Gut Bombs sandwich shop pays $5,000 a month in rent space and equipment. It pays each of it 10 workers $2,500 a month and spends
1 answer:
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Answer and Explanation:
The completion of the second, fourth, and fifth columns of the given table is to be shown in the attachment below:
As we know that
Profit = Total revenue - total cost
Total revenue is the revenue earned by the company by multiplying the price with the quantity demanded
While the total cost is
= Fixed cost + variable cost
The marginal revenue comes from
= Change in total revenue ÷ change in quantity
We simply use these formulas in the spreadsheet below.
Answer:
$12106
Explanation:
Below are the possible return options, and investment options given the schedule and period of investment.
REFER TO ATTACHED FILE FOR THE CHAT
According to this chart, Uncle can get maximum return only from option C. So he should invest everything there, however he needs to pay off 24,000 loan at the end of Year 3. Therefore, he needs to invest an amount that will yield him 24000 at then end of year 3, in Plan B.
That can be calculated by 24000/1.36 = 17647
The balance amount can wait till the beginning of year 2, and then all the amount can be invested in Plan C.
The maximum return at the end of 5 years available will be:
Amount invested in Plan C = 90000 - 17647 (amount saved for the loan payment) = 72353
Return from Plan C at the end of 5yrs = 72353 x 1.66 = $ 12106
