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Kisachek [45]
3 years ago
6

It will cost $2,500 to acquire an ice cream cart. Cart sales are expected to be $1,500 a year for three years. After the three y

ears, the cart is expected to be worthless as the expected life of the refrigeration unit is only three years. What is the payback period?
Business
1 answer:
Dvinal [7]3 years ago
3 0

Answer: 1 year and 6 months

Explanation:

The cash flows are as follows,

Year 0 = ($2,500)

Year 1 = $1,500

Year 2 = $1,500

Year 3 = $1,500

Payback period is the time it will take to break even the intial investment (In this question the initial investment is $2,500)

The sum of the cashflows of year1 and year2 is equal to $3,000

which means that the payback period is somewhere bbetween year 1 and year2

1500/3000 = 0.5 year or 6 months

the total payback period is 1 year and 6 months

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iVinArrow [24]
The correct answer is letter B
5 0
3 years ago
Zhao Co. has fixed costs of $286,200. Its single product sells for $163 per unit, and variable costs are $110 per unit. Compute
tia_tia [17]

Answer:

The level of sales in units is 7,400

Explanation:

The computation of the level of sales in units is shown below:

= (Fixed cost + target income) ÷ (Contribution margin per unit)

= ($286,200 + $106,000) ÷ ($163 per unit - $110 per unit)

= $392,200 ÷ $53 per unit

= 7,400 units

The Contribution margin per unit is

= Selling price per unit - variable cost per unit

Henec, the level of sales in units is 7,400

7 0
3 years ago
Internal Environmental Analysis
Wittaler [7]

The analysis that you have been asked to examine is called SWOT Analysis. See the categorization below.

<h3>What is SWOT Analysis?</h3>

This is simply a situational analysis that considers the strengths, weaknesses, opportunities, and threats that a company might face in the execution of its business strategy.

,

Strength

• Adequate Financial Resources

• Proven Management Skills

• Ahead of the Experience Curve

• Diversify into Related Products

• Enter New Markets or Segments

• Proprietary Technology

• Vertical Integration

• Product Innovation Skills

• Well Thought of by Buyers

Weaknesses

• Too Narrow a Product Line

• Unable to Finance Needed Strategy Changes

• Falling Behind in R & D

• Vulnerability to Recession & Business Cycle

• Poor Track Record in Implementing Strategy

• Higher Overall Unit Costs than Competitors

Opportunities

• Complacency Among Rival Firms

• Falling Trade Barriers in Attractive Foreign Markets

• Serve Additional Customer Groups



Threats

• Rising Sales of Substitute Products

• Issues Costly Regulatory Requirements

Learn more about SWOT at;
brainly.com/question/20350382
#SPJ1

6 0
2 years ago
Kaspar Industries expects credit sales for January, February, and March to be $202,100, $264,200, and $319,300, respectively. It
Wittaler [7]

Answer:

January $151,575

February $248,675

March $305,525

Explanation:

The computation of the cash collections is shown below:

January month

= January credit sales × month of sale collection percentage

= $202,100 × 75%

= $151,575

February month

= January credit sales × following month collection percentage + February credit sales  × month of sale collection percentage

= $202,100 × 25% + $264,200 × 75%

= $50,525 + $198,150

= $248,675

March month

= February credit sales × following month collection percentage + February credit sales  × month of sale collection percentage

=  $264,200 × 25%+ $319,300 × 75%

= $66,050 + $239,475

= $305,525

3 0
2 years ago
User add controls to a form
mixas84 [53]
Do you have a question about it?
5 0
3 years ago
Read 2 more answers
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