Please find full question attached
Answer and Explanation:
Please find full answer and explanation attached
Answer:
$4,372.71
Explanation:
Here for reaching the difference in PV between the first and the second offer first we need to follow some steps which is shown below:-
Step 1
Total payment due = Per tire × Bought tires
= $80 × 600
= $48,000
Step 2
Present value factor of 8.4% for 1 year = 1 ÷ (1 + Rate of interest)^Number of years
= 1 ÷ (1 + 8.4%)^1
= 1 ÷ (1 + 0.084)^1
= 1 ÷ 1.084
= 0.92251
Step 3
First offer
Present value = Total payment due × Present value factor of 8.4% for 1 year
= $48,000 × 0.92251
= $44,280.48
Step 4
Second offer
One year payment = Bought tires × Per tire
= 600 × $45
= $27,000
Step 5
Present value = One year payment × Present value factor of 8.4% for 1 year
= 27,000 × 0.92251
= $24,907.77
Step 6
Total present value = Present value of second offer + Tires cost
= $24,907.77 + $15,000
= $39,907.77
Here we can see that first offer is higher than second offer
So,
The difference between the first and the second offer = First offer - Second offer
= $44,280.48 - $39,907.77
= $4,372.71
The new break-even point in units is: $23,200
Solution:
Given,
Marigold Corp. sells radios for $50 per unit
Fixed costs = $545000
Variable costs = 60%
As a consequence of the modern electronic facilities, the fixed costs are projected to rise by $35,000 and the variable costs would be 50% of the purchase price.
Now,
The new break-even point in units is:
= $545000 + $35000
= $580,000
=> 580,000/25 = $23,200
Answer: Will report a liability of $5000 for judgement debt and a claim of $11,000
Explanation:
The liability refers to the obligations of the firm which are certain is going to make payment as compensation.
The $5000 liability, although payment has not been made it's already Incurred by the company under the acural concept.
The claim of $11,000 is only probable and not certain even though amount and time of execution can be estimated, since it's not certain it will only be recorded as a claim in the goverments fund balance sheet.