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ss7ja [257]
3 years ago
12

One of the limitations for an entrepreneur of setting up a new business as a franchise is:

Business
1 answer:
11111nata11111 [884]3 years ago
6 0

Answer:

The first and most significant disadvantage of a franchise is the fact that the franchisee has no control of the business or how it is run (or very limited control). The rules of the business are already established and part of the franchise agreement.

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Quantitative Problem: Rosnan Industries' 2013 and 2012 balance sheets and income statements are shown below.
Whitepunk [10]

Answer:

20

Explanation:

8 0
4 years ago
The final topic of the video is about leadership and structure. The speakers promote distributed centers which are similar to th
Alina [70]

Answer:

Correct option is 5.

<u>Developing new competencies</u>

Explanation:

With respect to the worldwide endeavors, the dispersed focuses, as referenced in the inquiry just as the prerequisite of building the gentler aptitudes as far as the administration and social perspectives, make the upside of worldwide extension best spoke to by the case of growing new abilities that are specific to such host nations. Rest of the alternatives become second rate hence when contrasted with creating of new capabilities to get by in the host nations.

4 0
4 years ago
What is the value of an annuity due at the end of 15 years of quarterly deposits of $2,000.00 with terms of 8 percent compounded
elena55 [62]

Explanations:

The formula for future value given

deposit amount, A = 2000

deposit interest,  i = 8% annually = 8/4 = 2%, compounded quarterly

compounding period = quarterly

number of periods, n = 15 years = 4*15 = 60 periods (quarters)

The future value is given by:

FV = A*((1+i)^n-1)/i

= 2000*(1.02^60/0.02)

= $228103.08  (rounded to the nearest cent).

The difference in the answer choice is probably due to the teacher's calculator does not have sufficient accuracy.

4 0
3 years ago
The following costs result from the production and sale of 1,000 drum sets manufactured by Tight Drums Company for the year ende
irga5000 [103]

Answer:

a) Contribution margin is $360,000 and Net income is $101,250.

b) The portion of sales revenue that is not used to pay variable costs is $360,000. That is, the portion of the sales revenue that is left to pay for fixed costs and make a profit is $360,000.

c) The percentage of sales revenue that is left after deducting all the variable costs is 72%. In other words, 72% of sales revenue is left to pay for fixed costs and make a profit.

Explanation:

These can be calculated as follows:

a) Prepare a contribution margin income statement

Tight Drums Company

Contribution margin income statement

For the year ended December 31, 2015

Particulars                                                 $                        $

Sales revenue (1,000 * $500)                                       500,000

<u>Variable costs</u>      

    Plastic for casing                             (17,000)  

    Wages of assembly workers         (82,000)  

    Drum stands                               (26,000)    

    Sales commissions                       <u>  (15,000)  </u>

Total variable cost                                                        <u>  (140,000)  </u>

Contribution margin                                                      360,000

<u>Fixed costs</u>    

    Taxes on factory                              (5,000)  

    Factory maintenance                      (10,000)  

    Factory machinery depreciation    (40,000)      

    Lease of equip. for sales staff        (10,000)  

    Accounting staff salaries                (35,000)  

    Admin. management salaries      <u> (125,000)  </u>

Total Fixed cost                                                             <u> (225.000) </u>

Income before tax                                                            135,000

Tax (135,000 * 25%)                                                    <u>     (33,750)  </u>

Net income                                                                 <u>     101,250   </u>

b) Interpret the contribution margin

Contribution margin is sales revenue minus total variable cost.

From part a, contribution of $360,000 therefore implies that the portion of sales revenue that is not used to pay the variable costs is $360,000.

That is, the portion of the sales revenue that is left to pay for fixed costs and make a profit is $360,000.

c) Interpret the contribution margin ratio

Contribution margin ratio = Contribution margin / Sales revenue = $360,000 / $500,000 = 0.72, or 72%

This implies that 72% of sales revenue is left after deducting all the variable cost. In other words, 72% of sales revenue is left to pay for fixed costs and make a profit.

7 0
3 years ago
Peterson Company estimates that overhead costs for the next year will be $6,520,000 for indirect labor and $550,000 for factory
IgorLugansk [536]

Answer:

$50.50 per machine-hour

Explanation:

The computation of the plant wide overhead rate is shown below:

Plant wide Overhear Rate = Estimated Manufacturing Overhead ÷ Expected Machine-hours

where,

Estimated Manufacturing Overhead = Estimated Indirect Labor + Estimated Factory Utilities

= $6,520,000 + $550,000

=  $7,070,000

And, the expected machine hours is 140,000

So, the plant wide overhead rate is

= $7,070,000 ÷ 140,000 machine hours

= $50.50 per machine-hour

3 0
4 years ago
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