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Alexxandr [17]
3 years ago
12

Darrell and Jim are planning to run in their office-sponsored marathon and plan on joining a gym to train.Darrell finds that gym

-A has a $40 joining fee and then costs $15 per month after that.Jim finds that gym-B is free to join and costs $20 per month after. At what number of months of training would gym-A to be a cheaper option than gym-B
Business
1 answer:
patriot [66]3 years ago
5 0

Answer:

From number of month to be 9, training would be cheaper in gym A than in gym B.

Explanation:

To calculate the number of months when option containing gym A becomes cheaper than option of gym B, we first need to form cost equations for both and equate them.

Let x be the number of months.

The cost of gym A is = 40 + 15x

The cost of gym B = 20x

40 + 15x = 20x

40 = 20x - 15x

40 = 5x

x = 40/5

x = 8

So, the cost for both options will be equal when the number of months is 8. From number of month to be 9, training would be cheaper in gym A than in gym B.

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Answer:

External funds needed = $40,000.

Explanation:

An increase in the firm's retained earnings (a component of the shareholder's equity) arises as a result of higher sales volume, thereby making the  Asset = Liability + Shareholder's Equity Equation unbalanced.

Therefore, there must be an increment in the firm's assets by an equal amount in order to re balance the equation. If there is an increase in assets by a greater magnitude than retained earnings increment, the gap is filled by external financing (which is a liability and increases the liability component of the equation).

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