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-BARSIC- [3]
2 years ago
14

A company owns an empty office building and is deciding how to use it next year. It would cost $100,000 to staff the office and

$15,000 for equipment. The revenues would be $160,000. Meanwhile, it could rent the office to another company for $75,000 in revenues. In both cases, the company must pay $5,000 for the building's electricity.
Required:
a) If the company is seeking to maximize its economic profit, which course should it pursue and what is the outcome?
Business
1 answer:
Galina-37 [17]2 years ago
5 0

Answer:

It is more profitable to rent the office. Income will increase by $30,000

Explanation:

Giving the following information:

It would cost $100,000 to staff the office and $15,000 for equipment. The revenues would be $160,000.

Rent= $75,000 in revenues.

We need to calculate the most profitable decision:

Option A:

Income= 160,000 - 100,000 - 15,000= 45,000

Option B:

Rent= 75,000

It is more profitable to rent the office.

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A transaction is positive if there is a sale and negative when there is a return. each time a customer uses a credit card for a
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Answer:

A is f(x)= 1.5(x)

B: Find a graphing calculator to graph it.  (i.e. Desmos Graphing Calculator)

c:  The domain and range are both negative infinity to positive infinity.

Explanation:

5 0
2 years ago
Item 8 In a movie's opening weekend, 879,575 tickets are sold in 755 theaters. The average cost of a ticket is $9.50. What is th
Digiron [165]

Answer:

the average amount of money is 1,165

Explanation:

The computation of the average amount of money i.e. earned by each theater is shown below:

= Total number of tickets sold ÷ number of theaters

where,

The Total number of tickets sold is 879,575

And, the number of theaters is 755

Now place these values to the above formula

So, the average amount of money is

= $879,575 ÷ 755

= 1,165

hence, the average amount of money is 1,165

4 0
2 years ago
Chiptech, Inc., is an established computer chip firm with several profitable existing products as well as some promising new pro
vaieri [72.5K]

Answer:

$11

Explanation:

"The required return for the computer chip industry is 15%, and the company has just gone ex-dividend (i.e., the next dividend will be paid a year from now, at t 1) (Round your answer to 2 decimal places.)"

g = ROE*b

g = ROE * (1-Payout ratio)

g = 20% * (1-0.5)

g = 10%

P0 = D1/k-g

P0 = D0(1+g) / k-g

P0 = 0.5(1+0.10) / (0.15+0.10)

P0 = $11

S0, the market price of Chiptech stock is $11

7 0
2 years ago
Nakama Corporation is considering investing in a project that would have a 4 year expected useful life. The company would need t
Fed [463]

Answer:

We have to assume specific tax rate to come up with the income tax expenses. Let assume the tax rate is 30%.

The income tax expense in year 2: $53,400.

Explanation:

We have:

Depreciation expenses of the equipment in the second year = (Initial cost - salvage value) / Useful life = (168,000 - 0)/4 = $42,000.

Profit before tax in year 2 = Sales in year 2 - operating expenses in year 2 - Depreciation expenses in year 2 = 520,000 - 300,000 - 42,000 = $178,000.

Income tax expense in year 2 = Profit before tax in year 2 x tax rate = 178,000 x 30% = $53,400.

So, the answer is $53,400.

5 0
2 years ago
Following top-down methods is used when projects closely follow past projects in regard to features and costs of those features,
Hatshy [7]

Answer: Apportionment

Explanation: Apportionment is also known as analogous estimating which is used when projects closely follow past projects in features and costs. As a result, in addition to good historical data, estimates regarding project feature, cost and duration can be made quickly, with little effort and reasonable accuracy to various segments of the current project. The method of apportionment is very common in projects that are relatively standard, but with little variation or customisation.

4 0
2 years ago
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