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- Scott Power produces batteries. The company has determined its contribution margin to be $8 perbattery and its contribution margin ratio to be 0.4. What is the effect on profits of the sale of oneadditional battery? Of one additional dollar of sales?Your insured lives in an apartment but takes a temporary position in another city and must store some major furniture items in a storage warehouse until he/she returns. In the interim the unfurnished apartment is sublet to a friend. Subsequently, the warehouse is broken into and some of your insured's furniture is stolen. What would a Tenants Comprehensive policy pay? OA) The actual cash value or replacement cost of the property stolen less the policy deductible, subject to the 10% limitation on property temporarily removed. OB) Nothing. The loss is not covered. OC) The actual cash value or replacement cost of all the personal property stolen, less the policy deductible, subject to the policy limit. OD) That proportion of the loss which the value of the property at the warehouse bears to the total value of all of his/her personal property.Your client John Smith ensures his condominium through the office for a comprehensive form subject to a $200 deductible. He calls in a fire damage claim the damage is estimated to be $750 to replace a dishwasher $1000 for the marble countertop and $250 to clean the cabinets how much will he recover under this policy?
- After making a down payment of GH¢4000 for an automobile, the municipality paid GH¢400 per month for 36 months with interest charged at 12% per year compounded monthly on the unpaid balance.(i) What was the original cost of the car?(ii) What portion of the Municipality’s total car payments went toward interest charges?5. A telephone company purchased a microwave equipment for P6 Million with a salvage value of P600,000.00 over a period of 5 years and pay lump sum of P400,000.00 for maintenance cost. Minimum attractive rate of return is 16% annually. Compute the annual cost of investment of purchasing the microwave equipment. A. P1,592,362.54 B. P1,695,452.87 C. P1,803,374.41 D. P1,346,121.25On January 2, 2019, Epson Company signed an 8-year non-cancellable lease for a new machine, requiring P120,000 annual payments at the beginning of each year. The machine has an estimated life of 12 years, with no salvage value. Title passes to Epson at the lease expiration date. Epson uses straight-line method of depreciation for all of its plant asses. Aggregate lease payments have a present value on January 2, 2017, of P864,000 based on an appropriate rate of interest. For 2018, how much should Epson record as depreciation expense for the leased machine?
- A suburban retail property in Arlington, Virginia with 60,000 square feet and 600 surface parking spaces was purchased for $6,000,000 at a cap rate of 6.0% with a 60% LTV interest-only loan at a 6% annual interest rate. If after six years the property appreciated by 60%, what would be the amount of the owner’s equity in the property at that time? a. $6,000,000 b. $2,400,000 c. $3,600,000 d. $9,600,000CASE STUDY 4: JOSE'S AUTHENTIC MEXICAN RESTAURANT "Two bean tacos, a chicken burrito grande, and a side order of Spanish rice, please". Ivan Karetski called his table's order into the kitchen as he prepared the beverage orders. Business was brisk. Karetski liked it that way. Lots of customers meant lots of tips and, as a struggling graduate student, the extra income was greatly appreciated. Lately, however, his tips had been declining. Jose is a small, 58-seat restaurant that offers a reasonably broad range of Mexican food prepared and presented in a traditional Mexican style. It is located in New England in a nature business district on the edge of a large metropolitan area. The site is adjacent to a central artery and offers limited free off-street parking. The restaurant's interior decoration promotes the Mexican theme: The walls appear to be made of adobe and are draped with serapes, the furniture is Spanish- Mexican style, and flamenco guitar and mariachi alternate as background…Yeah LTD purchased equipment on January 1, 2015 at a cost of $171,380. The equipment has an estimated useful life of 9 years and a residual value of $9,650. Crane realized that there was a declining demand for the product being produced by the equipment. Given this indicator of possible impairment, management determined that the recoverable amount of the asset on December 31, 2018 was $95,260. The company uses the straight-line method of depreciation. Record the impairment loss, if any, on December 31, 2018.
- Humera recently acquired the following items and now seeks your advice about any remedies she might have, and any legal issues that might arise, as a result of the following problems:(a) A plasma television set bought from a High Street store for which she paid 35000. The TV never worked but because of the pressures of work she only managed to return it to the store 12 months later. (b) A new play Station which she exchanged for an old one. She bought this at the same time and from the same store as the television. This never worked. (c) A second-hand wristwatch which she bought from a car boot sale and paid 3000 by cheque. It was described as waterproof and the leaflet advertising it claimed it kept excellent time. When she got it home, she found that it was not waterproof and also that it lost more than 1 minute in time every week. (d) A skirt for a dinner party she was planning. In a rush, she picked up the wrong size from the shelf. (e) Some roofing tiles from a…Dog Samuel is the owner of a 2018 Toyota corolla. After a standard service he was informed that the rings in the engine are damaged. There is nothing visibly wrong with the car, the performance is good and there is no excessive smoke. Samuel decides to sell the car without having it repaired. He sells the car to peter for the purchase price of N$ 4000 without disclosing the fact the vehicle needs repair.Shortly afterwards the car breaks down. The garage owner tells him the rings were damaged and the cost of the repair would be N$ 3000.Advise Peter as to his rights and the remedies he may against Samuel.Under the assumptions of newsvendor model for an item, when the selling price is $50, the purchase price is $20, the salvage value is $10, and the cost of loss of goodwill is $15 (all the costs are per item), the cost of underage would be a) $40. b) $45. c) $30. d) $10.
