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nekit [7.7K]
2 years ago
7

Rainbow Paints operates a chain to retail paint stores. Although the paint is sold under the Rainbow label, it is purchased from

an independent paint manufacturer. Guy walker, president of Rainbow paints, is studying the advisability of opening another store. His estimates of monthly costs for the proposed location are:
Fixed costs:
Occupancy costs $ 3,160
Salaries 3,640
Other 1,200
Variable costs (including cost of paint) $ 6 per gallon
Although Rainbow stores sell several different types of paint, monthly sales revenue consistency averages $10 per gallon sold
Required:
a. Walker thinks that the proposed store will sell between 2,200 and 2,600 gallons of paint per month. Compute the amount of operating income that would be earned per month at each of these sales volumes.
Business
1 answer:
LekaFEV [45]2 years ago
7 0

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Fixed costs:

Occupancy costs $ 3,160

Salaries 3,640

Other 1,200

Total=

Variable costs (including the cost of paint) $ 6 per gallon

Selling price= $10 per gallon sold

To calculate the operating income we need to use the following formula:

Income= Number of units* selling price - variable cost - fixed costs

Q= 2,200

Income= 2,200*10 - 2,200*6 - 8,000= $800

Q= 2,600

Income= 2,600*10 - 2,600*6 - 8,000= $2,400

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devlian [24]

Answer:

Prior to 1990, there were a number of nurseries within the valley as well as a few outside that cultivated flowers, but the trend then was more towards producing potted plants, seeds, bulbs and suchlike. There was no large market for cut flowers of the variety available now, in part because there was very little demand due to a lack of market exposure to cut flowers. People in Kathmandu just did not use them on a regular basis. According to nursery owners, there was at that time only a small demand amongst the expatriate community and amongst the Indian community. On November 15 1992 however, the Floriculture Association of Nepal or FAN was formed, and this marked the beginning of the floriculture industry in Nepal.

FAN was formed by 11 nursery owners with the objective of promoting and enhancing the floriculture industry and the emergence of flowers in the Katmandu market can in fact be attributed to the training in flower arrangement that FAN conducted in 1993. Following this training, they initiated the opening of a wholesale market and the support FAN gave to the organization 'Women in Floriculture' project enabled several entrepreneurs to set up flower retail outlets. This supply driven demand resulted in flowers being made available in the market and the market responded by taking up this supply. Business has since improved as demonstrated by the change in demand from around 100 rose stems a day in 1992 to 3000 stems in 2003 and from 100 gladiolus stems  in 1992 to 6000 in 2003. Figures from FAN put the total sale of cut flowers at 10 million in 1992, which went up to 70.2 million in 2003.

The domestic market for cut flowers is in fact increasing according to Suresh Bhakta Shrestha of Standard Nursery in Bansbari. He says that in 1993 150 thousand Nepali Rupees was the total turnover for all the shops that sold flowers in Kathmandu. This figure is now around 80 to a 100 thousand Rupees per month per shop! Latest figures also suggest that there are there are currently around 300 nurseries and 40 retail shops within the Kathmandu valley. This information suggests that floriculture has grown very rapidly and that the flower culture here continues to grow.

Explanation:

6 0
2 years ago
A deculturation strategy of merging two corporate cultures should be applied:A. when employees at the acquired company willingly
klasskru [66]

Answer:

The correct answer is:

A. when employees at the acquired company willingly embrace the cultural values of the acquiring organization.

Explanation:

Normally, employees of a company are so used to their culture and work environment that for them the implementation of new strategies work is a great impact process. Although the workers accept the change in a voluntary basis, for new organizations it  is necessary to apply a plan in order to help employees to meet and get familiar with the new environment and way of working. It is this process of change and progress that is known as deculturation, or implementation and change of different ideas and plans for the working place.

5 0
2 years ago
Faux Trees Company produces artificial Christmas trees. A local shopping mall recently made a special order offer; the shopping
Arlecino [84]

Answer: $‭16,925.9‬0 increase

Explanation:

Company already has the excess capacity to handle this order so the fixed costs will not be included as they would have already been incurred.

Cost of manufacturing the trees would be:

= Variable cost + Fixed cost

= ((51.61 + 3.80 + 1.00 + 8.26 for white tree) * 230 trees) + 5,000 for molds

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= $‭16,925.9‬0 increase

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<em>Note: Options might be for a variant of this question. </em>

7 0
2 years ago
Which spreadsheet type will determine how well a business has done over the past year?
Scilla [17]
A profit and loss statement<span> will determine how well a business has done over the past year.The profit and loss statement is a financial statement which shows revenue, costs and all expenses that happened during a said period of time. Most companies do this quarterly or yearly. </span>
8 0
2 years ago
Read 2 more answers
A $1,000 bond issued by ABC corporation pays a 6% rate of interest, which resulted in an annual amount of interest of $600.
Dovator [93]

Answer:

This question doesn't show what is required to be done with this statement. However, I would provide explanation below on how to approach it.

Explanation:

This type of bond is a coupon-paying bond; meaning, it pays interest to its holders as coupons every year. The coupon rate of 6% can be used to calculate the annual coupon payment in dollars.

Coupon payment amount = Coupon rate * Face value

Coupon rate = 6% or 0.06 as a decimal

Face value = $1,000

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Coupon payment amount = $60

Based on the above calculation, the statement that "annual amount of interest of $600" is incorrect. It should say;

"...annual amount of interest of $60."  

3 0
2 years ago
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