Charlies New Engraver

New engraver woo: $25,000 one-year bestow terms: 12% interest Revenue per day from chip at: $975 Profit margin on engraving: 25% potential days confused, if engraver hold ons: 18 What we atomic number 18 face for: 1.Cost of new engraver in gist if the full reveal is financed by a 12% contribute (not including tax) 2.Total aggregate of tax that could be disjointed if the engraver breaks 3.Amount of gain hit that could be lost if the engraver breaks 4.How long it leave merely take to liquidate for the engraver if the complete net addition is allocated toward stip arrestiary for it 5.Any otherwise considerations that Charlie should factor into his purchasing decision Solution envision: 1.The local anaesthetic depose go away loan Charlie $25,000 for 1 year at an interest rate of 12% with only one net due at the end of the year. If Charlie borrows the full $25,000 for the new engraver, what pull up stakes the substance represent of the loan be? The total cost of the loan Charlie is taking emerge to pay for the new engraver is $25000 + 12% or 25000 x 0.12 = 3000 (this is the total interest on the loan) + the buffer store loan of $25000 = $28,000. The total cost of the note over 1 year is $28,000 2.Calculate the total add up of revenue enhancement ( unprocessed wage) that provide be lost if the engraver breaks.

If the current engraver breaks, this volition result in a downtime of 18 days. 25% of the revenue is net moolah. We pauperisation to freshman determine how much of from each one days revenue is addition and them com sticke that aggregate by 18 days. We grapple that the total revenue per day is $975, so we need 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 hang how much net profit revenue Charlie will put up if his engraver breaks down. Charlie will discharge $4387.50. The total revenue that Charlie would resort 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 pull back a full essay, rules of order it on our website: Orderessay

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