Answer: $35,000
Explanation:
The payments of $1,033.34 at the end of every month is a constant amount which makes it an annuity.
Present value of annuity:
= Annuity * (1 - (1 + rate) ^-no. of periods) / rate
Rate needs to be made a monthly rate:
= 4%/12
= 4/12%
= 1,033.34 * ( 1 - ( 1 + 4/12%) ⁻³⁶/ 4/12%
= $35,000
Purchase price = Down payment + Present value of annuity
= 4,000 + 35,000
= $39,000
Answer:
the $500,000 that the old production line costed must be treated as a sunk cost. Sunk costs are costs that have already been incurred and the firm cannot recover them no matter what they do. in this case, since ankle-length skirts are out of fashion, the production is useless and is worth $0.
Explanation:
Answer:
Instructions are below.
Explanation:
Giving the following information:
Model A12:
selling price= $60
variable cost= $43
Model B22:
selling price= $111
variable costs= $79
Model C124:
selling price= $402
variable costs= $309.
Sales mix:
A12= 60%
B22= 27%
C124= 13%.
Fixed costs= $225,789
First, we need to calculate the break-even point in units for the company as a whole:
Break-even point (units)= Total fixed costs / Weighted average contribution margin ratio
Weighted average contribution margin ratio= (weighted average selling price - weighted average unitary variable cost)
Weighted average contribution margin ratio= (0.6*60 + 0.27*111 + 0.13*402) - (0.6*43 + 0.27*79 + 0.13*309)
Weighted average contribution margin ratio= 30.93
Break-even point (units)= 225,789/30.93
Break-even point (units)= 7,300 units
Now, for each product:
Sales mix:
A12= 0.6*7,300= 4,380
B22= 0.27*7,300= 1,971
C124= 0.13*7,300= 949
Answer:
Effect on income= $32,400 increase
Explanation:
Giving the following information:
Difference in selling price= 81 - 57= $24
Number of units= 8,100
Increase in costs= $162,000
<u>To calculate the effect on income, we need to use the following formula:</u>
Effect on income= Increase in revenue - increase in costs
Effect on income= 24*8,100 - 162,000
Effect on income= $32,400 increase
They will likely find out the customer’s liking and groups
in which will serve best for their advantages of having to attract more
consumers and to sell their products more. They will likely target this goal
than to try appealing the market place because the customer will bring more advantages
to the company or in field of business and market.
