Janet is running a painting business. She receives $200,000 payment from buyers at the end of year, at which time she also pays $20,000 fixed cost and 30% of the revenues as a variable cost.1) An opportunity for new business opens for Janet from which she will make $100,000 accounting profits at the end of year. If she takes this new business, then she has to reduce her work for painting business, so the revenue from painting business will drop by 50%. What will be the size of annual economic profit from the new business?2) If the new business will last only for the next five years, so she can take the profits from the new business for five times starting from one year from now, what is the size of the value of the new business for Janet? Assume that the annual interest rate is 3%.
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Business, 22.06.2019 14:30
crow design, inc. is a web site design and consulting firm. the firm uses a job order costing system in which each client is a different job. crow design assigns direct labor, licensing costs, and travel costs directly to each job. it allocates indirect costs to jobs based on a predetermined overhead allocation rate, computed as a percentage of direct labor costs. direct labor hours (professional) 6,250 hours direct labor costs ($1,800,000 support staff salaries ,000 computer ,000 office ,000 office ,000 in november 2012, crow design served several clients. records for two clients appear here: delicious treats mesilla chocolates direct labor 700 hours 100 hours software licensing $ 4,000 $400 travel costs 8,000 1. compute crow design’s direct labor rate and its predetermined indirect cost allocation rate for 2012. 2. compute the total cost of each job. 3. if simone wants to earn profits equal to 50% of service revenue, how much (what fee) should she charge each of these two clients? 4. why does crow design assign costs to jobs?
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Business, 23.06.2019 10:00
Each month hope received her bank statement listing the checks that have cleared her checking account in the month. what are these checks called? a. reconciled b. covered c. outstanding d. cancelled
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Business, 23.06.2019 12:20
What term refers to a formal on-the-job training program in which a worker shadows someone more experienced in the field?refers to a formal on-the-job training program in which a worker shadows someone more experienced in the field.
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Janet is running a painting business. She receives $200,000 payment from buyers at the end of year,...
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