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
gizmo_the_mogwai [7]
3 years ago
9

George Kaplan is considering adding a new crop-dusting plane to his fleet at North Corn Corner, Inc. The new plane will cost $85

,000. He anticipates spending an additional $20,000 immediately after the purchase to modify it for crop-dusting. Kaplan plans to use the plane for five years and then sell it. He estimates that the salvage value will be $20,000. With the addition of the new plane, Kaplan estimates revenue in the first year will increase by 10 percent over last year. Revenue last year was $125,000. Other first-year expenses are also expected to increase. Operating expenses will increase by $20,000, and depreciation expense will increase by $10,500. Kaplan’s marginal tax rate is 40 percent. For capital budgeting purposes, what is the net cost of the plane? Or, stated another way, what is the initial net cash flow?
Business
1 answer:
Yuri [45]3 years ago
7 0

Answer:

The correct answer is $105,000.

Explanation:

According to the scenario, the given data are as follows:

Cost of the plane = $85,000

Modification cost = $20,000

So, we can calculate the net cost of the plane by using following formula:

Net cost of the Plane = Cost of the plane + Modification cost

By putting the value, we get

Net cost of the plane = $85,000 + $20,000

= $105,000

You might be interested in
What is an interest rate usually shown as?
SCORPION-xisa [38]
Percentage, hope that helps
7 0
3 years ago
Roy Company manufactures a product in Departments A and B. Materials are added at the beginning of the process in Department B.
slamgirl [31]

Answer:

Number of equivalent units= 18,000

Explanation:

Giving the following information:

Conversion costs for Department B were 50% complete concerning the 6,000 units in the beginning work in process and 75% complete for the 8,000 units in the ending work in process. A total of 12,000 units were completed and transferred out of Department B during February.

With the information provided, we can calculate the number of equivalent units of the period.

Beginning work in process = 6,000*0.5= 3,000

Units started and completed = 12,000 - 3,000= 9,000

Ending work in process completed= 8,000*0.75= 6,000

Number of equivalent units= 18,000

6 0
3 years ago
What is the norming stage
gogolik [260]
Norming stages known as forming storming and performing psychologist bruce tuckman who created this memorable phase later added a fifth stage.
8 0
3 years ago
Argus Finnian is a calculating, self-centred salesperson. He never engages in relationship marketing. He looks on any sales situ
Korolek [52]

Answer:

c. pre-conventional morality

Explanation:

Preconventional morality is the first stage of moral development according to Kohlberg's model of moral development. It is the stage in which the children decides according to the consequences the actions will bring to them. The consequences which the behavior may is on the primary focus. In the above case, Finnian gives attention to the result before taking any of the steps.

6 0
3 years ago
The following costs were for Optimal View Inc., a contact lens manufacturer: Output Fixed Cost Variable Cost Total Costs 270 $ 5
Anastasy [175]

Answer:

Per unit total cost $49.00

Explanation:

The per unit total cost is as follows;

Particulars     Total Costs    Output

High level     $21,300           420

Low level     $15,300           270

Difference   $6,000            150

Unit variable cost 40 ($6000 ÷ 150)

Fixed cost $4,500 ($21,300 - (420 × 40) )

Total cost at 500 lenses $24,500 ($4,500 + (500*40))

Per unit total cost $49.00 ($24,500 ÷ 500)

8 0
3 years ago
Other questions:
  • Complete the sentences to identify the primary and secondary audience of Lee’s business message.
    13·1 answer
  • A tornado struck the only manufacturing plant of Toledo Farm Implements (TFI) on June 1. All work-in-process inventory was destr
    13·1 answer
  • Pam is in need of cash right now and wants to sell the rights to a $1,000 cash flow that she will receive 5 years from today. If
    8·1 answer
  • An imprest petty cash fund of​ $600 was established for minor disbursements. At the end of the​ month, the fund included petty c
    14·1 answer
  • A table of notes receivable for 2018 follows:
    15·1 answer
  • Alpha Division had the following information: Average operating asset base in Alpha Division $500,000 Operating income in Alpha
    7·1 answer
  • A manager of a large retail firm is interested in knowing what the company's product costs are. Which of the following would be
    13·1 answer
  • Avery Company has two divisions, Polk and Bishop. Polk produces an item that Bishop could use in its production. Bishop currentl
    7·1 answer
  • Lara Technologies is considering a cash outlay of $227,000 for the purchase of land, which it could lease out for $36,150 per ye
    5·1 answer
  • Ok, I actually need a lot of help- 30 points to whoever can
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!