Answer:
Explanation:
a. Dr Cash 5,376,150
Cr Premium on bonds payable 376,150
Cr Bonds payable 5,000,000
b. Dr Interest expense 322,569
Dr premium on bonds payable 2431
Cr Cash 325,000
c. Dr Interest expense 322,423
Dr Premium on bonds payable 2577
Cr Cash 325,000
d. Dr Interest expense 322,269
Dr premium on bonds payable 2731
Cr Cash 325,000
Answer:
The contribution margin will decrease by 2.50
Explanation:
IF sales decreases, then the contribution margin decreases.
That's because, there is less money to pay for the variable cost.
The company will also have to sale more units to break even, as now each units contribution is fewer.
Cone's should evaluate how much their sales are expected to increase for the lower price and be cautious
Answer: Opportunity cost
Explanation:
A. Opportunity cost can be defined as the next best alternative foregone , it is the cost of profit the business looses while choosing one alternative over other.
B. Fixed cost are those cost that do not change with the level of output produced in the firm.
C. In simple words the direct costs a business pay to the outsiders for running its operations is called explicit cost.
D. Total revenue is the amount of income a company has before deducting its expenses occurred to earn that income.
So from the above explanations we can conclude that value of a business owner's time is an example of opportunity cost.
Answer: $2,845.57965
The principal to be deposited semiannually would be $2,845.58 (rounded to 2 decimal places)
Explanation:
Using compound formula below
A = p (1 + r/n)^nt
A =amount= $3,300
r = rate = 5% = 5/100 = 0.05
n = number of compounding rate (semiannually) =2 interest payments a year
t = time in years= 3
3,300 = p (1 + 0.05/2)^2(3)
3,300 = p (1 + 0.025)^6
3,300 = p (1.025)^6
3,300 = 1.15969342p
Divide both sided by 1.15969342
p = $(3,300/1.15969342)
p = $2,845.57965
p ≈$2,845.58 rounded to 2 decimal places.
Answer:
a. ($35,000)
Explanation:
The computation of the financial advantage or disadvantage of dropping product V860 is shown below:
= Sales - Variable cost - Avoidable fixed manufacturing - Avoidable fixed selling
= $150,000 - $72,000 - $30,000 - $13,000
= $35,000
This $35,000 would be a financial disadvantage and the fixed cost should not be considered as it is not held for decision making purpose
Hence, the correct option is a
