You own a golf course in Florida and you need to determine how many golf carts you need to buy to maximize profits. Please answer the following questions given the information below.
A brand new golf cart costs 2000 rounds of golf and the rate of depreciation is 5%.
The real interest rate is 8%
The expected marginal product of capital is given by MPKf = 1000 – 10K.
a) What is the user cost of capital and what is it expressed in?
b) How many golf carts should you buy to maximize profits (i.e., what is K*)?​
c) Draw a graph (the uc / MPK graph) depicting the state of affairs and label this initial profit maximizing point as point A.​
Now suppose the (local) government with all their financial shortfalls embarks on a campaign to raise revenue to fund the fire department by imposing a so-called "luxury tax" (we know it as τ) equal to 15% of gross revenue. What happens to the profit maximizing number of golf carts? Please show all work and round to two decimal places.

Answer:

a) 260 rounds of golf

b) 74

c) attached below

d) 70 golf carts

Explanation:

a) Calculate the user cost of capital and what is it expressed in

user cost of capital = total depreciation + total interest

= ( rate of depreciation * Golf cart cost ) + ( real interest rate * Golf cart cost )

= ( d + r ) Golf cart cost

= ( 0.05 + 0.08 ) 2000 = 260 rounds of golf

b) determine the number of carts that should be bought to maximize profits

Profits are maximized when User Cost of capital = MPKF

(d +r) Golf cart cost = MP Kf = 1000 – 10K

( 0.05 + 0.08 ) 2000 = 1000 – 10K

260 = 1000 – 10K     ∴ K = ( 1000 - 260 ) / 10 = 74

c) attached below is the required graph

d) Determine what happens to the profit maximizing number of golf carts

User cost of capital ( 1 - t ) = MPK^f

∴ User cost of capital ( 1 - t ) = 1000 – 10K

260 ( 1 - 0.15 ) = 1000 – 10K

305.88 = 1000 – 10K

K=69.41

that is approximately 70 golf carts is been bought to maximize profit

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Wages and salaries....$60,000
Insurance expired...........500
Depreciation.................1,000
Miscellaneous.............10,000
$1,000/month + 10% of quarterly sales over
Rent...........................$40,000
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The company plans to buy some new fixtures for $12,000 cash in March.
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c. Suppose a customer wants to purchase a $140 item and apply the 35% om coupon first and then the sis of coupon How much will the item cost after applying the coupons?
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a. 3 years
b. 4 years
c. 5 years
d. 6 years
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b. 1.4
c. 1.3
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B) Lebeaux's variable costing income statement would show a contribution margin of $330,000.
C) Lebeaux's absorption-costing income statement would show a contribution margin of $330,000.
D) Lebeaux's absorption costing income statement would show a gross margin of $330,000.
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15% $8,351 to $33,950 $16,701 to $67,900
25% $33,951 to $82,250 $67,901 to $137,050
28% $82,251 to $171,550 $137,051 to $208,850
33% $171,551 to $372,950 $208,851 to $372,950
35% Over $372,951 Over $372,951
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Describe TWO ways in which the above law protects citizens against human
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​

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log (wage it ) = βo + 80 yr10, + B1 experit + ai + uit
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uit = idiosyncratic error
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ai uit β1
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Week Demand($)
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2 116
3 118
4 124
5 96
6 119
7 96
8 102
9 112
10 102
11 92
12 91
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Jun. 2 The company purchased land worth $49,000 for an office by paying $6,300 cash and signing a long-term note payable for $42,700.
Jun. 3 The company purchased a portable building with $55,000 cash and moved it onto the land acquired on June 2.
Jun. 4 The company paid $3,000 cash for the premium on an 18-month insurance policy.
Jun. 5 The company completed and delivered a set of plans for a client and collected $6,200 cash.
Jun. 6 The company purchased $20,000 of additional drafting equipment by paying $9,500 cash and signing a long-term note payable for $10,500.
Jun. 7 The company completed $14,000 of engineering services for a client. This amount is to be received in 30 days.
Jun. 8 The company purchased $1,150 of additional office equipment on credit.
Jun. 9 The company completed engineering services for $22,000 on credit.
Jun. 10 The company received a bill for rent of equipment that was used on a recently completed job. The $1,333 rent cost must be paid within 30 days.
Jun. 12 The company collected $7,000 cash in partial payment from the client billed on June 9.
Jun. 14 The company paid $1,200 cash for wages to a drafting assistant.
Jun. 17 The company paid $1,150 cash to settle the account payable created in on June 8.
Jun. 20 The company paid $925 cash for minor maintenance of its drafting equipment.
Jun. 23 The company paid $9,480 cash in dividends.
Jun. 28 The company paid $1,200 cash for wages to a drafting assistant.
Jun. 29 The company paid $2,500 cash for advertisements on the web during June.

Required:
Journalize the above entires.

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Question Financial Statements Marketing & Sales Management Service or Product Line
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How will the salespeople for this business be compensated?
What are the unique features of this business’s merchandise?