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Question: Cottage Industries Ltd expects to sell 500 baskets a month. The business has the opportunity to rent a basket-making machine. Doing so would increase the total fixed costs of operating the workshop for a month to £3,000. Using the machine would reduce the labour time to half an hour per basket. The basket makers would still be paid £10 an hour.
(a) How much profit would the business make each month from selling baskets
(i) assuming that the basket-making machine is not rented, and
(ii) assuming that it is rented?
(b) What is the BEP if the machine is rented?
(c) What do you notice about the figures that you calculate?
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ernst electrical has 9000 shares of stock outstanding and no debt. the new cfo is considering issuing 80000 of debt
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Use the Library to go to the SBA US Government, Small Business Administration web site. There is a vast amount of information available on this site.
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The company's net fixed assets were $40,331, and other assets were $1,822. GenX had accounts payable of $10,604, notes payable of $2,886, common stock of $22,400, and retained earnings of $14,368. How much long-term debt did the firm have?
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