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aalyn [17]
3 years ago
15

You are analyzing a project and have developed the following estimates: unit sales = 2,600, price per unit = $109, variable cost

per unit = $67, fixed costs per year = $38,000. The depreciation is $12,000 a year and the tax rate is 34 percent. What effect would the sale of one more unit have on the operating cash flow?
Business
1 answer:
Novay_Z [31]3 years ago
8 0

Answer:

Effect on income= $27.72 increase

Explanation:

Giving the following information:

Selling price per unit = $109

variable cost per unit = $67

Tax rate is 34 percent.

To calculate the effect on income for one more unit sold, we need to use the following formula:

Effect on income= contribution margin*(1-t)

Effect on income= (109 - 67)*(0.66)

Effect on income= $27.72 increase

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Sage Hill Inc. Issues $254,000, 10-year, 10% bonds at 97. Prepare the journal entry to record the sale of these bonds on March 1
Mamont248 [21]

To record final annual interest and bond repayment:

2017

Mar 1

Bonds interest expense       $25,400

Bonds payable                      $254,000

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On March 1, 1997, the date of issuance, the entry is:

1997

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Cash                                        $254,000

          Bonds payable                                  $254,000

On each March 1 for 10 years, beginning March 1, 1997 (ending March 1, 2017), the entry would be (Remember, calculate interest as Principal x Interest Rate x Time)

Mar 1

Bond Interest Expense ($100,000 x 12% x 1)          $25,400

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8 0
4 years ago
Rapid-Built Homes specializes in low-cost prefabricated, modular homes that can be erected in a mat-ter of days anywhere in the
SOVA2 [1]

Answer:

D, are probably not engaged in intense competitive rivalry

Explanation:

A competitive analysis framework or framework of competitive analysis can be said to be an analysis model that is used to examine a competitor market structure. This in turn helps you to properly prepare or structure your market analysis.

There are about 5 competitive analysis frameworks. They include SWOT(strength Weakness Opportunity Threats), Porter's five forces, Strategic group analysis, growth share matrix, perceptual mapping.

In the case of Rapid-Built Homes and ModMod, they are not exactly involved in intense competitive rivalry because while Rapid-Built homes is a developed by real estate speculators, ModMod is a side business for two architecture professors. This means that selling of housing units by Rapid-Builts is the source of main income for the company while for ModMod, is it not the main source of income for the professors.

Cheers

7 0
3 years ago
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7 0
4 years ago
In her spare time, Sharon is the chair for a local nonprofit organization. The project committee is attempting to determine what
maxonik [38]

Answer: (D) Competing

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So, on the basis of the given concept she is using the competing approach to conflict as this type of approach is typically used for making quick decisions for the purpose of resolving various types of problems or issue is an organization. This is also known as the conflicting management style.  

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3 0
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Answer:

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(b)  

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6 0
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