Answer:
The correct answer is option D.
Explanation:
Sunk costs can be defined as those costs which already been incurred and cannot be recovered anymore. These costs are excluded from business decision making.
It is can be referred to as a cost that is no longer relevant.
The $8 paid for a ticket, after the person starts watching the movie is a sunk cost as it cannot be recovered anymore.
Sunk costs are contrasted to relevant cost which is yet to be incurred in the future. Cost pf machinery, equipment, etc are examples of sunk cost.
Answer:
57.5%
Explanation:
Data Provided:
Total Sales = $ 200,000
The net income = $ 100,000
Depreciation = $ 20,000
Interest = $ 10,000
Taxes = $ 5,000
Now,
the operating profit is the from the income before the taxes and interest. Thus,
the interest and taxes will be included in the net income for the operating profit
therefore,
The operating profit = income + Interest + Taxes
or
The operating profit = $ 100,000 + $ 10,000 + $ 5,000 = $ 115,000
Now,
the operating profit margin = ( Operating profit / Sales ) × 100
or
= ( $ 115,000 / $200,000 ) × 100 = 57.5%
Answer:
The price you should be willing to pay for this stock= $24.86
Explanation:
To estimate the stock will be worth $50 per share 5 years from now and you require a 15% rate of return for stock investments of this type . Therefore 50= xX1.15^5 by solving this equation we have x= 24.86 . The price you should be willing to pay for this stock= $24.86
Answer:
Year 1 : $20000
Year 2 : $460000
Explanation:
Year 1 calculation:
120000-20000/50000*10000 =$20000
Year 2 calculation:
120000-20000/50000*23000=$46000
Financial records, A company’s competitors. Got it from quizlet!
