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xxTIMURxx [149]
3 years ago
7

What is the residual income(loss) if a company has sales of $205,000, cost of goods sold of $115,000, operating expenses of $40,

000, average invested assets of $915,000, and hurdle rate of 12.75 percent?

Business
1 answer:
AleksAgata [21]3 years ago
7 0

Answer:

Following are the solution to this question:

Explanation:

value                                                                                   Amount

Sale                                                                                 \$ 205,000                                  

The less cost of product sol                                                \$115,000

The less operate expenses                                                \$40,000

Earning                         = \$205,000- \$115,000 - \$40,000   =    \$ 50,000

Average funds invested                                                 \$915,000

Investment return                                     = \frac{ \$50,000}{\$915,000} \times 100 = 5.464 \%

Required Income                             = \$ 915,000\times 12.75\%                            = \$ 116,662.5

Residual Income (Loss) = \$50,000 - \$116,662.5   =                       (\$66,662.5)

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Income elasticity measures the:____.
larisa [96]

Answer:

C. Responsiveness of quantity demanded to a percentage change in income.

Explanation:

Income elasticity is defined as the responsiveness of the quantity of a good demanded by an individual as his income changes, all other factors being constant.

Mathematically it is calculated as percentage change in quantity demanded divided by percentage change in income.

Income elasticity is used to find out if a good is a necessity or a luxury good.

The demand for goods that are a necessity does not change with a change in income.

However demand for a luxury good increases as income increases and vice versa

8 0
3 years ago
What are the disadvantages of alloys​
tatyana61 [14]
They are prone to corrosion and are not as strong
3 0
3 years ago
On January 1 of this year, Shannon Company completed the following transactions (assume a 8% annual interest rate):
inessss [21]

Answer:

a. The cost of the truck that should be recorded at the time of purchase is:

= $48,741.

b. The option of paying $11,400 annually for 3 years results in a PV of $29,379, which is lower than $30,000 paid immediately.

c. The single amount that must be deposited in this account on January 1 of this year is:

= $54,148.

d. The single sum that must be deposited in the bank on January 1 of this year to provide 8 equal annual year-end payments of $41,400 to a retired employee is:

= $237,910.85

Explanation:

a) Data and Calculations:

a. Bought a delivery truck and agreed to pay $61,400 at the end of three years.

From an online financial calculator:

(# of periods)  3

I/Y (Interest per year)  8

PMT (Periodic Payment)  0

FV (Future Value)  $61400

Results

PV = $48,741.30

Total Interest $12,658.70

b. Rented an office building and was given the option of paying $11,400 at the end of each of the next three years or paying $30,000 immediately.

From an online financial calculator:

N (# of periods)  3

I/Y (Interest per year)  8

PMT (Periodic Payment)  $11,400

FV (Future Value)  0

Results

PV = $29,378.91

Sum of all periodic payments $34,200.00

Total Interest $4,821.09

c. Established a savings account by depositing a single amount that will increase to $92,800 at the end of seven years.

From an online financial calculator:

N (# of periods)  7

I/Y (Interest per year)  8

PMT (Periodic Payment)  0

FV (Future Value)  $92,800

Results

PV = $54,147.91

Total Interest $38,652.09

d. Decided to deposit a single sum in the bank that will provide 8 equal annual year-end payments of $41,400 to a retired employee (payments starting December 31 of this year.

From an online financial calculator:

N (# of periods)  8

I/Y (Interest per year)  8

PMT (Periodic Payment) $41,400

FV (Future Value)  0

Results

PV = $237,910.85

Sum of all periodic payments $331,200.00

Total Interest $93,289.15

4 0
3 years ago
The following two errors were made in the physical inventory counts: 1. 2018 ending inventory was understated by $8,000. 2. 2019
elena-14-01-66 [18.8K]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

The following two errors were made in the physical inventory counts: 1. 2018 ending inventory was understated by $8,000. 2. 2019 ending inventory was overstated by $4,000.

We were not provided with the relevant information to recalculate the cost of goods sold, but, I can provide the formula to solve the problem.

COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory

1- COGS= beginning finished inventory + cost of goods manufactured - (ending finished inventory + 8,000)

2- COGS= beginning finished inventory + cost of goods manufactured - (ending finished inventory - 4,000)

7 0
3 years ago
Describe the trends in fuel efficiency in the United States since the 1970s. Explain why the price of gasoline is much higher th
Georgia [21]

Answer:

See the concepts below

Explanation:

Government fuel efficiency standards for vehicles have been generally slightly low for many years. Between the years 1973-1985 the average fuel efficiency for new vehicles sold in the U.S. increase considerable, because the government create new laws for the corporate average fuel economy.

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Fee-bate represent a program in "which buyers of fuel inefficient cars would pay a high fee, and the resulting revenue would be given to buyers of efficient cars as rebates "

Hybrid: is an energy efficient gasoline-electric car. "Use a small traditional gasoline-powered engine and a battery-powered electric motor used to provide the energy needed for acceleration and power".

Plug-in hybrid: is defined as "a hybrid with a second and more powerful battery that can be plugged into an electrical outlet and recharged anytime".

Fuel cell motor: "is more efficient thn combustion engines, having no moving parts, requiring little maintenance, and use hydrogen gas as a fuel to produce electricity"

Living roofs:  "green roof or living roofs, also known as a grass roof or living roof, is a growing trend. Architects can put roots down in the most expected of places and is a roof that is covered in plants, which reduces stormwater run-off and lowers cooling costs".

And the importance of white or light colored roof is that reflect away heat rays from the sun, and we have less heat absorption.

LED bulbs "require much less wattage than CFL or Incandescent light bulbs, and that's the reason why LEDs are more energy-efficient and longer lasting than their competitors".

A compact fluorescent (CFL) "eliminates three-fourths of the mercury pollution of a traditional light bulb: 3.3 mg versus 13.6 mg and using CFLs reduces the amount of mercury outside to the air and surface water and that's to important to the environment"

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Adjust your day-to-day behaviors reducing the amount of energy consumed.

Replace your light bulbs with LED lights.

Use smart power strips, removing the vampire concumption.

Reduce the water heating expenses.

Change the system of energy of your house

Use other types of energies to satisfy the requirments.

Give three reasons why we waste so much energy.

Life style

Weather conditions

Pleasure

6 0
3 years ago
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