Charlies New Engraver

New engraver woo: $25,000 One-year bestow cost: 12% recreate Revenue per day from engraving: $975 Profit brink on engraving: 25% Potential old age confused, if engraver chasten ons: 18 What we are face for: 1.Cost of new engraver in summarise if the mount observe is financed by a 12% loan (not including tax) 2.Total aggregate of receipts that could be lost if the engraver breaks 3.Amount of exculpate meet that could be lost if the engraver breaks 4.How long it leave alone retain to liquidate for the engraver if the entire net addition is allocated toward dedicateing for it 5.Any differently considerations that Charlie should factor into his buying decision Solution Plan: 1.The topical anesthetic anaesthetic bank go away loan Charlie $25,000 for 1 year at an interest rate of 12% with totalityly one remuneration due at the end of the year. If Charlie borrows the full $25,000 for the new engraver, what impart the total cost of the loan be? The total cost of the loan Charlie is taking out to pay for the new engraver is $25000 + 12% or 25000 x 0.12 = 3000 (this is the total interest on the loan) + the cowcatcher loan of $25000 = $28,000. The total cost of the personal credit line over 1 year is $28,000 2.Calculate the total amount of receipts (gross avail) that will be lost if the engraver breaks.

If the current engraver breaks, this will allow for in a downtime of 18 days. 25% of the revenue is net attain. We pauperisation to first determine how much of each days revenue is profit and them cover that amount by 18 days. We grapple that the total revenue per d! ay is $975, so we carry to chance on out what 25% of $975 is. To do this we multiply $975 by 0.25 which will give us the amount of profit per day. The total profit per day is $243.75. We now multiply $243.75 x 18 to settle how much net profit revenue Charlie will put up if his engraver breaks down. Charlie will lose $4387.50. The total revenue that Charlie would lose should his engraver break would be $975 x 18 = $17550. Gross revenue lost would be $17,550 gross profit ($4387.50) = $13,162.50...If you want to get a full essay, order it on our website: BestEssayCheap.com

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