Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please show work MUST SHOW ALL APPROPRIATE CALCULATIONS WITH FORMULAS**** An international investor Mr. Tom had invested $500,000 at ABC International Bank at 10% return

image text in transcribed

image text in transcribed

please show work

MUST SHOW ALL APPROPRIATE CALCULATIONS WITH FORMULAS**** An international investor Mr. Tom had invested $500,000 at ABC International Bank at 10% return on investment. However, he decided to take out the $500,000 from the bank to operate a software business that he will operate only 50 weeks of the year. He exports 800 of the software per weck. Tom spends $1,000 per week on basic software maintenance, employs five people at $200 each per week, and pays for materials and electricity $600.00. Tom sells each software pack for $5.00 per pack la. List and itemize the fixed input and cost per week (10points) b. What is the Total Fixed Cost (Spoints) (Spoints) b. What is the Total Variable Cost (Spoints) 3. How much profit will Tom make per week? (12points) 4. Considering your calculations what would you advise Mr. Tom(EXPLAIN CLEARLY)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Business Valuation And Bankruptcy

Authors: Ian Ratner, Grant T. Stein, John C. Weitnauer

1st Edition

0470462388, 978-0470462386

More Books

Students also viewed these Finance questions