Problem: Ana and Maria decide to open a bagel shop. When they do the calculation, they found out that if they buy from the local bakery they will need airtight containers at a fixed cost of P5000 annually. They can buy the bagels for P2 each. If they make the bagels in-house they will need a small kitchen at a fixed cost of P5500 annually. It will cost them $1 per bagel to make. Question: 1. How many bagels do they need to sell to have? Show your solution thank you!
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Problem:
Ana and Maria decide to open a bagel shop. When they do the calculation, they found out that if they buy from the local bakery they will need airtight containers at a fixed cost of P5000 annually. They can buy the bagels for P2 each. If they make the bagels in-house they will need a small kitchen at a fixed cost of P5500 annually. It will cost them $1 per bagel to make.
Question:
1. How many bagels do they need to sell to have? Show your solution thank you!
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- Suppose, you start your own business which is a pet store. The total cost of purchasing supplies and hiring labor is $50,000 per year. To run the pet store, you quit your job that pays $45,000 per year and use the building that you already own (a building like yours rents out for $60,000 per year). Also, your car payment is $24,000 per year (you may use your car for the business sometimes). What is the total opportunity cost of opening up a pet store for a year?You own a video store and are considering two alternative ways of making home deliveries to your customers. The first is to buy a car for $ 15,000 and pay a part-time employee $ 4,000 a year to deliver the videos. The other is to hire a service. The service will cost $ 6,000 a year. Assuming that the car will have a life of 6 years and that both employee salary and the service costs will increase 3% a year in perpetuity, which alternative is the more economical one? The firm has a cost of capital of 10%. (You can assume no taxes or depreciation) Answer depends on your assumptions regarding the cashflow patterns.You need a new oven for your bakery. Your current oven is worn out so you are trying to decide which one of two ovens to buy as a replacement. Whichever oven you purchase will be replaced after its useful life. Oven A costs $25,000 and costs $3,000 a year to operate over an 8-year life. Oven B costs $20,000 and costs $4,500 a year to operate over a 6-year life. Given this information, which one of the following statements is correct if the applicable discount rate is 10 percent? A) The equivalent annual cost of oven A is -$7,481. B) The equivalent annual cost of oven B is -$8,209. C) Oven A lowers the annual cost by $1,406 as compared to oven B. D) Oven B lowers the annual cost by $1,598 as compared to oven A.
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- You are thinking of opening a small copy shop. It costs $5500 to rent a copier for a year, and it costs $0.03 per copy to operate the copier. Other fixed costs of running the store will amount to $450 per month. You plan to charge an average of $0.10 per copy, and the store will be open 365 days per year. Each copier can make up to 100,000 copies per year. a) For a charge per copy between $0.07 to $0.11 and daily demands of 500, 1000, 1500, and 2000 copies per day, find annual profit. That is, find annual profit for eachof these combinations of charge per copy and daily demand. b) If you charge 0.09 per copy, what daily demand for copies will allow you to break even? c) Graph profit as a function for a charge per copy (between $0.07 to $0.11) for a daily demand of 500 copies; for a daily demand of 2000 copies. Interpret your graphs and label your graphs properlyYou are opening a coffee shop. You estimate the weekly costs of $375 for rent, $2100 for employee costs, and $125 for miscellaneous costs. The ingredients and material cost for each cup of coffee is 0.35 (cents) per cup. 1) Create a cost function for the coffee shop. 2) If the investors estimate that they will be able to sell 1100 cups of coffee per week. How much should they charge per cup to make a profit? Justify your answer and/or explain.Natalie and Curtis have been experiencing great demand for their cookies and muffins. As a result, they are now thinking about buying a commercial oven. They know which oven they want and that it will cost $17,000. The company already has $5,000 set aside for the purchase and will need to borrow the rest. Natalie and Curtis met with a bank manager to discuss their options. She is willing to lend Cookie & Coffee Creations Inc. $12,000 on November 1, 2020, for 3 years at a 5% interest rate. The terms provide for fixed principal payments of $2,000 on May 1 and November 1 of each year plus 6 months of interest. For Part II of the assignment, complete the tasks listed below. Prepare a payment schedule for the life of the note. Prepare the journal entry for the purchase of the oven and the issue of the note payable on November 1, 2020. Prepare the journal entries on May 1 and November 1 for the note. Determine the current portion of the note payable and the long-term portion of the…