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
Kruka [31]
3 years ago
5

McDonald's major distribution partner, The Martin-Brower Company, needs at least $1 million to build a new warehouse in Medicine

Hat two years from today. To date, it has invested $500,000. If it continues to invest $50,000 at the end of every quarter into a fund earning 6% quarterly, will it have enough money to build the warehouse two years from now?Show calculations to support your answer
Business
1 answer:
aleksley [76]3 years ago
5 0

Answer:

No it wont have enough money to build a warehouse in two years.

Explanation:

Firstly we are given that the warehouse is $1 million so the company needs to save this amount of money in two years time.

We know that the company has invested $500000 to date therefore we need to calculate if this $50000 per quarter investment will cover the the other portion for $500000 to meet the warehouse cost of $1 million so we will use the future value annuity formula to calculate this which is :

Fv = C[((1+i)^n -1)/i]

where Fv will be the future value after two years of the $50000 investment

C is the periodic payment of $50000

i is the interest rate per period which is 6% per quarter

n is the number of periods the payment is done here it is 4 x 2years= 8 periods / investments of $50000 that will be done.

thereafter we substitute on the above formula:

Fv = 50000[((1+6%)^8 - 1)/6%]

Fv = $494873.40

then we combine this amount to $500000 to see if it reaches $1 million

$494873.40+ $500000 = $994873.40 which is close to the warehouse cost of $1 million but it does not reach it so the company wont have enough money to purchase the warehouse.

You might be interested in
Which aspect is an essential feature of a joint venture between two companies that come together for global trade?
dolphi86 [110]

Answer:

D.  joint equity ownership

Explanation:

The aspect that is an essential feature of a joint venture would be joint equity ownership. That is because in a joint venture all parties combine all of their resources and share in both the liability and profits of the company. Joint Equity Ownership is the main part of this as it explains how these companies joint their assets in order to make as much profit as possible from their business venture.

4 0
3 years ago
Which of the following is the most important role of marketing in the process selection decision?
IRISSAK [1]

Answer:

(C) Estimating and managing future demand.

Explanation:

Marketing is basically analyzing the demand of the consumers and then supplying it at maximum to get the maximum profit.

This involves some main steps, in which the most essential is the planning, which involves about estimating and managing the demand and then the entire plan of production, supply of commodity.

Thus, the most important step in marketing is to estimate the demand and supply, and then managing the future demand basically.

7 0
3 years ago
Bonita industries sells two types of computer hard drives. the sales mix is 30% (q-drive) and 70% (q-drive plus). q-drive has va
podryga [215]
3300 units of q - drive.

To get the break even units of  q drive you need to get the weighted average contribution margin of the two products

To get it, simply multiply the sales mix ratio to its contribution margin per product and add the two to get the wacm.

Q-drive cm=$120-60=60*30%
Q-drive plus cm= $165-75*70%

the wacm=$81
then divide the fixed cost by the wacm

$891000 / $81=11000 units

then to get the break even units of q-drive simply multiply the sales mix ratio to the break even units

11000 units*30% =3300 units.
5 0
3 years ago
1. Consider an economy with a population of 100,000 households. 60 percent of households reportan annual income of $25,000 ("low
Leona [35]

Answer:

The total income earned by households in this economy is:

$4,700,000,000

Explanation:

a) Data and Calculations:

Household population = 100,000

Low earners = 60% with annual income of $25,000 each

Mid earners = 30% with annual income of $70,000 each

High earners = 10% with annual income of $110,000 each

60% of the population = 60,000 (100,000 * 60%) households

30% of the population = 30,000 (100,000 * 30%)  households

10% of the population = 10,000 (100,000 * 10%)  households

Total income earned by the households:

Low earners = 60,000 * $25,000 =      $1,500,000,000

Mid earners = 30,000 * $70,000 =         2,100,000,000

High earners = 10,000 * $110,000 =        1,100,000,000

Total income earned in the economy $4,700,000,000

3 0
2 years ago
Trapp Company reported net income of $110,000 for 2019 and paid dividends of $60,000 on November 1, 2019. Grape Company owns 15%
MArishka [77]

Answer:

$9,000

Explanation:

Given that,

Trapp Company reported,

Net income for 2019 = $110,000

Dividends paid on November 1, 2019 = $60,000

Grape Company owns 15% of the common stock of Trapp.

Using a fair-value method,

Therefore,

Income earned by Grape company is as follows:

= 15% of the total amount of dividend paid

= 0.15 × $60,000

= $9,000

6 0
3 years ago
Other questions:
  • 1. Use the given th term rules to find given<br>sequence 3n+ 1 (5th and 7th term)​
    6·1 answer
  • You determine that a robot welder is malfunctioning on your assembly line because final inspection has revealed a loose connecti
    13·1 answer
  • A severe freeze has once again damaged the florida orange crop. the impact on the market for oranges will be a leftward shift in
    11·1 answer
  • Summer's current password is SoccerFan!4. How could Summer best
    14·2 answers
  • How can a poor housing market put home buyers in a financially unstable position?
    12·2 answers
  • A company that makes organic fertilizer has supplied the following data: Bags produced and sold 200,000 Sales revenue $ 1,560,00
    13·1 answer
  • Culver owns 80 percent of the common stock of Fowler Company. Culver also purchases some of Fowler's bonds directly from Fowler
    9·1 answer
  • The Raw Materials Inventory account had a balance of $13,463 on January 1. During the month of January, the company had the foll
    10·1 answer
  • Your large retail store sells power tools and construction supplies, and your customer base is made up primarily of home improve
    5·1 answer
  • A monopolist's marginal cost curve shifts down, but the firm's demand curve remains the same. as a result of the fall in margina
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!