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Answer:
Option (C) is correct.
Explanation:
Contribution per unit:
= selling price - variable cost per unit
= $225 - $90
= $135 per unit
Break-even in (Units):
= fixed expense ÷ Contribution per uni
= 354,060 ÷ 135
= 2622.67
So, Break-even in Sales:
= Break-even units × selling price
= 2622.67 × $225
= $590,100
Therefore, the break-even in monthly dollar sales is closest to $590,100.
Probably rent to buy but if that isn't an answer tell me the options.
Answer:
Net income= $33 million
Explanation:
A leveraged buyout is a buyout of an entity by it's own managers/board members mostly through debt financing. Now the expected sales after the buyout is 500 million, we are asked to calculate net income only in the first year. First of all lets see what net income is. Net income is the remaining amount of income after having paid all the expenses which is mostly the residual income available for either distribution to shareholders or transfer to retained earnings.
The formula for net income is as follows:
Net income/profit= Sales revenue - COGS - Administrative expenses- depreciation and amortization - Interest expense - Tax
Let first calculate COGS & other administrative expense, depreciation and interest expenses first.
COGS & ADMIN: 500*0.6=300 m
Depreciation: 500*0.05 =25m
Interest expense for the year: 1500 * 0.08= 120m
Now lets substitute values in the formula mentioned above:
Income before taxes: 500m - 300m - 25m - 120m
Income before taxes: 55m
Income after taxes; 55m - 22m (taxes= 55*40%)
Net income= $33 million
Answer:
A. Guidance from the franchisor
Explanation:
Under franchising , the franchisor grants license and transfer its business expertise, unique successful processes and ideas to another business (franchisee) , usually located in another country to, carry out franchisor's business in return for a fee.
Examples of Franchising being, KFC, McDonalds and chain of other fast food restaurants operating across the globe.
The franchisee i.e the one who avails the license to operate the business of franchisor, gets the benefit of using the already successful expertise and business guidance from the franchisor which otherwise would've required years of operations to develop.
Also the franchisee benefits from operating under established and renowned brand name of the franchisor.
So, in the given case, Brian would benefit in the form of, availing regular guidance and instructions from the franchisor.
