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aleksley [76]
3 years ago
8

Lilly Company had sales of $355,000, variable costs of $172,000, and direct fixed costs totaling $118,000. The company's operati

ng assets total $80,000, and its required return is 7.40%. How much is residual income
Business
1 answer:
horrorfan [7]3 years ago
8 0

Answer: $59080

Explanation:

Firstly, we need to calculate the net operating income which will be:

= $355000 - $172000 - $118000

= $65000

Then, we calculate the desired income which will be:

= $80000 × 7.40%

= $5920

Residual income will be:

= Net operating Income - Desired income

= $65000 - $5920

= $59080

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7 0
1 year ago
All of the following would be considered closing costs except for: a) A title search b) Cost of repainting the kitchen before mo
otez555 [7]
B/ <span>Cost of repainting the kitchen before moving in</span>
5 0
3 years ago
The title company charges a fee to effect the closing on behalf of the buyer and seller. who bears the cost of this?
horrorfan [7]
To have a fundamental and legal basis, there should always be a purchase contract between the buyer and the seller. This contract contains the agreement and requirements for the purchase to proceed. So in this case, it is always agreed in the contract who pays the cost.
4 0
3 years ago
Javier, a new insurance agent, pays one of his customers to buy his firm's insurance product. Javier explains to the customer th
GaryK [48]

Answer: Bribery.

Explanation:

Bribery is a legal offense which involves giving or demanding for some form of valuables so as to gain favouritism or influence a situation in someone's else favour. Giving or accepting bribes while discharging one's duty as a government official or public office holder is said to be a form of corrupt practices, this could come as a form of gift, money, goods, property, contract award, etc.

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8 0
3 years ago
Quantity Discount: Consider a quantity discount problem where the yearly demand for the product is 1,286 units, the ordering cos
Nataly [62]

Answer:

EOQ = 72 units

Explanation:

Annual demand D = 1,286 units

Ordering cost S = $47

Holding percentage I = 35%

So, 0 - 199 units, the unit cost is $66

EOQ = \sqrt{2DS/PI}

EOQ = \sqrt{(2 * 1286 * 47)/(66*0.35)}

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EOQ = 72.33998613

EOQ = 72 units

3 0
3 years ago
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