Question Completion Status: QUESTION ST You have noticed a nd listing a motel for sale. After doing some research, you estimate that the 20 rooms can be rented for $60 per day with an occupancy rate of 80% per year. You have found a management company that will run the motel and take care of daily housekeeping for 10% of the rents. You estimate that repairs and maintenance costs will be $3,000 per month and that other cash expenses will be $4,000 per month. You plan to sell the motel at the end of the third year for $500,000 How much are annual net cash flows? Ignoring taxes, how much would you pay for the motel to eam exactly 20% on you O A. $ 487,356 OB. $ 231,360 OC. $ 776,708 OD. $ 289,360 O E none of the listed choices QUESTION 52 Which account will Never be included in a closing journal entry? O A Cost of Sales OB. Interest expense OC Sales OD. Retained Earnings O E. Allowance for Doubtful Accounts QUESTION 53 estimates for Jetson's Dynamics makes scooters. The company has three models of scooters, the Astro, the Elroy and the Rosie. The next year. (All projections are on a per scooter basis). Astro Elroy Rosie Selling Price $150 $200 $300 Variable Costs 60 100 180 40% Sales Mix 50% ON Estimated Sales are $ 60,000,000 Estimated fixed costs are $ 18,000,000 The estimated weighted average contribution marginis O A 59.0% OB. 47.7% C. 40.0% OD. none of the listed choices OE. 54.0% QUESTION 54 Jetson's Dynamics makes scooters. The company has three models of scooters, the Astro, the Elroy and the Rosie. The controller has prepared the following estimates for next year. (All projections are on a per scooter basis). Astro Elroy Selling Price Variable Costs $150 60 $200 Sales Max 50% Estimated Sales are $ 60,000,000 Estimated fixed costs are $ 18,000,000 What will happen to total profit if Jetson drops Rosie? A. The Foxed Costs will increase by $2,400,000 OB, none of the listed choices C. The Fixed costs will decrease by $2,400,000 OD. Profits will decrease by 56,000,000 O E. Profits will decrease by $2,400,000