Answer:
The right solution is "Not Deductible".
Explanation:
If everyone's investigation for a company or starting a company fails, costs classified into two broad categories besides you:
- Unless you're a person and your effort to start a company isn't successful, there are 2 kinds of investments you have had in attempting to develop yourself in the company.
- The expenses clients used to have before you made an intention to open a particular business. These would be personal but non-deductible charges. They include other expenses incurred throughout a regular search for something like a company or equity investment opportunity or perhaps a thorough investigation into it.
- The expenditures you have in your effort to purchase or launch a particular venture. Such charges are capital expenditures, and that as a capital loss, you will subtract them.
Answer:
45.69%
Explanation:
The formula to compute the accounting rate of return is shown below:
= Annual net income ÷ average investment
where,
Net income is
= Annual revenues - annual operating expenses
= $120,000 - ($38,000 + $232,000 ÷ 8 year)
= $120,000 - ($38,000 + $29,000)
= $53,000
And, the average investment would be
= (Initial investment) ÷ 2
= ($232,000) ÷ 2
= $116,000
Now put these values to the above formula
So, the rate would equal to
= $53,000 ÷ $116,000
= 45.69%
Answer:
(3) $3,750,000
Explanation:
The computation of the expect monthly sales to be as high is shown below:
Given that
Sales per month = $300,000
Royalty payments = 8% of sales
So, the expected monthly sales would be
= Sales per month ÷ Royalty payments percentage
= $300,000 ÷ 8%
= $3,750,000
We simply divided the sales per month by the royalty payment percentage i.e 8%
Answer:
3. Distribution
Explanation:
Distribution refers to making a product available to customers for purchase by transferring it from the source of manufacture to the retailers. Distribution is one of the essential components of marketing mix.
Channels to distribution are whole sellers, retailers, brokers and middlemen, and direct sales. Distribution entails all activities relating to supply of finished products to customers.
In the given case, Leon's work involves transportation of metal components as well as efficient movement of the finished systems from manufacturing unit to the warehouses and subsequently to distribution trucks. These represent activities of distribution.
