Tim urban, owner/manager of urban’s motor court in key west, is considering outsourcing the daily room cleanup for his motel to duffy’s maid service. tim rents an average of 50 rooms for each of 365 nights (365 3 50 equals the total rooms rented for the year). tim’s cost to clean a room is $12.50. the duffy’s maid service quote is $18.50 per room plus a fixed cost of $25,000 for sundry items such as uniforms with the motel’s name. tim’s annual fixed cost for space, equipment, and supplies

Evelyn would like to open a small business that is categorized as a being in the distribution industry. to do this she could open a establishment.

You and your new australian bride matilda, are applying for a loan and are required to submit a balance sheet with your net worth. you own a 2008 toyota camry that you bought last month for $9,995. the kelly blue book value for this car is $13,995. you owe $8,150 on the car loan for the camry. you pay off your visa credit card every month and have not paid any credit card interest this year. the current visa credit card balance is $3,522, and the next statement is due in 15 days. you have a student loan balance of $6,500. you presently have $425 in your checking account and $1,540 in your savings account. you own 100 shares of ibm stock that you purchased for $85.50 per share. one share of ibm is now selling for $158.42. you own computers and other electronics that you purchased for $4,100 but could probably sell today on e-bay for $1,800. your gross income is $80,000 per year. what is your current net worth? (see wb ch. 2 example 2.3)

Sonic corp. manufactures ski and snowboarding equipment. it has estimated that this year there will be substantial growth in its sales during the winter months. it approaches the bank for credit. what is the purpose of such credit known as? a. expansion b. inventory building c. debt management d. emergency maintenance