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yawa3891 [41]
3 years ago
12

You own a house that you rent for $1,475 per month. The maintenance expenses on the house average $275 per month. The house cost

$234,000 when you purchased it 4 years ago. A recent appraisal on the house valued it at $256,000. If you sell the house you will incur $20,480 in real estate fees. The annual property taxes are $3,250. You are deciding whether to sell the house or convert it for your own use as a professional office. What value should you place on this house when analyzing the option of using it as a professional office?
Business
1 answer:
lana66690 [7]3 years ago
4 0

Answer: <u>$235,520 </u>is the value that we should place on this house when analyzing the option of using it as a professional office.

Explanation:

Opportunity costs are a vital part and should be considered as the relevant cash flows of the project. All the important data regarding the cash flows must be pondered upon as  it might influence the cash flows while evaluating project decisions.

Here,

Incremental cash flow =  Appraisal on the house - real estate fees

= $256,000 - $20,480

<u>= $235,520</u>

<u />

∴ <u>$235,520 </u>is the value that we should place on this house when analyzing the option of using it as a professional office.

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Farmer Brown’s total cost curve is a. increasing at an increasing rate. b. increasing at a decreasing rate. c. increasing at a c
Rufina [12.5K]

The question is incomplete:

If Farmer Brown plants no seeds on his farm, he gets no harvest. If he plants 1 bag of seeds, he gets 5 bushels of wheat. If he plants 2 bags, he gets 9 bushels. If he plants 3 bags, he gets 12 bushels. A bag of seeds costs $120, and seeds are his only cost.

Farmer Brown's total-cost curve is

a. increasing at an increasing rate.

b. increasing at a decreasing rate.

c. increasing at a constant rate.

d. decreasing.

Answer:

a. increasing at an increasing rate.

Explanation:

To determine the answer, you can create a graph with the information given hich is attached.

You can see that the curve is increasing and because of that you can eliminate option d that is decreasing. Then, you have to consider that increasing at a constant rate would show an straight line which is not the case. Also, increasing at a decreasing rate would show a decreasing slope which is not what you see in the graph. Because of that, the answer is that Farmer Brown’s total cost curve is increasing at an increasing rate because the graphs shows an increasing slope.

8 0
3 years ago
Kenneth Corporation expects to incur indirect overhead costs of $166,400 per month and direct manufacturing costs of $22 per uni
Eva8 [605]

Explanation:

The computation is shown below:

1.  For Predetermined overhead rate

Predetermined overhead rate = (Total estimated manufacturing overhead for 4 months) ÷ (Total number of units)

where,

Total estimated direct manufacturing cost is

= $166,400 × 4 months

= $665,600

And, the total number of units is

= 4,700 units + 8,700 units + 4,300 units + 7,900 units

= 25,600 units

So, the predetermined overhead rate is

= $665,600 ÷ 25,600 units

= $26 per unit

2. Now the allocated cost for each month is shown below:

For January

= 4,700 units × $26

= $122,200

For February

= 8,700 units × $26

= $226,200

For March

= 4,300 units × $26

= $111,800

For April

= 7,900 units × $26

= $205,400

c. Now the total cost per unit is

= $22 + $26

= $48 per unit

5 0
3 years ago
Is it wise for a firm to employ a worker at $20 per hour when another worker does the same job for $10 per hour? It would be a r
grandymaker [24]
The right answer for the question that is being asked and shown above is that: "The government will pay firms to give some workers extra pay to increase the total economy." <span>Is it wise for a firm to employ a worker at $20 per hour when another worker does the same job for $10 per hour? </span>
6 0
3 years ago
Quincy has job offers in Brexington and across the country in Charlieville. The Brexington job would pay a salary of $50,000 per
Otrada [13]

Based on the CPI in both places, the Brexington salary in Charlieville is $30,000.

<h3>Brexington salary in Charlieville </h3>

This can be found by the formula:

= Brexington salary x CPI of Charlieville / CPI of Brexington

Solving gives

= 50,000 x (90 / 150)

= $30,000

In conclusion, option A is correct.

Find out more on CPI at brainly.com/question/512131.

3 0
2 years ago
Loretta went to a store to buy thermal underwear. The underwear had been featured in an advertisement for $24.99 a pair. She was
sweet [91]

Answer:

are there no answer choses maybe stress problem solving

Explanation:

3 0
3 years ago
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