Calculate the accounting and economic profit of this firm:
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- The company's revenue is 100 000 rubles. The cost of materials, raw materials is 35 000 rubles, the cost of fuel and energy consumption is 10 000 rubles. The wages of employees are 25 000 rubles. Having a specialist diploma, an entrepreneur could receive a wage as an employee in another company in the amount of 5000 rubles, while he could put the available money (200 000) into the bank at an annual interest rate of 10%. Calculate the accounting and economic profit of this firm.FLY corporation manufactures stamp pad that sells for Php 65.00 each. It costs FLY corporation Php 35,000.00 per year to operate its plant. The sum includes rent, depreciation charges on equipment, and salary payments. If the cost to produce one stamp pad is Php 50.00, how many stamp pad must be sold each year for FLY to avoid taking a lossA certain company pays a bonus to each engineer at the end of each year based on the company’s profit for that year. If the company invested $ 2 million to start up, what rate of return has it made if each engineer’s bonus has been $3000 per year for the past 10 years? Assume the company has six engineers and that the bonus money paid represents 5% of the company’s profit.
- An engineer invest 3 million in concrete making. In return, ge receives ₱235,000.00 per year for 5 years. Compute for the rate of return on investment and the return on investment.The investors of Smith Autos have put up $500,000 to construct a building and purchase all equipment required to wash cars. The investors expect to earn a minimum return of 10% on their investment. If the money to set up the business had been borrowed from a bank instead, the car wash owners would have paid a 10% interest rate. The car wash is open 50 weeks per year and washes 800 cars per week. Whether operative or not, the company must pay $1,000 per week return to investors and $1,000 per week as insurance. The variable costs for the 800 weekly washes includes $1,000 labour cost and $600 materials cost. There are many car washes of equal quality and service in the area and they charge $5 per car wash. a) Based on your knowledge of the different forms of market structure, do you think Smith Autos should stay in business? Show calculations. b) Graphically represent the company's performance, showing profit or loss. c) Another car wash company operates inside a gated community in the…Ngara Solutions is a software company located in Nairobi Kenya. The company earned twenty million Kenya shillings before Interest and Taxes on turnover of sh. 60 million in the most recent period. During the recent period, investment in property, plant and equipment was ten million Kenya shillings, and Amortization and Depreciation was at five million. Working capital investment was 10 percent of the turnover. Ngara Solutions expect earnings before interest and taxes, investment in property, plant and equipment, investment in working capital, amortization and depreciation and turnover to grow at 10 percent per year for ten years. After the ten year, the growth in turnover, earnings before interest and taxes, and working capital investment will decline to stable 3 percent per year, and investment in property, plant and equipment and Amortization and Depreciation will offset each other. Ngara Solutions has an effective tax rate of 30 percent. Assume that the weighted average cost of…
- Yejen Industries Ltd. invested $10,000,000 in manufacturing equipment for producing small wastebaskets. If the company uses an interest rate of 15% per year, the amount of money it will have to earn each year to recover its investment in 7 years is closest to:a. $2,403,600b. $3,530,800c. $3,941,800d. $4,256,300Lotus purchases a new machine for $20,000, and spends $2,000 on sales taxes, $500 for delivery, and $300 for installation of the new machine. What is the amount that will be capitalized on the company’s balance sheet? $22,500 $20,000 $22,000 $22,800SEO is an investment project in which the value of the land is 10,000 dinars, the buildings are 20000 dinars, and the machinery is 15000 dinars. The construction period is one year, if you know that the project has hired a manager with a monthly salary of 1500, and administrative and technical staff number five, each with a salary of 600 dinars per month. The other operational cost of the project is 10,000 dinars annually, and the revenues are 80,000 dinars. The value of the land at the end of the life of the project in the tenth year is 15000 dinars and the depreciation of buildings is 2000 dinars annually, and the machinery is 1000 dinars annually. 10%. According to the above data, calculate the following: Payback period. Net present value of the project. Internal rate of return.
- The books of V-cut Company shows that the business has a fixed cost of 20 million pesos annually. Its main product - Potato Chips has a revenue of PHP 250 per unit and PHP 100 variable cost. (a) Determine the breakeven quantity per year, and (b) Annual profit if 500000 units are sold.Azree an accountant, working for a foreign consultant firm and earning RM 78,000 per year is contemplating giving up his job and set up his own tax consultant firm. He estimates that renting an office would cost RM 780 per month, hiring a secretary with salary RM 1,500 per month and purchasing for required supplies would cost him RM 10,000 per annum. He estimated that his total revenues for the year would be RM 120,000. a) Calculate the explicit cost and implicit costThe initial investment of the owner in his business is ₱100,000.00 At the end of each year, the total assets of the business amounted to ₱125,000.00 this consists of ₱70,000.00 cash. On the first month fbits operations, the owner purchased an equipment worth ₱50,000 she paid 30,000 as the down payment and the rest will be paid in the succeeding month. She received 10,000.00 cash from its clent and paid an expenses of 4,000.00. Show how the transaction affect the accounting equation