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Vadim26 [7]
3 years ago
11

At best buy they have a 42" TV that sells for $1250 and is on sale 15% and sales tax is 6.5%.What is the final cost?

Business
1 answer:
lys-0071 [83]3 years ago
7 0
First, calculate the discount.

15% of 1250 is 187.5

Then, subtract 187.5 from 1250.
You get 1062.5

Next, to calculate the sales tax. I'm not 100% sure if you're supposed to do this before the discount or after, I'm just assuming after.

Anyway, 

6.5% of 1062.5 is approxamately 69.06.

Add that to 1062.5 to get the final answer of $1131.56
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Answer:

C. Financial risk ratios

Explanation:

Financial risk ratios are calculated to measure the financial risk of the company. It measure the financial capability of an entity. For lending purpose the lender has to ensure that is the borrower able to repay the borrowed amount and interest on it. The lender need to estimate the capability of the borrower for payment of loan back. These ratio care Debt to capital ratio, Coverage ratio etc.  

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3 years ago
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g Suppose that if GSI drops the price on the Glucoscan 3000 immediately, it can increase sales over the next year by 30% to 130,
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Complete Question:

Glucose Scan Incorporated (GSI) currently sells its latest glucose monitor, the Glucoscan 3000, to diabetic patients for $129. GSI is considering lowering the sale price to $99 per unit. The cost of goods sold for each Glucoscan unit is $50, and GSI expects to sell 100,000 units over the next year. The marginal corporate tax rate is 40%. Suppose that if GSI drops the price on the Glucoscan 3000 to $99 immediately, it can increase sales over the next year by 30% to 130,000 units.

Also suppose that for each Glucoscan monitor sold, GSI expects additional sales of $100 per year on glucose testing strips and these strips have a gross profit margin of 75%. These strip sales occur on all monitor sales regardless of the price of the monitor. Including the increase in the sale of testing strips, the incremental impact of this price drop on the firms EBIT is closest to:

Answer:

$720,000

Explanation:

Incremental Earnings Before Interest and Tax Analysis  

Details                                         Current price               Reduced price

Units Sold                                        100,000                         130,000

Unit sales price                            <u>       129          </u>                <u>         99        </u>

Sales Revenue                             $12,900,000                 $12,870,000

Cost of Goods sold at $50            <u>5,000,000</u>                  <u>$6,500,000</u>

Gross Profit                                    $7,900,000                  $6,370,000

G. Profit on Strips sold at $75      <u>$7,500,000</u>                  <u>$9,750,000</u>

Total Gross Profit for the year      $15,400,000                $16,120,000

The Net benefit of this price change is increase of Earnings before interest and tax by $720,000.

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