Answer:
$ 896,000.00
Explanation:
September $800,000
October $920,000
November $840,000
December $760,000
Payments for November:
30percent purchase for November: = 30/100 x $ 840,000.00
= $ 252,000.00
70 percent payment for the previous month
=70/100 x $ 920,000.00
= 644,000.00
Total payments = $ 252,000 + $ 644,000.00
=$ 896,000.00
Answer:
The simple rate of return is 37.5%
Explanation:
Simple rate of return is the percentage of return on investment that takes the net annual return cash flow of an investment and compare with initial capital of the investment. It is calculated with this formula:
<u>Total annual return - Depreciation expense</u>
Initial capital outlay
For farmer Joe, the simple rate of return is:
<u>$20,000 + $25,000 + $30,0000 -$0</u> x 100
$200,000
= <u>$75,000</u> x 100
$200,000
= 37.5%
Depreciation expense is assumed to be zero.
Answer:
1. $ 136,500
2. $70000
3. Medical market
Explanation:
1. Calculation to determine How much would the company's profits increase (decrease) if it implemented the advertising campaign in the MEDICAL MARKET
First is to calculate the sales
Sales = (400 000 + 70 000)
Sales = $470 000
Second step is to calculate the profit
Variable cost =$470 000 *65%
Variable cost=$305 500
Contribution =$470 000*35%
Contribution =$164,500
Fixed Expense= $28 000
Profit = $ 136,500
Now let calculate the Difference made by advertisement
Difference = 136500 - 120000
Difference=16500
2. Calculation to determine How much would the company's profits increase (decrease) if it implemented the advertising campaign in the
DENTAL MARKET
vcr Of The Dental market = 50%
Variable cost =50% $260 000
Variable cost = $130 000
Contribution = $130 000
Fixed expenses = $60 000
Profit = $70000
Now let determine difference made by the advertisement
Difference =(70000) - 48000
Difference= 22000
3. Based On the above calculation the markets I would recommend that the company focus its advertising campaign is medical market
