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JulijaS [17]
2 years ago
9

Go Fly A Kite is considering making and selling custom kites in two sizes. The small kites would be priced at $11.90 and the lar

ge kites would be $24.90. The variable cost per unit is $5.75 and $12.50, respectively. Jill, the owner, feels that she can sell 3,300 of the small kites and 1,910 of the large kites each year. The fixed costs would be $2,120 a year and the depreciation expense is $1,600. The tax rate is 40 percent. What is the annual operating cash flow
Business
1 answer:
Akimi4 [234]2 years ago
8 0

Answer:

See below

Explanation:

Given the above information,

Sales

= ($11.90 × 3,300) + ($24.9 × 1,910)

= $39,270 + $4,7559

= $86,829

Total variable cost

= ($5.75 × 3,300) + ($12.5 × 1,910)

= $18,975 + $23,875

= $42,950

Contribution margin = $43,979

Fixed cost = ($2,120)

Depreciation = ($1,600)

EBIT = $40,259

Tax = ($40,259 × 0.40) = $16,104

Depreciation = $1,600

Net operating cash flow = $22,555

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Levart [38]

Answer: A. Government's borrowing to refinance the debt may lead to higher interest rates. Higher interest rates reduce investment spending, leaving future generations with a smaller stock of capital goods.

Explanation:

When the Government replaces a debt with another debt by means of Refinancing, they will probably be charged a higher interest rate because replacing debt with another debt is not generally ideal.

A higher interest rate means a higher repayment amount. Should the government keep paying higher and higher rates for debt, they'll have to reduce their spending on Investment. Investment creates Capital Goods such as machines and equipment. A reduction in Investment spending therefore reduces future generations' access to capital goods.

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2 years ago
What risks does southwest face? can it continue to thrive as a low-cost airline when tough economic times hit or other airlines
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As of now Southwest is a stage in front of their rivals. They can ascribe this to the choices they made to limit their cost, their clients have seen the advantages of these choices. Since flights run assuming regardless of the possibility that they are half full, the organization goes out on a limb of gaining low income for that flight. Since the organization remains in an endless value war with its rivals they are compelled to keeps ticket costs low, this could bring about lost income and a plausibility of cutting overhead and creation cost. This could likewise impact the planning of workers. The dread of expanding oil costs still stays high on the organization's radar.
4 0
2 years ago
The QuickBooks Online ecosystem gives you and your clients access to a wide range of 1.__________ to help 2.___________ their bu
kupik [55]

The Quick Book Online ecosystem gives you and your client access to a wide range of apps to help increase productivity in a business.

Explanation:

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6 0
2 years ago
Assume Italy and Niger can both produce grain and dates, and that the only limited resource is the farming labor force, meaning
ehidna [41]

Answer:

absolute on grain: neither, both produce 10

comparative grain: Italy as renounce to less tonds of dates: 0.5 to 2.5

absolute dates: Niger 25 to 5

comparative dates: Niger as it cost 0.4 tonds of grain to produce 1 ton of dates.

Explanation:

For the absolute, we will check which yield the better number.

Fot the comparative, we will check the opportunity cost:

<em>output/potential output of another product</em>

<em />

opp cost grain in Italy: 5/10 = 0.5 tons of dates

opp cost grain in Niger: 25/10 = 2.5 tonds of dates

opp cost dates in Italy: 10/5 = 2 tonds of grain

opp cost dates in Niger 10/25 = 0.4 tonds of grain

6 0
2 years ago
Drew buys 100 shares of Balsamic Corporation for $23 per share. Over the next year, Balsamic pays four quarterly dividends of 35
lara31 [8.8K]

Answer:

14.78%

Explanation:

Drew's total investment = $23 x 100 = $2,300

during the year he received 4 dividend payments = 4 x 100 shares x $0.35 per share = $140

since the stock price increased, Drew's investment is now worth $2,500

if Drew was to sell his stocks, he would earn $200 + the $140 received as dividends = $340

Drew's annual return = $340 / $2,300 = 14.78%

4 0
2 years ago
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