Answer:
d. 96,000
Explanation:
Provided required rate of return on investments of $800,000 = 12%
Now desired profit = $800,000 X 12% = $96,000
therefore when fixing the price per unit this profit shall be added, and then reverse calculation is done.
With this we can get the desired profit.
At the last the total of cost and profit shall be divided by number of units to get the selling price per unit.
Therefore desired profit in dollars = $96,000
The answer to this question is the term net income. A net income is the remaining money after deductions or expenses have been taken from the gross income. Net income is also known as net profit. Net income also states and calculates the total revenue that exceeds after all operational expenses and taxes been deducted.
Answer:
If I were to start a business, I will choose Sole Proprietorship.
Explanation:
Reasons why I will choose Sole Proprietorship
* I will be the sole owner and responsible for my business.
* All profits (and loss) will belong to me, means the more I work harder, the more return I (alone) will get.
* I can make all the decisions by myself, without the interference of any other person.
* I can expand my business as per my convenience and hard work, if I succeed I can eat all the fruits myself.
* I can grow my business as much I want.
* No one will be my boss, I will be setting my own working hours and work load etc.
Explanation:
Risk management is to increase a firm ’s profitability;
(1) Raise all use of borrowing by them.
(2) Preserve their optimum budget for resources in accordance.
(3) Reduce potential distress-related expenses.
(4) Make use of their comparable liquidity advantages compared to the individual's liquidity capacity.
Answer:
Effect on income= $15,000 favorable
Explanation:
Giving the following information:
It has just determined that another $40,000 of repair work is required. Alternatively, it has found a newer used lift that is for sale for $170,000. The company estimates that both lifts would have useful lives of 6 years. The new lift is more efficient and thus would reduce operating expenses by about $20,000 per year. Darcy Roofing could also rent out the new lift for about $10,000 per year. The old lift is not suitable for rental. The old lift could currently be sold for $25,000 if the new lift is purchased.
Year 0= -170,000 + 25,000 + 40,000= -105,000
Year 1 trough 6= 20,000*6= 120,000
Effect on income= $15,000 favorable
