As of now Southwest is a stage in front of their rivals. They can ascribe this to the choices they made to limit their cost, their clients have seen the advantages of these choices. Since flights run assuming regardless of the possibility that they are half full, the organization goes out on a limb of gaining low income for that flight. Since the organization remains in an endless value war with its rivals they are compelled to keeps ticket costs low, this could bring about lost income and a plausibility of cutting overhead and creation cost. This could likewise impact the planning of workers. The dread of expanding oil costs still stays high on the organization's radar.
Answer: $65,075.85
Explanation:
Given that the cash flow should be constant, it will be an annuity.
The initial investment will be the present value of this annuity.
Present value of annuity = Annuity * ( 1 - (1 + rate)^-number of periods) / rate
460,100 = Annuity * ( 1 - (1 + 8.2%) ⁻¹¹) / 8.2%
460,100 = Annuity * 7.070211525
Annuity = 460,100 / 7.070211525
= $65,075.85
Answer:
Nexium & Associates Journal entries
March 1
Dr Accounts Receivable800
Cr Service Revenue 800
March 9
Dr Office Furniture1,060
Cr Office Supplies 160
Cr Accounts Payable1,220
March 15
Dr Accounts Payable1,220
Cr Cash1,220
March 23
Dr Electricity Expense430
Cr Accounts Payable430
March 31
Dr Salaries Expense850
Cr Cash850
Explanation:
The details given about Nexium & Associates are straight forward and required no further
adjustment.
Answer:
D. 34.00%
Explanation:
The computation of the new contribution margin is shown below:
As we know that
Contribution Margin = Net Sales Revenue - Variable Expenses
where,
Net sales revenue is
= 604 units × $32.5
= $19,630
The variable expense = Total material cost + total labor cost
Total Material Cost = 604 units × $14.36 = $8,673.44
Total Labor Cost = 604 units × $7.09 = $4,282.36
So, the variable expense is
= $8,673.44 + $4,282.36
= $12,955.8
Now
Contribution margin = $19,630 - $12,955.8 = $6,674.2
And,
Contribution margin ratio = Contribution margin ÷ net sales
So, Contribution margin = $6,674.2 ÷ $19,630
= 34.00%