Answer: The answer is given below
Explanation:
After-tax return is the percentage on an investment's return after tax expense has been deducted from the return that is earned.
The following can be derived from the information given in the question:
• SHO is a LLC
Gross return = 200,000 X 11%
= 200,000 × 0.11
= 22,000
Marginal tax at 35% = 22,000 X 35%
= 22000 × 0.35
= 7,700
Return before dividend tax:
= 22000 - 7700
= 14,300
Self employment tax at 2.9%:
= 14,300 X 2.9%
= 14300 × 0.029
= 414.7
Medicare tax at 0.9%
= 14,300 X 0.9%
= 128.7
Cash return after tax:
= 14300 - 414.7 - 128.7
= $13756.6
• SHO is a C corporation:
Gross return = 200,000 X 11%
= 200,000 × 0.11
= 22,000
Marginal tax at 35% = 22,000 X 35%
= 22,000 × 0.35
= 7,700
Return before dividend tax:
= Gross return - Marginal tax
= 22000 - 7700
= 14300
Dividend tax = 14,300 X 15%
= 14,300 × 0.15
= 2,145
Cash Return after tax:
= 14300 - 2145
= $12,155
Imagine yourself as a relationship management associate within Garage. You are tasked with
obtaining the following targets in 1 month.
● Building relationships with 250 spare part sellers on platform in 2 weeks
● Selling 500,000GHC of parts through part sellers
Details on each target are below
● Building relationships with 250 spare part sellers on platform in 2 weeks: Garage
partners with part sellers for data collection and part sales. As a relationship
management associate, you’re charged with convincing 250 spare part sellers to partner
with Garage as a parts supplier while creating a system to collect sales data from them.
In your write up, talk about where you will go to find these 250 spare part sellers? what
will your pitch to them be? How would you incentivize them to partner with us? How
would you determine which parts to sell through them? What promotions and incentive
programs will you run (Assume you are able to get parts at wholesale prices)
● Selling 500,000GHC of parts through part sellers: Given your approaches for onboarding
250 spare parts sellers, describe how you would ensure this cohort of mechanic shops
and part sellers can sell 500,000GHC worth of parts in a month?
In your written response, be as detailed as possible in describing your strategy and
approach to each of these targets including the specific steps, resources etc. that you
will leverage. Use examples and your own assumptions where necessary.
To achieve targets, Garage's relationship management associate will find spare part sellers, incentivize them with benefits and promotions, and provide support to ensure sales success.
As a relationship management associate within Garage, achieving the targets of building relationships with 250 spare part sellers on the platform in 2 weeks and selling 500,000GHC worth of parts through part sellers requires a strategic approach. Here's a detailed plan to accomplish these goals:1. Finding Spare Part Sellers: To identify 250 spare part sellers, I will utilize various resources such as online directories, industry associations, and trade shows to identify potential sellers. I will also leverage social media platforms and online forums where spare part sellers gather. Additionally, Garage can collaborate with existing sellers to recommend other reliable sellers.2. Pitch and Incentives: To convince spare part sellers to partner with Garage, my pitch would focus on the benefits they can gain, including access to a larger customer base, improved visibility, and increased sales. Incentives could include offering competitive wholesale prices, attractive payment terms, exclusive promotional offers, and marketing support such as featuring their products on Garage's platform.3. Determining Parts to Sell: To determine which parts to sell through the sellers, I would analyze market demand and trends, conduct surveys and collect feedback from mechanics and customers, and track sales data. This information will help identify popular parts with high demand and optimize inventory management.4. Promotions and Incentive Programs: To drive sales, I would introduce promotions such as discounts on bulk purchases, seasonal offers, loyalty programs, and rewards for achieving sales targets. Incentives like commission-based schemes or bonus structures for sellers who exceed sales targets can motivate them to actively promote and sell Garage's parts.5. Ensuring Sales Targets: To ensure that the cohort of mechanic shops and part sellers can achieve the sales target of 500,000 GHC in a month, I would provide them with sales training and marketing materials to enhance their selling skills. Regular communication and feedback sessions would be conducted to address any challenges they face and provide support where needed. Additionally, analyzing sales data and monitoring progress will help identify underperforming areas and allow for timely adjustments to meet the target.By implementing these strategies and actively supporting the spare part sellers, Garage can establish strong relationships, increase sales volume, and achieve the desired targets in a month.For more questions on promotions
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1. A workshop prepared two articles A and B .The time required at different stages and profit per unit are shown below. Formulate the LP model Work center product Cutting Machine Packing Profit per unit($) A 2 1 1 50 B 1 2 0.5 60 Total capacity 80 100 50
This linear programming model maximizes the total profit (Z) obtained from articles A and B. The constraints ensure that the total capacity at each stage (Cutting Machine, Work center and Packing) is not exceeded.
What is linear programming model?Linear programming is a mathematical modelling technique used to optimize a certain outcome given a set of constraints. The objective of linear programming is to maximize or minimize a function subject to certain linear constraints.
LP Model: Maximize Z = 50x_A + 60x_B
Subject to:
2x_A + x_B ≤ 80 (Total capacity at Cutting Machine)
x_A + 2x_B ≤ 100 (Total capacity at Work center)
x_A + 0.5x_B ≤ 50 (Total capacity at Packing)
x_A, x_B ≥ 0 (Non-negativity)
This linear programming model maximizes the total profit (Z) obtained from articles A and B. The constraints ensure that the total capacity at each stage (Cutting Machine, Work center and Packing) is not exceeded.
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Identify messages that you have seen or heard from several companies?
Answer:
Integrated marketing communication can be described as the use of marketing strategies to optimizethe communication of a consistent message of the company’s brands to stakeholders. Messages areused by organizations to communicate about themselves and the value of the product they offer. I have seen these kind of messages from several companies. One of them is Telekom Networks of Malawi. This company provide communication services in Malawi. Their slogan is “always with you”. I can say that the company is consistent with its message across the market they are targeting because their adverts are everywhere (internet, newspapers, Magazine e.t.c) so as their services, assuch they reach their targets and deliver their promises, and also the services they provide are in line with their slogan, for example, they provide airtime on credit when one need it most.
On January 1, 2025, Indigo Company makes the two following acquisitions. 1. Purchases land having a fair market value of $900,000 by issuing a 5-year, zero-interest-bearing promissory in the face amount of $1,262,297. 2. Purchases equipment by issuing a 5%, 9-year promissory note having a maturity value of $350,000 (interest payable annually on January 1). The company has to pay 7% interest for funds from its bank. (a) Record the two journal entries that should be recorded by
The two journal entries that that should be recorded by Indigo Company for the two purchases on January 1, 2025 is -
No. Date Account Titles and Explanation Debit Credit
(a)1. Jan 1, 2025 Land $900,000
Discount on Notes Payable $362,297
Notes Payable $1,262,297
2. Jan 1,2025 Equipment $304,408
Discount of notes payable $45,592
Notes payable $350,000
What is a journal entry?A journal entry is the act of keeping or making records of any economic or non-economic transaction. An accounting journal, which shows a company's debit and credit balances, records transactions.
The calculation of value of equipment is as follow:-
Present value of $350,000 due in 9 years at 7%
PV = C/(1+i)^n
= $350,000/(1+0.07)^9 = $190,383
And $350,000 ×5% = $17,500
Present value of $17,500 payable annually for 9 years at 7% annually.
PV of Annuity = P[1-(1+r)^-n/r]
= $17,500[ 1-(1+0.07)^-9/0.07]
= $114,025
The journal entry for recording the interest is :-
No. Date Account Titles and Explanation Debit Credit
b. 1. Dec.31,2025 Interest expense(90000*7%) $63,000
Discount on Notes Payable $63,000
2. Dec.31,2025 Interest Expense(304408*7%) $21,308
Discount on notes payable $3,808
Cash ($350,000*5%) $17,500
Therefore, the amount for equipment ( present value of notes) is $304,408 ($190,383 +$114,025), and the discount on notes payable is $45,592.
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Your question is incomplete, but most probably the full question was,
On January 1, 2025, Indigo Company makes the two following acquisitions. 1. Purchases land having a fair market value of $900,000 by issuing a 5-year, zero-interest-bearing promissory in the face amount of $1,262,297. 2. Purchases equipment by issuing a 5%, 9-year promissory note having a maturity value of $350,000 (interest payable annually on January 1). The company has to pay 7% interest for funds from its bank. (a) Record the two journal entries that should be recorded by Indigo Company for the two purchases on January 1, 2025. Record the interest at the end of the first year on both notes using the effective-interest method. (b) (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g 58,971. if no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation No. Date Debit Credit a) 1 January 1, 2025 2. January 1,2025December 31 2025 (b) 1. December 31 2025 2.
Question 2
(10 Marks)
A company uses 15,000 units of stock item 6786 each year. The item has a purchase cost of R4 per
unit. The cost of placing an order for re-supply is R220. The annual holding cost of one unit of the item
is 10% of its purchase cost.
Data relating to stores item 6787 are as follows.
Daily use:
Lead time for re-supply:
Reorder quantity:
Required:
i.
ii.
300 Units
5-20 Days
10,000 Units
EOR
What is the economic order quantity for item 6786, to the nearest unit?
What would be the effect of an increase in the annual holding cost per unit on (1) the EOQ and (2)
total annual ordering costs?
What should be the reorder level for this stock item (6787), to avoid the possibility of inventory-outs"
1. The economic order quantity for item 6786 is approximately 2,568 units. If the annual holding cost per unit increases, the EOQ will decrease. The total annual ordering costs will also decrease if the annual holding cost per unit increases.
2. The reorder level for stock item 6787 should be set at 6,000 units to avoid the possibility of inventory-outs.
How did we arrive at these assertions?To calculate the economic order quantity (EOQ) for item 6786, we can use the following formula:
EOQ = √((2 × Annual Demand × Cost per Order) / Holding Cost per Unit)
Given the following data:
Annual Demand = 15,000 units
Cost per Order = R220
Holding Cost per Unit = 10% of R4 = R0.4
Substituting these values into the formula:
EOQ = √((2 × 15,000 × 220) / 0.4)
EOQ = √(6,600,000)
EOQ ≈ 2,568 units (to the nearest unit)
Therefore, the economic order quantity for item 6786 is approximately 2,568 units.
Effect of an increase in the annual holding cost per unit:
1) The EOQ: If the annual holding cost per unit increases, the EOQ will decrease. This is because a higher holding cost per unit means it becomes more expensive to hold inventory, and therefore, it is more cost-effective to order smaller quantities more frequently.
2) Total annual ordering costs: The total annual ordering costs will also decrease if the annual holding cost per unit increases. This is because the decrease in the EOQ will result in more frequent orders, leading to more ordering costs but less holding costs. The decrease in holding costs will outweigh the increase in ordering costs, resulting in a lower total.
Reorder level for stock item 6787 to avoid inventory-outs:
To calculate the reorder level, we need to consider the daily use and lead time for re-supply. The reorder level should be set to ensure that there is enough stock to cover the daily demand during the lead time.
Reorder Level = Daily Use × Lead Time for Re-supply
Given the following data:
Daily Use = 300 units
Lead Time for Re-supply = 5-20 days (let's take the maximum value, which is 20 days)
Reorder Level = 300 × 20
Reorder Level = 6,000 units
Therefore, the reorder level for stock item 6787 should be set at 6,000 units to avoid the possibility of inventory-outs.
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Windsor, Inc. began the year with 12 unit of marine floats at a cost of $10 each. During the year, it made the following purchases May5, 29 units at $15; July 16, 15 units at$21; and December 7, 20 units on hand at the end of the period. Windsor used the periodic approach. Determine the cost of goods sold under FIFO. Cost of goods sold
Using the FIFO method, the cost of goods sold is calculated by assuming that the first units purchased are the first units sold.
What is the cost of goods sold under FIFO. Cost of goods sold?To calculate the cost of goods sold under FIFO, we need to first determine the cost of goods available for sale during the year:
Cost of goods available for sale = (12 units x $10 per unit) + (29 units x $15 per unit) + (15 units x $21 per unit) + (20 units x $21 per unit)
Cost of goods available for sale = $120 + $435 + $315 + $420
Cost of goods available for sale = $1,290
Next, we need to determine the cost of the units sold during the year. Since we assume that the first units purchased are the first units sold, we can use the following calculation:
Cost of goods sold = (12 units x $10 per unit) + (29 units x $15 per unit) + (15 units x $21 per unit) - (20 units x $21 per unit)
Cost of goods sold = $120 + $435 + $315 - $420
Cost of goods sold = $450
Therefore, the cost of goods sold under the FIFO method is $450.
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When a business behaves in an ethical manner, it is known as:
Answer:
organisational loyalties
Explanation:
Business are behaving in a manner that they do not change their relationship with other businesses or with workers.
Consider the following transactions:________. a. Purchased equipment for $130,000 cash. b. issued S14 par preferred stock for cash. c. Cash received from sales to customers of 535,000. d. Cash paid to vendors, 517,000. e. Sold building for $19,000 gain for cash. f. Purchased common treasury shares for 528,000. g. Paid a notes payable with 1,250 of the company's common shares. Requirement Identify the category of the statement of cash flows in which each transaction would be reported.
Answer:
a. Investing Activities
b. Financing Activities
c. Operating Activities
d. Operating Activities
e. Investing Activities
f. Financing Activities
g. Non - Cash Financing Activities
Explanation:
The Cash Flow Statement is Prepared under the Following Categories :
1. Operating Activities
Reports the cash flows from the ordinary course of business. Example is cash collection from customers.
2. Investing Activities
Reports the cash flow from sale or acquisition of assets. Example is the sale of the Building.
3. Financing Activities
Reports the cash raised by issuing financial instruments and the repayment there-off. Example is the issue of Preference Shares for Cash.
Non - Cash Items
These are not reported in the Cash flow statement because they do not include movement of cash.
Analyze the role played by government, universities, and entrepreneuers in innovation
The role played by government, universities, and entrepreneurs in innovation contributes unique resources, expertise, and perspectives that foster innovation and propel economic growth.
Here is an analysis of the role played by each:
Government:Government plays a vital role in innovation through various means:
a. Funding and Support: Governments allocate funds to support research and development (R&D) activities, providing grants, subsidies, and tax incentives for innovative projects.
b. Policy and Regulation: Governments create an enabling environment for innovation by implementing policies and regulations that promote competition, protect intellectual property rights, and encourage entrepreneurship.
c. Infrastructure and Education: Governments invest in physical infrastructure, such as transportation and communication networks, which are essential for innovation.
Universities:Universities play a critical role in innovation through research, education, and collaboration:
a. Research and Development: Universities are centers of knowledge creation and innovation. They conduct research across various disciplines, pushing the boundaries of knowledge and discovering new technologies, processes, and solutions.
b. Talent Development: Universities educate and train students in diverse fields, equipping them with the skills and knowledge to contribute to innovation. They foster critical thinking, problem-solving abilities, and a culture of exploration and curiosity.
c. Technology Transfer: Universities facilitate the transfer of research outcomes and technologies to the commercial sector. They collaborate with entrepreneurs and industry partners to commercialize innovations through licensing agreements, spin-off companies, or joint ventures.
Entrepreneurs:Entrepreneurs are central to the process of innovation and play a key role in transforming ideas into marketable products or services:
a. Idea Generation: Entrepreneurs are often the initiators of innovative ideas. They identify opportunities, envision new products or services, and develop unique value propositions. Their entrepreneurial mindset drives them to challenge existing norms and seek novel solutions.
b. Risk-Taking and Investment: Entrepreneurs take on risks by investing their resources, time, and effort into developing and commercializing innovations. They secure funding from various sources, such as venture capital, angel investors, or government grants, to finance their ventures.
c. Market Adoption and Scaling: Entrepreneurs are responsible for bringing innovations to the market and driving their adoption. They navigate challenges such as market validation, customer acquisition, and scaling operations.
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Assume that the adult population of the United States is 191.6 million, total employment is 117.6 million, and 9.4 million are unemployed. Then the unemployment rate, as normally computed, is approximately ______ percent.
a. 7.9
b. 7.4
c. 9.4
d. 4.9
Are marketing and sales the same in marketing
Answer:
marketing is building awareness of your organization and brand to potential customers. Sales is turning that viewership into a profit, by converting those potential customers into actual ones.
Explanation:
Roles and responsibility of central management(business policy)
Answer:
The Four Functions of Management: What Managers Need to Know
Planning. One main role of a manager is creating a plan to meet company goals and objectives. ...
Organizing. ...
Leading. ...
Controlling. ...
How to Develop Key Management Skills. ...
Work to Develop Your Management Skills With an MBA.
What restriction did the US government place on advertising in 1997?
O
A.
a ban on tobacco advertising
B.
a ban on direct mail advertising
OC.
a ban on advertisements related to food, cosmetics, and healthcare products
D.
a ban on deceptive advertisements
O E.
a ban on internet advertisements
Answer:
The answer should be D, a ban of deceptive advertisements.
Explanation:
In the 90s the government cracked down on deceptive advertising more than ever and more laws on the matter were added. The only other option that was actually ever banned was A, none of the other choices were ever banned. The ban on tobacco happened in the 70s under Nixon, that makes D the only possible answer. Hope this helps! :)
Answer:
D
Explanation:
The Tobacco Master Settlement Agreement reached in 1997 bans outdoor, billboard and public transportation advertising of cigarettes in 46 states. Restrictions on cigarette were further tightened in 2010 with passage of the Family Smoking Prevention and Tobacco Control Act.
A taxpayer tells you that they had health insurance coverage for the entire year, but they did not bring proof of the coverage.This information along with all other inforÂmation gathered during your interview does not seem unusual or questionable.As a tax preparer, you should:
a. Send the taxpayer home to get their insurance card
b. Prepare the return using the information without seeing any proof of insurance coverage
c. Prepare their return without giving them credit for having health insurance coverage24
As a tax preparer, you should prepare return using information without seeing any proof of the insurance coverage.
What is tax?To ensure that taxpayers are paying proper amount of tax at the proper time and obtaining the proper tax allowances and tax reliefs, policy actions and individual conduct are referred to as tax compliance. A tax is a mandatory financial charge or other sort of levy that is placed on a taxpayer by an administrative body to pay for certain public expenditures and administrative costs. While most tax rates are progressive and based on annual income levels, other taxes are flat percentage rates based on an individual's yearly income. Taxation is the economic process of transferring funds from people or businesses to the government. On economic wellbeing and growth, this may have either favorable or unfavorable impacts (known as the fiscal multiplier).
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n the money creation process, the simple money multiplier assumes that banks hold no excess reserves. What is the consequence of a bank holding excess reserves
Answer: The simple money multiplier becomes smaller as less money is loaned out
Explanation:
In the money creation process, the simple money multiplier assumes that thee are no excess reserves that are held by the banks and that there are no currency being held by the public.
The consequence of a bank holding excess reserves will be that the simple money multiplier will become smaller when less money is being loaned out. There will be less money in circulation when excess reserves are held by the banks. This will result in the money multiplier to be smaller.
what are examples of body language
Answer:
Biting nails, putting your hands on your cheek, touching your nose, rolling eyes, and this list is endless.
Explanation:
Body language is something everybody uses every day. It is a type of nonverbal communication in which physical behavior is used to express or convey. Most people use it if they don't want to express themselves in words.
As the level of inventory increases to provide better customer service both inventory costs and quality-related customer service costs increase.
a) true
b) false
Answer:
A. True
Explanation:
level of inventory is very essential as far as customer service is concerned, inventory are amount of goods that is stocked for some purposes, this could be to sell, to distribute.
It should be noted that As the level of inventory increases to provide better customer service both inventory costs and quality-related customer service costs increase.
If Country A is an agricultural country and Country B has many cities and factories, it would make sense for
both countries to set up car manufacturing plants.
Country A to specialize in growing corn while Country B specializes in making cars.
Country A to specialize in making cars while Country B specializes in growing corn.
both countries to compete in growing more corn.
Answer:
Country A to specialize in growing corn while country B specializes in making cars
Your company has a need for productivity apps that are usable anywhere and enable distributed teams to work together. Which vendor provides these services?
The Micro-soft is a vendor who will provides the services of productivity apps which are usable anywhere and also enable distributed teams to work together.
What is Micro-soft?Micro-soft is a developer of popular software systems and applications. most especially the Windows
Some of the productivity apps offered by Micro-soft includes:
WordExcelPower Point Outlook etcIn conclusion, the Micro-soft is a vendor who will provides the services of productivity apps which are usable anywhere and also enable distributed teams to work together.
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A good interpreter will be :_________.
A. bilingual, familiar with both business cultures, and employed by one of the businesses.
B. bicultural, bilingual, and familiar with both business cultures.
C. bicultural and an employee of the visiting business.
D. bicultural, bilingual, and employed by the host business.
Answer:
i would say A. sry if it's wrong :(
Explanation:
In a communist economy all economic activities are controlled by?
Answer:
benefits of quality management
What is the difference between final goods and intermediate goods?
A) Final goods are goods that are purchased by the end-consumer or user for their personal consumption or use.
B) Intermediate goods, on the other hand, are goods that are used as inputs in the production of other goods.
Final goods and intermediate goods are terms used in economics to distinguish between different types of goods in the production process. Here's a breakdown of the difference between the two:
1. Final Goods:
Final goods are goods that are purchased by the end-consumer or user for their personal consumption or use. These goods are ready for consumption and do not undergo further processing or transformation before reaching the final consumer. Examples of final goods include food products, clothing, electronics, furniture, and vehicles. Final goods are the end result of the production process and are intended for final consumption or use.
2. Intermediate Goods:
Intermediate goods, on the other hand, are goods that are used as inputs in the production of other goods. They are not intended for final consumption but are instead used as raw materials, components, or capital goods in the production process. Intermediate goods undergo further processing or transformation before being included in the final goods. Examples of intermediate goods include raw materials like steel or wood, components like circuit boards or engines, and machinery or equipment used in production.
The key distinction between final goods and intermediate goods lies in their purpose and stage in the production process. Final goods are produced for the ultimate satisfaction of consumers' needs and are ready for consumption, while intermediate goods are used in the production of other goods and undergo further processing.
It's important to note that when calculating a country's Gross Domestic Product (GDP), only the value of final goods is considered. Intermediate goods are excluded to avoid double-counting, as their value is already included in the final goods they contribute to. By focusing on final goods, GDP provides a measure of the value of goods and services produced for final consumption in an economy.
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Discusses the effective and ethical use of graphics. Write at least two paragraphs explaining this section. Include specific examples.
Many accept morals for graphicsought to be founded on help, and that aiding others is something to be thankful for to do. With information and admittance to devices that can coordinate individuals' considerations and activities.
Design ethics assist with deciding elements that should be in items and administrations or highlights that should not be. Plan morals help with surveying the moral importance or moral worth of the items that outcome from the action of planning. For example, Signal is a solid telephone and courier application explicitly intended to safeguard its client's security.
The best ethical design practice is foster plans that mainly gather individual data that is to the greatest advantage of the clients.
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Question 7 of 10
Business health insurance plans are
A. required
B. varied
C. non-existent
D. uniform
so
why do many essential products that we use (e .g water) have relatively low prices, while other less essential products (e.g diamonds) command higher prices? Explain this paradox using marginal utility approach
In a market economy, the cost of many necessities for human life is significantly lower than the cost of less necessary necessities.
What do you call necessities?
Anything you need in order to function correctly or complete an action is referred to as a need. Life cannot exist without water. Alternative Words: essential, need, need, necessary More necessary synonyms Countable noun You must use your revenue to purchase necessities, which are goods or services. Basic necessities include things like food, clothing, heat, shelter, and medical attention. something which is essential. For the beach, sunscreen is a must-have. food, clothing, and other essentials. It's important to get enough of sleep. Living close to work is essential for those without cars.
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Aberecrombie Fitch is discriminating aganist people or do you think thry exrcsing thier right as a private business to hire based of thier own needs example why or why not paragraphs 5 sentences
Answer:
They are a private business, but in this current climate its morally wrong, but they can still do it.
Explanation:
Just do it on your own kiddo. I gave you the base
Rundle Company is considering the replacement of some of its manufacturing equipment. Information regarding the existing equipment and the potential replacement equipment follows.
Existing Equipment Replacement Equipment
Historical cost $ 109,000 Market price $ 110,000
Operating expenses* 120,000 Operating expenses* 111,000
Salvage value 29,000 Salvage value 11,000
Market value 40,000 Useful life 8 years
Book value 35,000
Remaining useful life 8 years
*The amounts shown for operating expenses are the cumulative total of all such expected expenses to be incurred over the useful life of the equipment.
Required
Calculate the total relevant cost of existing equipment and the potential replacement equipment. Should the equipment be replaced?
Based on the historical cost of the existing equipment to Rundle Company, the total relevant cost of existing equipment would be $131, 000.
The total relevant cost of the potential replacement equipment would be $210, 000.
The equipment should not be replaced because cost of the replacement equipment will be more than the cost of the existing equipment.
How to find the cost of the equipment?The total relevant cost of the existing equipment can be found by adding the operating costs and the market value and then deducting the salvage value. This is because the historical cost is no longer relevant.
The total relevant cost is therefore:
= Operating expenses - Salvage value + Market value
= 120, 000 - 29, 000 + 40, 000
= $131, 000
The total relevant cost of the potential replacement equipment would be calculated using the historical cost because this would be the same as the market price. This is because the equipment is yet to be purchased.
The total relevant cost is:
= Historical Cost + Operating expenses - Salvage value
= 110, 000 + 111, 000 - 11, 000
= $210, 000
The total relevant cost for the existing equipment is less than that of the potential replacement so the equipment should not be replaced.
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Which type of lender offers the lowest interest rates?
A. Bank or credit union
B. Payday lender
C. Title lender
D. Credit card
Answer:
A. Bank or credit union
Payday lenders are used for people who can't get loans at banks. They are to be used last as they have very high interest rates. The bank or credit union will be the cheapest in terms of interest rates.
I got it, hope this helps
Explain how an employee stock ownership plan (ESOP) can be used to fund the sale of a company to employees. Research and explain the process that enabled the employees to be the majority owners of Publix Super Markets to enrich the discussion about employee stock ownership plans.
Answer:look just bee the boss
Explanation:cause thats all ik
The owner of Genuine Subs, Inc., hopes to expand the present operation by adding one new outlet. She has studied three locations. Each would have the same labor and materials costs (food, serving containers, napkins, etc.) of $2.40 per sandwich. Sandwiches sell for $3.20 each in all locations. Rent and equipment costs would be $5,650 per month for location A, $5,825 per month for location B, and $6,075 per month for location C.
location C has the highest break-even quantity of 7,593.75 sandwiches.
Given, The owner of Genuine Subs, Inc., hopes to expand the present operation by adding one new outlet. She has studied three locations. Each would have the same labor and materials costs (food, serving containers, napkins, etc.) of $2.40 per sandwich.
Sandwiches sell for $3.20 each in all locations. Rent and equipment costs would be $5,650 per month for location A, $5,825 per month for location B, and $6,075 per month for location C.The formula for the break-even point is as follows:Fixed costs / (sales price per unit - variable costs per unit).
First, let's calculate the variable costs per sandwich.V = labor and materials cost per sandwich= $2.40 per sandwichNext, we calculate the contribution margin:Contribution margin per sandwich = Selling price - Variable costs= $3.20 - $2.40= $0.80 per sandwichFixed costs for A = $5,650Fixed costs for B = $5,825Fixed costs for C = $6,075.Substitute the values in the formula:Breakeven quantity A = $5,650 / ($3.20 - $2.40) = $5,650 / $0.80 = 7,062.5 sandwiches Breakeven quantity B = $5,825 / ($3.20 - $2.40) = $5,825 / $0.80 = 7,281.25 sandwiches.
Breakeven quantity C = $6,075 / ($3.20 - $2.40) = $6,075 / $0.80 = 7,593.75 sandwiches.
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