14

The Unique Bookshelf Company is considering the purchase of a custom delivery van costing approximately $50,000. Using a discoun

t rate of 20%, the present value of future cost savings is estimated at $51,200. To yield the 20% return, the actual cost of the van should not exceed the $50,000 estimate by more than:
Business
1 answer:
masha68 [24]3 years ago
3 0

Answer:

$1,200

Explanation:

Given that

Purchase of a customer delivery van = $50,000

discount rate = 20%

Present value of future cost savings = $51,200

Yield = 20%

Based on the above information, as per the net present value the initial cost of the equipment should not be more than the present value of cash inflows  i.e. $51,200

So the more than amount is

= $51,200 - $50,000

= $1,200

You might be interested in
Explain the monopolist Describe and/or analyze graphically the firm’s profit-maximizing,Break-even, and shut-down conditions Des
Lina20 [59]

Answer:

The overview of the given scenario is described in the explanation segment below.

Explanation:

The monopoly seems to be the owner and manager of the sole business that operates on either the marketplace (Industry).

The monopolist becomes making an extraordinary income. Balance requirements become MC = MR, MC reductions MR from underneath the.

The breakeven point would be where the expense of Average is equivalent to the value (Average Revenue-AR)

Closing down portion would be when the company is unable to cover the AR Cost i.e.

⇒  AR < AVC.

The normal monopoly would be when it has a large competitive edge over all the future entrants as either a barrier to the entrance of just about any new company, which prohibits any new installment including its company into the sector. It may even be attributable to someone's power over manufactured goods or perhaps the possession of environmental assets.

The limits of monopoly power are given below:

  • This power is limited to something like the possibility of competitors.
  • If alternatives are present mostly on the market, it's been difficult to retain the monopoly.
  • Law facilitates the possibility of monopoly power.

7 0
3 years ago
The following balances were taken from the general ledger of Doogie Corporation as of December 31. All balances are normal. Cash
love history [14]

Answer:

Please refer to the attached

Explanation:

Please refer to the attached.

Note that in trial balance Debit side must always be equal to debit side

7 0
3 years ago
Assume that Swiss investors have francs available to invest in securities, and they initially view U.S. and British interest rat
Salsk061 [2.6K]

The increase in US interest rates relative to the British interest rate would cause the Swiss demand for dollars to increase and the dollar will appreciate against the Swiss franc.

<h3>Why would the demand for dollars increase and the dollar appreciate?</h3>

When the interest rates of the US increases relative to that of the Britain, investors would earn a higher rate of return relative to that of Britain. As a result, investors would prefer to invest in the US.

When there is an increase in the demand for the US dollars relative to the Swiss franc, the US dollars would appreciate.

To learn more about interest rates, please check: brainly.com/question/26164549

8 0
1 year ago
Riemer, Inc. has four departments. Information about these departments is listed below. Maintenance is a service department. If
Norma-Jean [14]

Answer:

a. $3,520.

Explanation:

The computation of the amount of maintenance cost allocated to the Cutting Department is given below:

= maintenance cost ÷ total floor space excluding maintenance cost

= $20,000 ÷ 6,250 × 1,100

= $3,520.

hence, the option is A.$3,520.

The 6,250 comes from

= 1,100 + 2,100 +  3,050

= 6,250

8 0
2 years ago
Jane Hernandez owns and operates a women’s clothing shop. Her product mix
natulia [17]

Answer: Our group will suggest strategy of Contraction of product mix

<u>Explanation:</u>

Our group will suggest a contraction of the product mix strategy. As per this strategy, we can eliminate one or more product lines or product items from the product mix. This will contract our product mix. The products like medical uniforms and women jeans which are having no sale and are not profitable now can be eliminated.

A company can target the customer for those products which are still in the product mix.

8 0
2 years ago
Other questions:
  • A company has inventory of 15 units at a cost of $12 each on August 1. On August 5, they purchased 10 units at $13 per unit. On
    12·1 answer
  • What happens to if the price of is expected to increase in the near future?
    11·1 answer
  • ordan Electronics currently produces the shipping containers it uses to deliver the electronics products it sells. The monthly c
    9·1 answer
  • The data below relate to the month of April for Monroe, Inc., which uses a standard cost system and a two-variance analysis of f
    6·1 answer
  • With respect to marketing planning, the type of plan that tends to be very detailed in nature and typically covers a year or les
    9·1 answer
  • The world is facing greater and greater pollution, along with the depletion of natural resources. Every person in every country
    8·1 answer
  • Cost of Goods Sold, Cost of Goods Manufactured Glenville Company has the following information for April: Cost of direct materia
    12·1 answer
  • The following statements regard product differentiation in monopolistic competition. Label the following statements as being eit
    13·1 answer
  • if an investor with no other positions buys 2 dwq jun 45 calls at 3, and he exercises the calls when the stock is trading at 47.
    11·1 answer
  • the bargaining power of suppliers is enhanced under which following market condition? group of answer choices low differentiatio
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!