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ad-work [718]
3 years ago
15

It will cost $7,500 to acquire a cotton candy cart. Cart sales are expected to be $3,800 a year for four years. After the four y

ears, the cart is expected to be worthless as the expected life of the cotton candy producing machine is only four years. What is the payback period? a. 4.00 years b. 2.00 years c. 1.48 years d. 1.97 years e. 1.67 years
Business
1 answer:
Allushta [10]3 years ago
5 0

Answer:

It will take 1.97 years to payback the machine.

Explanation:

Giving the following information:

It will cost $7,500 to acquire a cotton candy cart. Cart sales are expected to be $3,800 a year for four years.

We need to determine the amount of time required to payback the machine.

Year 1= 3,800 - 7,500= -3,700

Year 2= 3,800 - 3,700= 100

3,700/3,800= 0.97

It will take 1.97 years to payback the machine.

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AirQual Test Corporation provides on-site air quality testing services. The company has provided the following cost formulas and
kherson [118]

Answer:

I used an excel spreadsheet since there is not enough room here. I ordered the given data:

                                               Fixed           Variable           Actual Total

Revenue                                                        $276                $33,130

Technician wages                $8,300                                      $8,150

Mobile lab operating exp.   $5,000              $34                 $9,260

Office expenses                   $2,500               $3                  $2,740

Advertising expenses           $1,570                                      $1,640

Insurance                              $2,850                                     $2,850

Miscellaneous expenses        $970                $2                    $535              

Download pdf
5 0
3 years ago
Another way to achieve the same goals as minimum wage and rent control (without keeping markets from reaching equilibrium levels
LekaFEV [45]
A.) personal income
 with you using your own money nothing deducts or raises money for rent or wage.
8 0
3 years ago
Read 2 more answers
A legal arrangement where two or more people share ownership of a business is called a ______. A. Corporation b. Sole proprietor
liubo4ka [24]

The correct statement is that a legal arrangement where two or more people share ownership of a business is called a partnership. So, the correct option is C.

A partnership may be started by two individuals with an intention to share the profits and losses of such business in a predetermined proportion.

<h3>Partnership Firm </h3>

A partnership firm is a form of business organization where at least two individuals put their resources and carry a legal business.

The individuals of a partnership firm are collectively known as partners, where they tend to share the profits and losses proportionately to their capital invested.

There exists vicarious liability among the partners, which means that all the partners are liable for the acts of one or more partner as per the legal contract.

A partnership firm may be terminated by lapse of time, dispute between the partners, dissolution, insolvency, but has a perpetual succession.

Hence, the correct option is C that legal arrangement where two or more people share ownership of a business is called a <u>partnership. </u>

<u></u>

Learn more about partnership firm here:

brainly.com/question/6346527

6 0
2 years ago
How does Alibaba implement competitive pricing strategy in market?
laila [671]

Answer:

<u>By reducing their prices compare to the price of their competitors.</u>

Explanation:

Note, a <u>competitive pricing strategy</u> refers to a pricing strategy that involves <em>deliberately </em>finding out the prices in which your competitor sells their product and then tailoring yours to be a little lower than theirs, by so doing customers feel motivated to buy from you instead.

For example, Alibaba can go to its competitor, let's say Amazon. and see how sells an iPhone. Then Alibaba can reduce/set its own price benchmark based on their prices.

6 0
2 years ago
Precision Systems manufactures CD burners and currently sells 18,500 units annually to producers of laptop computers. Jay Wilson
hram777 [196]

Answer:

a. What increase in the selling price is necessary to cover the 15 percent increase in direct labor cost and still maintain the current contribution margin ratio of 40 percent?

estimated production costs per unit:

direct materials $10

direct labor $23

overhead $30

total $63

if we want contribution margin to remain at 40%, then selling price = $63 / (1 - 40%) = <u>$105</u>

to verify our answer, contribution margin = $105 - $63 = $42 / $105 = 40%

b. How many units must be sold to maintain the current operating income of $350,000 if the sales price remains at $100 and the 15 percent wage increase goes into effect?

if sales price doesn't change, then contribution margin = $37 (not $40)

units sold to keep profit at $350,000 = ($350,000 + $390,000) / $37 = <u>20,000 units per year</u>

c. Wilson believes that an additional $700,000 of machinery (to be depreciated at 20 percent annually) will increase present capacity (20,000 units) by 25 percent. If all units produced can be sold at the present price of $100 per unit and the wage increase goes into effect, how would the estimated operating income before capacity is increased compare with the estimated operating income after capacity is increased? Prepare schedules of estimated operating income at full capacity before and after the expansion.

working at full capacity, sales price $100 (unchanged) and direct labor costs increasing by 15%

                                          capacity 20,000          capacity 25,000

sales revenue                     $2,000,000                  $2,500,000

direct labor                          $460,000                      $575,000

direct materials                   $200,000                      $250,000

overhead                             $600,000                      $750,000

fixed costs                      <u>     $390,000      </u>          <u>      $670,000       </u>

operating revenue              $350,000                      $255,000

The expansion will result in lower operating profits ($95,000 less) so it should be discarded.

7 0
3 years ago
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