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natulia [17]
2 years ago
5

Cheapo Manufacturing decided to lease a 100,000 square foot facility. What type of lease will they most likely sign? A net lease

, A sufferance lease, A percentage lease, or a A permanent lease??
Business
1 answer:
Alinara [238K]2 years ago
6 0

Net lease type will be the most likely sign by Cheapo manufacturing.

<u>Explanation:</u>

Single net leases, which are frequently alluded to as a Net or N rent, are not as regular in the rental world. In a rent this way, the proprietor moves a negligible measure of hazard to the occupant, who covers the property charges. This implies some other cost, for example, protection, support and fixes, and utilities—are the proprietor's obligation. The landowner is likewise liable for any support and additionally fixes that must be finished over the span of the rent inside the property.  

Occupants under a solitary net rent wind up paying marginally lower lease than with a standard rent as a result of the additional expense of property charges. In any case, a higher rental installment doesn't reduce the landowner's obligation regarding staying up with the latest.

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As the average hourly wage increases from $22 per hour to $28 per hour, the quantity demanded of Americano coffees increases fro
KIM [24]

Answer:income elasticity of demand for Americano coffees = 0.55

Explanation:

Income Elasticitity of demand = percentage change in quantity demanded / Percentage change in income

which can easily be calculated using

Income Elasticitity of demand =(New quantity  demanded - old quantity demanded/ old quantity)/(New Income - Old income /old income.

new income = $28

old income=$22

new quantity= 3450

old quantity=3000

Bringing down our formulae

Income Elasticitity of demand =(New quantitry  demanded - old quantity demanded/ old quantity)/(New Income - Old income /old income.

= {(3450-3000) /3000} /{(28-22)/22} =(450/3000) /(6/22) = 0.15/0.2727=0.55

income elasticity of demand for Americano coffees = 0.55

Here , we can see that we have a positive income elasticity of demand therefore Americano coffees is a normal good as an increase in income will lead to a rise in demand.  Also, the income elasticity of demand for this commodity is less than 1, therefore it is also a necessity good.

6 0
2 years ago
You have $5,000 to deposit. Regency Bank offers 15 percent per year compounded monthly (1.25 percent per month), while King Bank
aliya0001 [1]

Answer:

Regency Bank

A = $98577.46

king Bank

A = $81832.68

Explanation:

Given Data:

principle amount  =$ 5000

rate of interest = 15%

n =12 {compounded months}

t = 20 year

for Regency Bank

investment amount obtained as

A =P\times [1 + \frac{r}{n}]^{nt}

A = 5000 [1 + \frac{0.15}{12}]^{12\times 20}

A = $98577.46

for King Bank

Investment amount obtained as

A =P\times [1 + \frac{r}{n}]^{nt}

Here n = 1

A = 5000 [1 + \frac{0.15}{1}]^{1\times 20}

A = $81832.68

3 0
2 years ago
Superior Micro Products uses the weighted-average method in its process costing system. Data for the Assembly Department for May
JulijaS [17]

Answer

(a) cost per equivalent unit

Item                                Material         Labour      Overheads

Cost per EU($)           84.15         34.25      172.25

b) Total cost per equivalent = $290.65

Explanation:

<em>The weighted average method of valuation of work in progress does not separate opening work-in progress from the newly introduced. </em>

<em>The cost per equivalent units using  this method is computed by dividing the total equivalent units by the cost element. This repeated for each of cost element categories.</em>

Item                                Material         Labour      Overheads

Opening WIP                  36,900          61,650           299,715

Cost added                    <u>223,965</u>          <u>41,100</u>          1<u>99,810</u>

Total cost($)     a             260,865   102,750     499,525

Equivalent unit  b             3,100             3,000            2,900

Cost per EU($) (a/b)         84.15         34.25      172.25

Total cost per equivalent unit =   84.15 + 34.25 + 172.25

Total cost per equivalent=  $290.65

<u />

8 0
1 year ago
If your risk-aversion coefficient is A = 4.4 and you believe that the entire 1926–2015 period is representative of future expect
tamaranim1 [39]

Answer:

=> fraction of the portfolio that should be allocated to T-bills = 0.4482 = 44.82%.

=> fraction to equity = 0.5518 = 55.18%.

Explanation:

So, in this question or problem we are given the following parameters or data or information which are; that the utility function is U = E(r) – 0.5 × Aσ2 and the risk-aversion coefficient is A = 4.4.

The fraction of the portfolio that should be allocated to T-bills and its equivalent fraction to equity can be calculated by using the formula below;

The first step is to determine or Calculate the value of fraction to equity.

Hence, the fraction to equity = risk premium/(market standard deviation)^2 - risk aversion.

= 8.10% ÷ [(20.48%)^2 × 3.5 = 0.5518.

Therefore, the value for fraction of the portfolio that should be allocated to T-bills = 1 - fraction to equity = 1 - 0.5518 =0.4482 .

8 0
2 years ago
You are economic consultant for Jack, who farms raw cotton in a perfectly competitive market. One day he gives you the following
Diano4ka-milaya [45]

Answer

The answer and procedures of the exercise are attached in a microsoft excel document.  

Explanation  

Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.  

Download xlsx
7 0
2 years ago
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