2 pages/≈550 words
Literature & Language
Managerial Accounting (Math Problem Sample)
the paper involved some calculations and explanation of the mathssource..
Initial cost of one lift= $2, cost of installation = $1.3. Initial cost of one lift is buying price of the lift + cost of installation = 2 + 1.3 = $3.3. Maintenance cost of the lift per day is $500, maintaining the lift for the 200 days will amount to 500 * 200 =$100,000. Lift tickets per day = $55, the extra capacity is required only for 40days. The lift allows 300 additional skiers. Thus income from the lift in one year will amount to, 55 * 40* 300 = $660,000.
This is a profitable investment since the lodge will generate $ 660,000. The lodgeâ€™s cash flow will grow by a sizable amount placing at a better position to access funds. 660,000 â€“ 100,000 = 560,000 $560,000 is the margin generated by the lift to the lodge. Before-tax rate of...
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