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
Nuetrik [128]
3 years ago
8

You have been working for home-building companies for a number of years. You enjoy construction work, and now you want to start

your own home-building company that you will run yourself You quit your previous job that had been paying $40,000 per year. You have $40,000 in your savings account that you withdraw to start this company. The savings account had been paying you 5% interest. Because the $40,000 from your savings is not enough to start the company, you also borrow $2,300,000 from the bank. (The bank manager is willing to loan you such a large amount because he knows of your reputation and experience in the home-building industry) You use the money to hire workers and buy the tools, machinery, and raw materials with which you will build houses. The cost per worker is $20,000 per year. In your first year, you plan to hire 48 workers to do the construction work, which means that the annual labor cost of your company will be $960,000 (48 x $20,000), With 48 workers, your company can build seven houses. You must also buy raw materials-land, wood, nails, plasterboard, and so forth. Each house requires $20,000 worth of raw materials. The cost of raw materials for seven houses is $140,000 (7 x $20,000). Finally, the bank charges 6% interest on your loan. The interest cost is $138,000 (6% of$2.300,000). 1.5. What are the total fixed costs for your construction company? A. $960,000 B. $42,000 c. $180,000 D. $140,000 E. $1,280,000
Business
2 answers:
hjlf3 years ago
8 0

Answer:

<u>Correct option is D $140,000.</u>

Explanation:

Fixed cost of production is the unrelated to the level of production which remains constant for any number of units of output produced. This accrues to a firm for paying off its fixed factors. Here the fixed payment is $140,000 for 7 houses.

Gala2k [10]3 years ago
5 0

Answer:

The total fixed costs for the construction company is $960000.

Explanation:

Total fixed costs are those costs that are costs that do not change due to production of a product for example in this case we have a cost of raw materials for building 7 houses which is $140000 which variate with the number of houses built and this cost is a variable cost of building a house. The salary for workers is a fixed cost as no matter how many houses the workers build they will still get their salaries of $20000 per worker per year which is in total $960000 for all the workers in the company. Total fixed costs are those costs that are directly involved with the producing of a product but do not change and which in this case it is the salary of workers as also the interest on the loan will be a constant once off amount and is not directly involved in the production of houses.

You might be interested in
Question. Draw a marginal revenue curve of a perfectly competitive firm and explain why the marginal revenue of a perfectly comp
svp [43]

If AR is constant, MR is equal to AR. Both are indicated by the same horizontal straight line(a situation of perfect competition)

<h3>What is the marginal revenue curve for a perfectly competitive firm?</h3>
  • Marginal revenue for a company with perfect competition is the same as average revenue and pricing.
  • This suggests that at values bigger than the average variable cost, the firm's short-run supply curve is its marginal cost curve.
  • The company closes if the price falls below the average variable cost.

Marginal revenue is the change in total revenue when one more unit of a commodity is sold.

MR= change in TR/change in quantity sold

Average revenue refers to revenue per unit of output.

AR=TR/Q

Relationship between AR and MR:

If AR is constant, MR is equal to AR.

Both are indicated by the same horizontal straight line(a situation of perfect competition)

To learn more about marginal revenue, refer to

brainly.com/question/13444663

#SPJ4

8 0
11 months ago
Type the correct answer in the box. Spell all words correctly.
Solnce55 [7]

Answer:

529

Explanation:

A 529 plan is a plan to encourage savings for future education expenses.  The money saved in a 529 plan is not subject to taxation as long as it will be used for education purposes.

Parents, grandparents, or guardians can open 529 savings account for a child, who will be named as the beneficiary.  The contributor of funds to the account may be eligible for a state tax deduction for contributing to a 529 plan. The gains on the accounts are exempt from tax if they are to be used on education expenses.

5 0
2 years ago
Liam​ O'Kelly is 20 years old and is thinking about buying a term life insurance policy with his wife as the beneficiary. The qu
Rashid [163]

Because the future value of annual premiums deposited in a mutual fund is 755 (F/A, 9%, 45) = $397,023.34, Then, the friend is correct since the mutual fund is roughly three times the sum under the Insurance policy.

<h3>Was Liam's suggestion correct?</h3>

Generally, Premium  payment is mathematically given as

X=60-20

X=45years

Where future value is

755 (F/A, 9%, 45)

In conclusion

755 (F/A, 9%, 45)  = 755 * 525.8587

755 (F/A, 9%, 45) = $397,023.34

Read more about Arithmetic

brainly.com/question/22568180

Complete Question

Liam O'Kelly is 20 years old and is thinking about buying a term life insurance policy with his wife as the beneficiary. The quoted annual premium for Liam is $8.39 per thousand dollars of insurance coverage Because Liam wants a $90,000 policy (which is 2.5 times his annual salary), the annual premium would be $755, with the first payment due immediately (i.e., at age 21). A friend of Liam's suggests that the $755 annual premium should be deposited in a good mutual fund rather than in the insurance policy. "If the mutual fund earns 9% per year, you can become a millionaire by the time you retire at age 65," the friend advises.

3 0
2 years ago
Which loan type allows you borrow up to the cost of attendance, minus other aid you have received?.
nikdorinn [45]

A subsidized loan is such a loan where the borrower is allowed to borrow up to the cost of attendance less any other aids received.

<h3>What is a subsidized loan?</h3>

A type of education or student loan where the amount to be borrowed is determined as per the cost of the student's attendance, which is subtracted from other financial benefits received in this regard, is known as a subsidized loan.

Hence, subsidized loan is explained as above.

Learn more about subsidized loans here:

brainly.com/question/2256061

#SPJ1

4 0
2 years ago
A business process consists of one or moreâ _______, many of which are supported by information systems.
Pani-rosa [81]
The answer is A operations
6 0
3 years ago
Other questions:
  • Elmdale Company has a machine that affixes labels to bottles. The machine has a book value of $80,000 and a remaining useful lif
    12·1 answer
  • Maria is training for a triathlon, a timed race that combines swimming, biking, and running.Consider the following sentence: Bec
    14·1 answer
  • In january, the total number of employees at a factory was reduced by 8%. in july, the demand for the factoryâs product increase
    14·1 answer
  • On December 31, 2021, L Inc. had a $3,500,000 note payable outstanding, due July 31, 2022. L borrowed the money to finance const
    11·1 answer
  • A house is constructed in a neighborhood that is substantially larger than the existing houses. Based on the value principle of
    11·1 answer
  • An ad agency creates two ads for a particular car. One stresses the car's safety and gas mileage; the other simply shows how fun
    8·1 answer
  • Why is it important to be held accountable for your actions?<br> 3 sentences
    14·1 answer
  • The advantages of wireless networks include( select all that apply)
    12·1 answer
  • True or false: A capital gain on a stock is counted as part of the total return whether or not the gain is realized from selling
    11·1 answer
  • Margo insists that her dreams frequently enable her to perceive and predict future events. margo is claiming to possess the powe
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!