Answer:
a. they are separate performance obligations
normal price of annual membership = $1,140
one yer enrollment in yoga = $600 x (30% - 10%) = $120 x 50% = $60
total $1,200
% of price allocated to:
annual membership = ($1,140 / $1,200) x $1,100 = $1,045
discount voucher = $1,100 - $1,045 = $55
b. the journal entry should be
Dr Cash 1,100
Cr Unearned revenue, membership fees 1,045
Cr Unearned revenue, discount voucher 55
Answer:
d. $13.00
Explanation:
contributon margin = selling price - variable cost
sales price: $25 per unit
<u>list of variable cost:</u>
Direct mateirals 6.20
Direct labor 2.80
variable overhead 1.45
sales commisions 1.00
adminsitrative variable<u> 0.55 </u>
total variable cost 12.00
$25 selling price per unit - $12 variable cost per unit =
$13 contribution margin per unit
This is the amount each units "contributes" to ay the fixed cost and make a gain during the period.
Answer: d. $45,000 should be debited to Land Improvements.
Explanation:
Land improvements records any moderation to land asset that is expected to add to its value and lasts for more than a year.
The paving and lighting of the parking area will add value to the area and will last longer than a year so both should go to the Land improvement account. As this account is an asset account, it will be debited when increased:
= 30,000 + 15,000
= $45,000
Answer:
a. What is the PI if the discount rate is 20%?
profitability index = present value of cash flows / initial outlay
PI = $9,137.41 / $5,000 = 1.83
b. What is the NPV if the discount rate is 20%?
NPV = -$5,000 + $9,137.41 = $4,137.41
c. What is the IRR if the discount rate is 20%?
the discount rate is irrelevant when you are calculating the IRR, since the IRR is the discussion rte at which the NPV = $0
IRR = 55.23%
Explanation:
Initial Outlay -$5,000
Year 1 $3,000
Year 2 $3,500
Year 3 $3,200
Year 4 $2,800
Year 5 $2,500.
