We've talked a lot about "fixed" and "variable" expenses. We've talked about the way these expenses impact your budget and your savings. We also talked about one big thing you can do about variable expenses that you cannot usually do about your fixed expenses. What was the big thing you can do?
Answers
Answer:c
Explanation:
Related Questions
Sunland Corp. prepared the following reconciliation of income per books with income per tax return for the year ended December 31, 2021: Book income before income taxes $2760000 Add temporary difference Construction contract revenue which will reverse in 2022 246000 Deduct temporary difference Depreciation expense which will reverse in equal amounts in each of the next four years (974400) Taxable income $2031600 Sunland's effective income tax rate is 25% for 2021. What amount should Sunland report in its 2021 income statement as the current provision for income taxes
Answers
Answer:
the current provision for income tax is $507,900
Explanation:
The computation of the current provision for income tax is shown below:
= (Income before income tax + temporary difference - depreciation expense) × effective income tax rate
= ($2,760,000 + $246,000 - $974,400) × 0.25
= $507,900
Hence, the current provision for income tax is $507,900
The same would be considered and relevant
Journalizing Cash Payments Transactions
Enter the following cash payments transactions in a general journal:
Sept. 5 Issued Check No. 318 to Georgetown Inc. for merchandise purchased
August 28, $5,500, terms 2/10, n/30. Payment is made within the discount
period.
12 Issued Check No. 319 to Martin Company for merchandise purchased
September 2, $7,500, terms 1/10, n/30. A credit memo had been received
on September 8 from Martin Company for merchandise returned, $500.
Payment is made within the discount period after deduction for the return
dated September 8.
19 Issued Check No. 320 to Professional Partners for merchandise purchased
August 20, $4,000, terms n/30.
27 Issued Check No. 321 to Dynamic Data for merchandise purchased
September 17, $9,000, terms 2/10, n/30. Payment is made within the
discount period.
Answers
Answer:
Journalizing Cash Payments Transactions
General Journal
Sept. 5 Debit Accounts payable (Georgetown Inc.) $5,500
Credit Cash $5,390
Credit Cash Discounts $110
To record the issue of Check No. 318 for merchandise purchased August 28 on terms 2/10, n/30, including discounts.
Sept. 12 Debit Accounts payable (Martin Company) $7,000
Credit Cash $6,930
Credit Cash Discounts $70
To record the issue of Check No. 319 for merchandise purchased September 2 on terms 1/10, n/30.
Sept. 19 Debit Accounts payable (Professional Partners) $3,400
Credit Cash $3,400
To record the issue of Check No. 320 for merchandise purchased August 20 on terms n/30.
27 Debit Accounts payable (Dynamic Data) $9,000
Credit Cash $8,820
Credit Cash Discounts $180
To record the issue of Check No. 321 for merchandise purchased September 17 on terms 2/10, n/30.
Explanation:
a) Data and Analysis:
Sept. 5 Accounts payable (Georgetown Inc.) $5,500 Cash $5,390 Cash Discounts $110 Issued Check No. 318 for merchandise purchased August 28 on terms 2/10, n/30.
Sept. 12 Accounts payable (Martin Company) $7,000 Cash $6,930 Cash Discounts $70 Issued Check No. 319 for merchandise purchased September 2 on terms 1/10, n/30.
Sept. 19 Accounts payable (Professional Partners) $3,400 Cash $3,400 Issued Check No. 320 for merchandise purchased August 20 on terms n/30.
27 Accounts payable (Dynamic Data) $9,000 Cash $8,820 Cash Discounts $180 Issued Check No. 321 for merchandise purchased September 17 on terms 2/10, n/30.
what is mean by vocational training?
Answers
Answer:
Hope this helps
Explanation:
It means a instrustional program or courses that focus on the skills required for a particular job function or trade.In vocational training educates and prepares students for specific careers, disregarding transitional unrelated academic subjects.
Consider a hypothetical economy where there are no taxes and no international trade. Households spend $0.50 of each additional dollar they earn and save the remaining $0.50. If there are no taxes and no international trade, the oversimplified multiplier for this economy is __________
Suppose that the price level in our economy remains the same and that there is still no international trade. Now, however, the government decides to implement an income tax of 5% on each dollar of income. The MPC and MPS, however, remain the same as before. In this case, after accounting for the impact of taxes, the multiplier in this economy is ___________, and a $200 billion decrease in investment spending will lead to a billion in output.
Answers
Answer:
i) 2
ii) 1.9
iii) $200 billion decrease in investment will lead to a $380 billion decrease in output
Explanation:
i) Determine the oversimplified multiplier for this economy
MPC value of the economy = 0.5
spending multiplier = 1 - / 1 - MPC VALUE )
∴ oversimplified multiplier = 1 / 0.5 = 2
ii) Given that the Government implement an income tax of 5%
The Multiplier of the economy = 1 / [ 1 - MPC (1-t) ]
= 1 / [ 1 - 0.5(1-0.05 )]
= 1 / ( 1 - 0.475 ) = 1.9
iii) $200 billion decrease in investment will lead to a $380 billion decrease in output
total change in output = 1.9 * 200 =$ 380
Which of the following reflect the balances of prepayment accounts prior to adjustment?
Balance sheet accounts are understated and income statement accounts are understated
Balance sheet accounts are overstated and income statement accounts are overstated
Balance sheet accounts are understated and income accounts are overstated
Balance sheet accounts are overstated and income statement accounts are understated
Answers
Answer:
The answer is Balance sheet accounts are overstated and income statement account are understated.
Explanation:
You are considering two different methods for constructing a new warehouse site. The first method would use prefabricated building segments, would have an initial cost of $6.5 million, would have annual maintenance costs of $150,000, and would last for 25 years. The second alternative would employ a new carbon-fibre panel technology, would have an initial cost of $8.2 million, would have maintenance costs of $650,000 every ten years, and is expected to last 40 years. Both buildings would be in CCA Class 1 (at a rate of 4 percent) and it is expected that each would have a salvage value equivalent to 25 percent of its construction cost at the end of its useful life. The discount rate the firm uses in evaluating projects is 11 percent. The tax rate is 35 percent. What is the annual cost for each option? (Enter the answers in dollars. Do not round your intermediate calculations. Round the final answers to 2 decimal places. Negative answers should be indicated by a minus sign.)
Answers
Answer:
The first method would use prefabricated building segments, would have an initial cost of $6.5 million.
what is a market failure
Answers
In an article about the financial problems of USA Today, Newsweek reported that the paper was losing about $20 million a year. A Wall Street analyst said that the paper should raise its price from 50 cents to 75 cents, which he estimated would bring in an additional $65 million a year. The paper's publisher rejected the idea, saying that circulation could drop sharply after a price increase, citing The Wall Street Journal's experience after it increased its price to 75 cents. What implicit assumptions are the publisher and the analyst making about price elasticity
Answers
Answer: See explanation
Explanation:
The implicit assumptions that is masde by the publisher is that price elasticity is elastic. This implies that a change in price has a large impact on the quantity demanded. In this case, an increase in price will bring about a large reduction in demanded.
On the other hand, the analyst believee the price elasticity is inelastic. This means price change will have a little or no change in the quantity demanded.
Assalam waliakum
How are you?
Answers
Answer:
oh wait ..... I know this language ... are you from Pakistan???...
On December 31, 2009, Beam, Inc., borrowed $650,000 on an 8%, 10-year mortgage note payable. The note is to be repaid in equal quarterly installments of $23,761 (beginning March 31, 2010). Prepare journal entries to reflect (a) the issuance of the mortgage note payable, (b) the payment of the first installment on March 31, 2010, and (c) the payment of the second installment on June 30, 2010. Round amounts to the nearest dollar.
Answers
Answer:
Part a
Date - December 31, 2009
Debit : Cash $650,000
Credit : Mortgage note payable $650,000
Part b
Date - March 31, 2010
Debit : Mortgage note payable $10,761.00
Debit : Interest expense $13,000.00
Credit : Cash $23,761.00
Part c
Date - June 30, 2010
Debit : Mortgage note payable $10,976.22
Debit : Interest expense $12,784.78
Credit : Cash $23,761.00
Explanation:
At inception the Mortgage is initially measured at Fair Value, that is at the amount given by the Lender.
Mortgage payments would then include interest payments and capital repayments.
Preparing an amortization schedule would give us all the details required for this Mortgage.
Using a financial calculator, first set the data as follows :
PV = $650,000
I = 8%
P/YR = 4
N = 10 x 4 = 40
PMT = - $23,761
FV = $0
Then, prepare the amortization schedule for the mortgage note payable.
Date Capital Repayment Interest Payment Balance
Dec 31 - 09 $ 0 $ 0 $650,000.00
Mar 31 - 10 $10,761.00 $13,000.00 $639,239.00
June 30 - 10 $10,976.22 $12,784.78 $628,262.78
Primary data collection for a gaming software company could include the following methods except: Group of answer choices A SurveyMonkey survey sent out to the company's existing customers A gaming software report from Gartner Group, a market research firm Select 8-10 customers and get them to try a new product and ask them what they think of the product Talk to customers who comes into your store to return their purchases'
Answers
Answer:
A gaming software report from Gartner Group, a market research firm
Explanation:
Primary data collection is when data is collected through first hand research.
Primary data collection methods include
Surveys : this can take the form of questionnaires (including online questionnaires e.g. survey monkeyInterviews : this includes focus group interviews and interviewing customersAdvantages of primary data collection
Directly addresses the reason for data collection Provides unique insight that might be unavailable elsewhereDisadvantages of primary data collection
It can be expensiveit can be time consuming compared to other methodsSecondary data collection is collecting data that has already been collected in the past e.g. A gaming software report from Gartner Group, a market research firm
You are a lobbyist hired by a less developed country to try to prevent a developed country from increasing trade barriers against labor-intensive manufactured imports such as textiles. Make your case, arguing from both developed and developing country perspectives, in terms of who gains and who loses.
Answers
Answer:
The answer is explained below in separate headings.
Explanation:
Resources available such as land, labour, capital and entrepreneurship are different for each country. Some may have more while others might have less. The large (developed) countries tend to be more resourceful than those small (developing) countries.
Developed Country
In this case, the capital available at the developed country's disposal helps them export manufactured goods and import labour-intensive goods from developing country with relative ease in order to produce and profit from the market.
Developing Country
From their point of view, the potential to trade outward results in the enhancement in the country's growth and efficiency. This ultimately creates an opportunity for the consumers to benefit from the variety of goods available to choose from and workers of higher incomes.
Hence, if the trade barriers are increased then it would affect both the country's in terms of profit. However, the effect would be more adverse for developing country rather than for a developed country.
he following information pertains to the January operating budget for Casey Corporation. • Budgeted sales for January $207,000 and February $100,000. • Collections for sales are 60% in the month of sale and 40% the next month. • Gross margin is 35% of sales. • Administrative costs are $10,000 each month. • Beginning accounts receivable is $29,000. • Beginning inventory is $16,000. • Beginning accounts payable is $67,000. (All from inventory purchases.) • Purchases are paid in full the following month. • Desired ending inventory is 30% of next month's cost of goods sold (COGS). At the end of January, budgeted accounts receivable from January sales is ________.
Answers
Answer:
the budgeted account receivable is $82,800
Explanation:
The computation of the budgeted account receivable is shown below:
= Budgeted sales × next month sales collections percentage
= $207,000 × 40%
= $82,800
hence, the budgeted account receivable is $82,800'
We simply multiplied the budgeted sales with the next month collection sales percentage so that the budgeted account receivable could come
Ulko produces tomato paste at five different plants. The tomato paste is then shipped to one of three warehouses, where it is stored until it is shipped to one of the company’s four customers. The shell gives the plant capacities, the cost per ton of producing tomato paste at each plant and shipping it to each warehouse, the cost of shipping a ton of paste from each warehouse to each customer, customer demand, and the annual fixed cost of operating each plant and warehouse. Ulko’s management must decide which plants and warehouses to open, how to route paste from plants to warehouses and from warehouses to customers. All customer demand must be met. A given customer’s demand can be met from more than one warehouse, and a given plant can ship to more than one warehouse. Warehouses are trans-shipment points, anything shipped into a warehouse must be shipped out. Formulate a linear model and find the minimum cost solution for meeting customer demand.
Answers
Explanation:
all customer demand must b
An industrial park is being planned for a tract of land near the river. To prevent flood damage to the industrial buildings that will be built on this low-lying land, an earthen embankment can be constructed. The height of the embankment will be determined by an economic analysis of the costs and benefits. The following data have been gathered: Embankment Height Above Roadway (m) Initial Cost 2.0 $100,000 2.5 165,000 3.0 300,000 3.5 400,000 4.0 550,000 Flood Level Above Roadway (m) Average Frequency That Flood Level Will Exceed Height in Col. 1 2.0 Once in 3 years 2.5 Once in 8 years 3.0 Once in 25 years 3.5 Once in 50 years 4.0 Once in 100 years The embankment can be expected to last 50 years and will require no maintenance. Whenever the flood water flows over the embankment, $300,000 of damage occurs. Determine which of the five heights above the roadway should be selected. The interest rate is 12%. (50 points)
Answers
Answer:
The best height will be of 3.5 as it provides the best expected present worth.
Explanation:
2.0 heights Cost $100,000 now and it is expected to have losses of 300,000 every three years:
Present Value of Annuity
[tex]C \times \displaystyle \frac{1-(1+r)^{-time} }{rate} = PV\\[/tex]
C 300,000
time 16.67
(50 years of useful life / 3 years expected flood)
rate 0.404928
(we capitalize the 12% annual into a 3-year rate)
[tex]300000 \times \displaystyle \frac{1-(1+0.404928)^{-16.67} }{0.404928} = PV\\[/tex]
PV $738,308.8983
Present Worth: 100,000 + 738,308.90 = 838,308.90
2.5 height: cost $165,000, and we expected damage every eight year:
Present Value of Annuity
[tex]C \times \displaystyle \frac{1-(1+r)^{-time} }{rate} = PV\\[/tex]
C 300,000
time 6.25 (50 years useful life / 8 years)
rate 1.475963176 (we capitalize the 12% annual into a 8-year rate)
[tex]300000 \times \displaystyle \frac{1-(1+1.475963176)^{-6.25}}{1.475963176} = PV\\[/tex]
PV 203,257.0478
Present worth: 203,257.05 + 165,000 = 368,257.05
3.0 cost $300,000, and we expect a flood every 25 years
[tex]300000 \times \displaystyle \frac{1-(1+16)^{-2} }{16} = PV\\[/tex]
PV $18,685.0464
Present worth: 300,000 + $18,685.0464 = 318,685.05
3.5 cost $400,000, and we expect a floor every 50 years:
PRESENT VALUE OF LUMP SUM
[tex]\frac{Maturity}{(1 + rate)^{time} } = PV[/tex]
Maturity 300,000.00
time 50.00
rate 0.12
[tex]\frac{300000}{(1 + 0.12)^{50} } = PV[/tex]
PV 1,038.05
Cost: 400,000 + 1,038.05 = 401,038.05
The End Co issued preferred stock for proceeds of $19,000 during 2014. The company paid dividends of $3,500 on the preferred stock. The company issued a long-term note payable for $75,000 in exchange for a building during the year and bought $16,000 of new equipment. The company also purchased treasury stock for $5,000. The financing section of the statement of cash flows will report net cash inflows of
Answers
Answer:
The financing section of the statement of cash flows will report net cash inflows of $10,500
Explanation:
The financing section of the statement of cash flows shows results of cash resulting from capital invested by owners, debt issued and repayments to capital and debt.
Cash Flow from Financing Activities
Preferred Stock Issued $19,000
Dividends Paid ($3,500)
Treasury Stock Purchased ($5,000)
Net Cash Provided by Financing Activities $10,500
You are conducting a discounted cash flow analysis (DCF). You purchased an asset for $400,000 at time point zero. The asset was depreciating using straight line depreciation over a ten year schedule. When you initially placed the asset into service, you expected the asset to have a disposal / salvage value of $0. At the end of year seven the project is suddenly cancelled due to a change in technology and the asset is sold in the open market for $110,000. Prior to this transaction, the firm was forecasted to earn $1,000,000 profit after tax in year seven and the tax rate for the firm is 20%. What is the cash flow, in time period seven, as a result of this transaction
Answers
Answer: $112000
Explanation:
First, we calculate the book value in year 7 which will be:
= Depreciation × Balance life
= $400,000 × 3/10
= $120,000
Then, the cash flow as a result of the transaction will be:
= Asset sale - (Asset - Book value) × Tax rate
= 110000 - [(110000 - 120000) × 20%]
= 110000 - (-2000)
= 110000 + 2000
= 112000
Cash flow is the determination of inflow and outflow of cash due to business or non-business activities. The cash flow for a particular year is determined by preparing the cash flow statement. There are two methods for cash flow statements those are: direct and indirect methods.
The cash flow for the transaction is $112,000
Computation:
The cash flow in the time period of seven years is determined as follows:
[tex]\begin{aligned}\text{Cash Flow}&=\text{Sale Value of Asset}-[\left(\text{Asset-Book Value}\right)\times\text{Tax Rate}]\\&=\$110,000-[\left(\$110,000-\$120,000 \right )\times20\%]\\&=\$110,000-\left(-\$2,000 \right )\\&=\$112,000 \end{aligned}[/tex]
Working Note:
The calculation of the book value of the asset at the 7th year:
[tex]\begin{aligned}\text{Book Value}&=\text{Depreciation}\times\dfrac{\text{Remaining Life of Asset}}{\text{Estimate Useful Life of the Asset}}\\&=\$400,000\times\dfrac{3}{10}\\&=\$120,000\end{aligned}[/tex]
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Organizational buyers, when compared to buyers of consumer goods, are........ in number, geographically............. and ............. apt to buy on specifications.
A. Fewer,dispersed,less
B. Fewer, concentrated, less
C.Fewer, concentrated,more
D. Greater, concentrated,less
E. Greater,dispersed,more
Answers
Answer:
answer is (D) ok alright
Assume the following information appears in the standard cost card for a company that makes only one product: Standard Quantity or Hours Standard Price or Rate Standard Cost Direct materials 5 pounds $ 11.00 per pound $ 55.00 Direct labor 2 hours $ 17.00 per hour $ 34.00 Variable manufacturing overhead 2 hours $ 2.50 per hour $ 5.00 During the most recent period, the following additional information was available: 20,000 pounds of material was purchased at a cost of $10.50 per pound. All of the material that was purchased was used to produce 3,900 units. 8,000 direct labor-hours were recorded at a total cost of $132,000. The actual variable overhead cost incurred during the period was $25,000. Assuming the company uses direct labor-hours to compute its predetermined overhead rate, what is the variable overhead efficiency variance
Answers
Answer:
$500 U
Explanation:
From the given information:
Standard hours allowed = 3900 × 2
= 7800 hours
The variable overhead efficiency variance = ( actual hours - standard hours) × standard variable overhead rate
= (8000 -7800) × $2.50
=(200) × $2.50
= $500 U (unfavourable)
The following is a partially completed lower section of a departmental expense allocation spreadsheet for Brickland. It reports the total amounts of direct and indirect expenses for the four departments. Purchasing department expenses are allocated to the operating departments on the basis of purchase orders. Maintenance department expenses are allocated based on square footage. Compute the amount of Purchasing department expense to be allocated to Fabrication. Purchasing Maintenance Fabrication Assembly Operating costs $ 42,000 $ 24,000 $ 106,000 $ 72,000 No. of purchase orders 15 5 Sq. ft. of space 3,800 2,200
Answers
Answer:
The amount of Purchasing department expense to be allocated to Fabrication is $31,500.
Explanation:
Note: The data in this question are merged together. They are therefore sorted before answering the question as follows:
Purchasing Maintenance Fabrication Assembly
Operating costs $42,000 $24,000 $106,000 $72,000
No. of purchase orders 15 5
Sq. ft. of space 3,800 2,200
The explanation of the answer is now given as follows:
Amount allocated to Fabrication = Purchasing department expense * (No. of purchase orders by Fabrication / (No. of purchase orders by Fabrication + No. of purchase orders by Assembly)) = $42,000 * (15 / (15 + 5)) = $31,500
Therefore, the amount of Purchasing department expense to be allocated to Fabrication is $31,500.
Which of the following is a disadvantage of the sole proprietorship form of ownership?
Question 2 options:
A)
Split responsibility
B)
Unlimited liability
C)
Limited liability
D)
Control over the business
its not unlimited liability that's what I put and I got it wrong
Answers
Answer:
D.......... .................... .. . . ...... ..........
A manager needs to assign her team to work on different types of programs in the community. Any team can work on any of the programs. However, the manager feels that there is a difference in the amount of time it would take each group to finish their tasks for each program. Her estimate of the time to complete in hours is given below. Programs Business Education Surveys Beautification Group 1 32 35 15 27 Group 2 38 40 18 35 Group 3 41 42 25 38 Group 4 45 45 30 42 What is the total number of hours the teams will spend on the projects
Answers
Answer:
The total number of hours the teams will spend on the projects is:
= 548 hours.
Explanation:
a) Data and Calculations:
Estimate of time to complete each program by various groups:
Programs
Business Education Surveys Beautification Total
Group 1 32 35 15 27 109
Group 2 38 40 18 35 131
Group 3 41 42 25 38 146
Group 4 45 45 30 42 162
Total 156 162 88 142 548
b) Each group's total time is added, and each program's total time is also added. The totals are then summed to get the overall total number of hours that the teams would spend on the various projects.
Heavy Products, Inc. (HPI) developed standard costs for direct material and direct labor. In 2020, HPI estimated the following standard costs for one of their major products, the 10-gallon plastic container.
Budgeted quantity Budgeted price
Direct materials 0.1 pounds $90 per pound
Direct labor 0.2 hours $30 per hour
During June, Heavy Products produced and sold 21,000 containers using 2,400 pounds of direct materials at an average cost per pound of $93 and 2,100 direct manufacturing labor-hours at an average wage of $30.50 per hour. June's direct material flexible-budget variance is:_____.
A) $18,720 favorable.
B) $880,000 unfavorable.
C) $100,000 favorable.
D) $60,000 unfavorable.
Answers
Answer:
$34,200
Explanation:
Calculation to determine what June's direct material flexible-budget variance is
Flexible-budget variance = (2,400 × $93) − (21,000 × 0.1 × $90)
Flexible-budget variance =$223,200-$189,000
Flexible-budget variance =$34,200 U
List three examples of fossil fuels are
Answers
Answer:
i Will help
Explanation:
dinosaur ones
Turtle ones and
fish fossils
your welcome my buddy
Answer:
Explanation:
Coal, crude oil, and natural gas are all considered fossil fuels because they were formed from the fossilized, buried remains of plants and animals that lived millions of years ago
Kray Inc., which produces a single product, has provided the following data for its most recent month of operations: Number of units produced 5,500 Variable costs per unit: Direct materials $ 39 Direct labor $ 27 Variable manufacturing overhead $ 11 Variable selling and administrative expense $ 5 Fixed costs: Fixed manufacturing overhead $ 401,500 Fixed selling and administrative expense $ 451,000 There were no beginning or ending inventories. The variable costing unit product cost was:
Answers
Answer:
the variable costing unit product cost is $77
Explanation:
The computation of the variable costing unit product cost is shown below:
= Direct material + direct labour + variable manufacturing overhead
= $39 + $27 + $11
= $77
hence, the variable costing unit product cost is $77
We simply added the three items so that the variable costing unit could come
The same would be relevant
what is the yearly salary or hourly wage of a librarian?
Answers
Answer:
$61,920, or $29.77
Explanation:
Answer:
The average hourly rate for Librarian ranges from $27 to $38 with the average hourly pay of $32.
Explanation:
The average salary for a Librarian is $58515 per year in United States.
Salaries start from $34630 and go up to $93050.
The current listed price per share of a certain common stock is $15. The cash dividend expected from this corporation in one year is $2 per share. All market research indicates that the expected constant growth rate in dividends will be 4 percent per year in future years. What is the rate of return on this investment that an investor can expect if shares are purchased at the current listed price
Answers
Answer:
the rate of return on the investment is 17.33%
Explanation:
The computation of the rate of return is shown below:
The Rate of return is
= (Dividend at year 1 ÷ Price year at 0) + growth rate
= ($2 ÷ 15) + 0.04
= 17.33%
Hence, the rate of return on the investment is 17.33%
We simply applied the above formula so that the rate of return could come
And, the same would be relevant
Twins graduate from college together and start their careers. Twin 1 invests $1500 at the end of each year for 10 years only (until age 33) in an account that earns 7%, compounded annually. Suppose that twin 2 waits until turning 40 to begin investing. How much must twin 2 put aside at the end of each year for the next 25 years in an account that earns 7% compounded annually in order to have the same amount as twin 1 at the end of these 25 years (when they turn 65)
Answers
Answer:
Annual investment= $2,855.71
Explanation:
First, we will determine the future value of the investment of Twin 1 at the end of the firsts 10 years.
Twin 1:
Annual investment= $1,500
Number of periods= 10 years
Interest rate= 7%
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
FV= {1,500*[(1.07^10) - 1]} / 0.07
FV= $20,724.67
Now, the value of the account of Twin 1 after 32 years (65 - 33), if he leaves the money to gain interest:
FV= PV*(1+i)^n
FV= 20,724.67*(1.07^32)
FV= $180,621.11
Finally, the annual deposit that Twin 2 must make to equal the amount earned by Twin 1:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
Isolating A:
A= (FV*i)/{[(1+i)^n]-1}
A= (180,621.11*0.07) / [(1.07^25) - 1]
A= $2,855.71
Twin 2 must make an annual deposit of $2,855.71 to match the amount earned by Twin 1, which is the annual investment.
How do you calculate the Annual investment of Twin 2?First, we'll calculate the future value of Twin 1's investment at the conclusion of the first ten years.
[tex]\text{Twin 1}:\\\text{Annual investment}= $1,500\\\text{Number of periods= 10 years}\\\text{Interest rate= 7} \text{percent}\\FV= {A\text{x}[(1+i)^n-1]}/i\\\text{A= annual deposit}FV= {1,500 \text{x} [(1.07^{10} ) - 1]} / 0.07FV= $20,724.67[/tex]
The following is the worth of Twin 1's account after 32 years (65 - 33), assuming he leaves the money to earn interest:
[tex]\text{FV= PV} \text{x}(1+i)^n\\FV= 20,724.67\text { x }(1.07^{32})\\FV= 180,621.11[/tex]
Finally, Twin 2 must make an annual deposit equivalent to the amount generated by Twin 1:
[tex]\text{FV}= {\text{A} \text{x}{[(1+i)^n-1]}/\text{i}\\\text{A= annual deposit}[/tex]
[tex]\text{Isolating A}:\\A= (FV \text{x} i)/{[(1+i)^n]-1}\\A= (180,621.11 \text{x} 0.07) / [(1.07^{25} ) - 1]\\A= 2,855.71[/tex]
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After successfully completing your corporate finance class, you feel the next challenge ahead is to serve on the board of directors of Schenkel Enterprises. Unfortunately, you will be the only individual voting for you. a.If the company has 430,000 shares outstanding and the stock currently sells for $45, how much will it cost you to buy a seat if the company uses straight voting
Answers
Answer:
$9,675,045
Explanation:
In order to win the election of the board of directors, voting powers should have half a of the voting power and one vote.
Calculating the cost incurred to buy the voting power:
Total cost = [Number of shares / 2 + 1] * Stock price
Total cost = [430,000/2 + 1] * $45
Total cost = 215,001 * $45
Total cost = $9,675,045
So, it will cost one $9,675,045 to buy a seat if the company uses straight voting.
Standard Direct Materials Cost per Unit Crazy Delicious Inc. produces chocolate bars. The primary materials used in producing chocolate bars are cocoa, sugar, and milk. The standard costs for a batch of chocolate (8,100 bars) are as follows: Ingredient Quantity Price Cocoa 480 lbs. $0.40 per lb. Sugar 150 lbs. $0.60 per lb. Milk 120 gal. $1.70 per gal. Determine the standard direct materials cost per bar of chocolate. If required, round to the nearest cent. $fill in the blank 1 per bar
Answers
Answer: $0.06
Explanation:
The standard direct materials cost per bar of chocolate will be:
Cocoa:
Quantity = 480 lbs.
Price = $0.40 per lb
Amount = $192
Sugar:
Quantity = 150 lbs.
Price = $0.60 per lb
Amount = $90
Milk:
Quantity = 120 gal
Price = $1.70 per gal
Amount = $204
Total amount = $192 + $90 + $204 = $486
Since there are 8100 bars of chocolate, the cost per bar will be:
= $486 / 8100
= $0.06