Establishing a secure customer or client base is an example of how to deal with this type of risk.

Awanita Enterprises sells computer flash drives for $ 2.41 per unit. Unit variable cost is $ 0.07. The breakeven point in units

Dennis_Churaev [7]

Answer:

Margin of safety= $2,651

Explanation:

Giving the following information:

Awanita Enterprises sells computer flash drives for $ 2.41 per unit. Unit variable cost is $ 0.07. The breakeven point in units is 3,400, and expected sales in units are 4,500

Margin of safety= 4,500*2.41 - 3,400*2.41= $2,651

4 0

3 years ago

Max's Kennels spent $220,000 to refurbish its current facility. The firm borrowed 60 percent of the refurbishment cost at 5.95 p

Jlenok [28]

Answer:

The monthly payment is $2184.52

Explanation:

Given

$Total\ Amount\ Spent\ = $220,000$

$Amount\ Borrowed = 60\%$

$Rate = 5.95\%$

$Duration = 6\ years$

Required

$Monthly\ Payment$

Firstly, the loan amount has to be calculated

The Question says; of the total amount spent, only 60% was borrowed;

So;

$Loan = 60\%\ of\ 220,000$

$Loan = 132,000$

The monthly payment can then be calculated using the following formula

$Amount = P * \frac{r}{12} * \frac{(1 + \frac{r}{12})^n}{(1 + \frac{r}{12})^n - 1}$

Where P = Loan Amount = 132,000

r = rate of payment = 5.95% = 0.0595

n = duration (in month)

n = 6 years

n = 6 * 12 months

n = 72 months;

Substitute the above parameters in the formula;

$Amount = P * \frac{r}{12} * \frac{(1 + \frac{r}{12})^n}{(1 + \frac{r}{12})^n - 1}$ becomes

$Amount = 132,000 * \frac{0.0595}{12} * \frac{(1 + \frac{0.0595}{12})^{72}}{(1 + \frac{0.0595}{12})^{72} - 1}$

$Amount = \frac{132,000*0.0595}{12} * \frac{(1 + \frac{0.0595}{12})^{72}}{(1 + \frac{0.0595}{12})^{72} - 1}$

$Amount = 654.5 * \frac{(1 + \frac{0.0595}{12})^{72}}{(1 + \frac{0.0595}{12})^{72} - 1}$

$Amount = 654.5 * \frac{(\frac{12.0595}{12})^{72}}{(\frac{12.0595}{12})^{72} - 1}$

$Amount = 654.5 * \frac{(1.0049583)^{72}}{(1.0049583)^{72} - 1}$

$Amount = 654.5 * \frac{1.42777239524}{1.42777239524 - 1}$

$Amount = 654.5 * \frac{1.42777239524}{0.42777239524}$

$Amount = 2184.51925155$

$Amount = 2184.52\ (Approximated)$

<em>Hence, the monthly payment is $2184.52</em>

3 0

3 years ago

Nike decides to invest $60,000,000 into a shoe factory in Vietnam. What is the opportunity cost in this situation

Sergeu [11.5K]

Based on the payoff of the other investment alternatives, Nike's opportunity cost is<u> $600,000.</u>

<h3>What is Opportunity Cost?</h3>

It refers to benefits forgone when an alternative is picked instead of another alternative.
Is calculated as the payoff from the next best investment.

The next best investment was the $600,000 Nike was making per year on its money market account which makes this amount the opportunity cost of investing in Vietnam.

Find out more on opportunity cost at brainly.com/question/1549591.

3 0

2 years ago

Lake inc. and river inc. reported net incomes of $800,000 and $1,000,000 respectively, for the most recent fiscal year. both com

Aliun [14]

Answer:

ROA= 8%

Explanation:

Return on assets is defined as the revenue that an asset generates in a particular period.

ROA shows how efficiently a manager is generating income from the companie's assets.

The formula is

Return on asset = Net income ÷ Ending Assets

Net income= $800,000

Ending asset= Price of shares * Number of shares

Ending asset= 50 * 200,000 = $10,000,000

ROA= 800,000 ÷ 10,000,000

ROA= 0.08= 8%

A ROA of above 5% is considered o be a good return on investment

5 0

3 years ago

What is the support value activity that provides employees with training, hiring, and compensation?

Anna71 [15]

<h2>Human Resource Management (HRM)</h2>

Human resource management are the support activity that provides employees with training, hiring and compensation.

Explanation:

HRM in training: Training & Development department comes under HRM. This is responsible

to identify the training needs,

to look out for skill gaps in employees performance
to find future needs and then prepare a training calendar and implement those to uplift the organization need.

HRM in hiring: Recruitment team is responsible for

obtaining requirement from the concern department head

sourcing the job portal
identifying the right candidate
complete the interview process
hire and hand hold till they enter into their team

HRM in compensation:

Plays vital role during appraisal and also during recruitment especially in negotiation

3 0

3 years ago