4. Mr. B is the owner of a hardware store. His ten wheeler truck is under going major repair. Mr. B badlyneeded 1,000 bags of cement to fill the orders of his loyal customers. The 1,000 bags of cement should bepicked up from the production site in Bulacan. If he will hire a trucking service, he would only break-even withall the cost of trucking against the profit he would make. What do you think Mr. B decided?5. If you are an owner of a restaurant and has an extra cash of 500,000.00. Where would you invest you extramoney below? Why?1. Invest the money in a time deposit that would yield 87,500.00 for the next five years.2. Invest the money in a secured bond that would guarantee return of 175,000.00 for the next five years3. Invest the money in a stock market that would yield 500,000.00 for the next five years but the risk is veryhigh that historically only 50% chance of being successful4. Invest the money in Boer Deer Farm Investment Scheme that offers double your money in just two years

Note: Hi! Thank you for the question As per the honor code, We’ll answer the first question since…

4. Mr. B is the owner of a hardware store. His ten wheeler truck is under going major repair. Mr. B badly needed 1,000 bags of cement to fill the orders of his loyal customers. The 1,000 bags of cement should be picked up from the production site in Bulacan. If he will hire a trucking service, he would only break-even vwith all the cost of trucking against the profit he would make. What do you think Mr. B decided?

4. Mr. B is the owner of a hardware store. His ten wheeler truck is under going major repair. Mr. B badly needed 1,000 bags of cement to fill the orders of his loyal customers. The 1,000 bags of cement should be picked up from the production site in Bulacan. If he will hire a trucking service, he would only break-even vwith all the cost of trucking against the profit he would make. What do you think Mr. B decided?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

A businessman wants to set up a factory in an area. Now, The entrepreneur is looking for the best regional alternative that he thinks will profitable for his business, based on the survey results, area A has a probability of 0.8 to get a profit of IDR 5,000,000, if the company fails then will experience a loss of IDR 650,000. The second area is area B with 0.7 probability to get a profit of Rp. 5,500,000, if the company fail, you will get a loss of IDR 700,000. Based on this data, which locations are most advantageous?
1) Suppose you work for Meijer, a large grocer headquartered in Michigan. 20 years ago, Meijer bought a parcel of land on the outskirts of Lafayette, Indiana. It is currently being rented to a farmer. They intended to build a new store on the lot after a proposed new highway was complete. However, when the new highway was built it went in a different direction and now they must decide whether to build the new store. You ask around and find the following information from the following departments (all numbers are in thousands of dollars): The sales department tells you: Annual Revenue: The operations department tells you: Inventory Required on Shelves: Annual Cost of Goods Sold: Annual Cost of Running Store: Annual Allocated Overhead from HQ: The forecasting department tells you: Loan to fund construction: Interest Rate: Weighted Average Cost of Capital: Depreciation Schedule: Tax Rate: $2400 Current Market Value of Land: Current Pre-Tax Income from renting land out: Cost of…
Can somebody please help me?!
Darren Mack owns the "Gas n' Go" convenience store and gas station. After hearing a marketing lecture, he realizes that it might be possible to draw more customers to his high-margin convenience store by selling his gasoline at a lower price. However, the "Gas n' Go' is unable to qualify for volume discounts on its gasoline purchases, and therefore cannot sell gasoline for profit if the price is lowered. Each new pump will cost $95,000 to install, but will increase customer traffic in the store by 13,000 customers per year. Also, because the "Gas n' Go" would be selling its gasoline at no profit, Darren plans on increasing the profit margin on convenience store items incrementally over the next five years. Assume a discount rate of 8 percent. The projected convenience store sales per customer and the projected profit margin for the next five years are given in the table below. i Year 1 23 $5 $5.50 $7 $9 $11 a. What is the NPV of the next five years of cash flows if Darren had four new…
Recently, the owner of a Trader Joe's franchise decided to change how she compensated her top manager. Last year, she paid him a fixed salary of $65,000, and her store made $120,000 in profits (not counting payment to her top manager). She suspected the store could do much better and feared the fixed salary was causing her top manager to shirk on the job. Therefore, this year she decided to offer him a fixed salary of $30,000 plus 15 percent of the store's profits. Since the change, the store is performing much better, and she forecasts profits this year to be $280,000 (again, not counting the payment to her top manager). Assuming the change in compensation is the reason for the increased profits, and that the forecast is accurate, (a) Which compensation method (the old one or the new one) will the manager prefer? Please explain why. (b) Which compensation method (the old one or the new one) would the owner of the franchise prefer? Please explain why. (c) If there was another…
Roxy Theatre is a monopoly. Roxy discovers that at the price that maximizes its profit, seniors are not coming to the theatre. So Roxy conducts a survey. The table reveals the results of the survey. Roxy decides to price discriminate among patrons who attend on weekends and those who attend on weekdays. Price (dollars per ticket) Weekends Quantity demanded (tickets per week) Weekdays 18.00 0 15.00 100 0 12.00 200 0 If the marginal cost of a show is $6.00, what price does Roxy charge on weekdays and what price does Roxy change on weekends to maximize profit? 9.00 300 0 6.00 300 200 3.00 300 300 If the marginal cost of a show is $6.00, Roxy will maximize profit by charging on weekdays and charging. a ticket on the weekend. a ticket
R, a new client of yours, is a self employed catere. R drives his personal van when delivering catered meals to customers. You asked him to provide the amount of business miles driven using his vehicle. You are planning on using the standard mileage method to calculate R deduction for transportation costs. R responded by saying " well, I don't keep track of my miles. I guess I drove around 3000 miles last year for the business " What would you say to him?
George is going shopping for a new car to replace his old one. Which of these costs would not be relevant in deciding between cars: O the cost to operate the new vehicles (e.g., miles per gallon for each car) the estimated trade in value of the new vehicles the cost maintenance warranty offered by each dealer the fixed title fee for a new auto