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Anit [1.1K]
2 years ago
10

Bonita Industries used high-low data from June and July to determine its variable cost of $12 per unit. Additional information f

ollows: Month Units produced Total costs June 2200 $32400 July 600 13200 If Bonita’s produces 1300 units in August, how much is its total cost expected to be?
Business
1 answer:
ladessa [460]2 years ago
4 0

Answer:

Total cost= $25,200

Explanation:

Giving the following information:

Unitary variable cost= $12

Units produced - total cost:

June: 2,200 - $32,400

July: 600 - $13,200

August= 1,600 units

First, we need to determine the fixed costs:

Fixed costs= total cost - total variable cost

June= 32,400 - 12*2,200= $6,000

July= 13,200 - 12*600= $6,000

Now, we can calculate the total cost for 1,600 units,

Total cost= 6,000 + 12*1,600= $25,200

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Suppose you receive at the end of each year for the next three years. a. If the interest rate is ​, what is the present value of
Furkat [3]

Answer:

the question is missing the numbers, so I looked for a similar question:

Suppose you receive $100 at the end of each year for the next three years. a. If the interest rate is 8%, what is the present value of these cash flows? (Answer: $257) b. What is the future value in three years of the present value you computed in (a)? (Answer: $324.61) c. Suppose you deposit the cash flows in a bank account that pays 8% interest per year. What is the balance in the account at the end of each of the next three years (after your deposit is made)? How does the final bank balance compare with your answer in (b)?

a) PV = $100/1.08 + $100/1.08² + $100/1.08³ = $257.71

b) FV = $257.71 x (1 + 8%)³ = $324.64

c) FV = ($100 x 1.08²) + ($100 x 1.08) + $100 = $324.64

it is exactly the same as the answer for (b)

5 0
1 year ago
E3.3 (LO 3) (Unknown Rate) HQ Ltd. purchased a used truck from Trans Auto Sales Inc. HQ paid a $4,000 down payment and signed a
ivolga24 [154]

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

7 0
1 year ago
Ambrin Corp. expects to receive $2,000 at the end of each year for 10 years. Then the corporation expects to receive $3,500 per
mash [69]

Answer:

The approximate present value = $24294

Explanation:

Given the annuity or expected amount for 10 years = 2000 dollars

The corporation expects the amount for next 10 years = $3500

Discount rate or interest rate = 8%

Present value = (2000 × PVIFA at 8%, 10 YEARS) + (3500 × PVIFA at 8%, 10 YEARS × PVIFat 8%, 10 YEARS)

Present rate = (2000 × 6.710) + (3500 × 6.710 X 0.463)

= $24293.6 or  $24294 (round off)

7 0
1 year ago
Lynn Amherst is a sales associate for Excel Realty. Lynn is preparing a classified ad for a listed property. The company's phone
Ulleksa [173]

Answer: d. Call Lynn Amherst, Excel Realty 333-2020 (cell).

Explanation:

When Advertising it is best to state contact details in terms of what type they are. Lynn in this case should specify to her intended audience that the phone number listed is Lynn's cell phone number so that they do not believe it to be the company's phone number.

3 0
1 year ago
39. You expect to receive $5,000 in 25 years. How much is it worth today if the discount rate is 5.5%?
ivann1987 [24]

Answer:

PV= $1,311.17

Explanation:

Giving the following information:

Future Value (FV)= $5,000

Number of periods (n)= 25 years

Interest rate (i)= 5.5% compounded annually

T<u>o calculate the present value (PV), we need to use the following formula:</u>

<u></u>

PV= FV / (1+i)^n

PV= 5,000 / 1.055^25

PV= $1,311.17

6 0
1 year ago
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