Answer:
$18,250
Explanation:
In this question, we are asked to calculate the net operating income for a division of a firm.
We proceed as follows;
Turnover=Sales/Average operating assets
Average operating assets=(730,000/2)=$365000
Return on investment=net operating income/Average operating assets
Hence Average operating assets=($365000*5%)
which is equal to
=$18250.
Answer:
$23, 472
Explanation:
The question is to calculate how much Derek is willing to pay for the machine.
What the money Machine will pay in 5 years = $43, 245.00
The Discount rate= 13%
The number of years = 5 Years
Therefore, Present value of the machines:
PV= P x [1/(1+r)∧n]; P= Future benefit; r = rate and n = number of years
The calculation is as follows
<h2>PV= P x [1/(1+r)∧n</h2><h2>= $43,245 x 1/[(1+0.13)∧5]</h2><h2>=$43,245 x 1/1.84243</h2><h2>=$43,245 x 0.5428</h2><h2>=$23,472 (rounded)</h2>
Answer:
B. its fixed cost in both the short run and the long run.
Explanation:
As there is no production the fixed costs remains the same for short run and long run too, because there is no activity which might be used for these costs allocation in the short or long run. In the long run a fixed cost might behave as a variable cost if there is any activity involved. I the short run the fixed costs is considered as fixed whether there is any activity or not.
Answer:
The net income from the income statement is $135,000.
Explanation:
The income statement for the year ended May 31, 20Y6 can be prepared as follows:
Paradise Travel Service
Income Statement
For the Year Ended May 31, 20Y6
<u>Particulars $ $ </u>
Revenue:
Fees earned 900,000
Expenses:
Wages expense (450,000)
Office expense (300,000)
Miscellaneous expense <u> (15,000) </u>
Total expenses <u> (765,000) </u>
Net income <u> 135,000 </u><u> </u>
Therefore, the net income from the income statement is $135,000.