Baker Company, an Ohio company that sells a branded product regionally to retail customers in Midwest. It normally sells its product for $40 per unit; however, it has received a one-time offer from a private-brand company on the West Coast to buy 1,000 units at $25 per unit. Even though the company has excess capacity to produce the units, the president of the company immediately rejected the offer; however, the chief accountant stated that it might be a profitable opportunity for the company, even though $25 is below its unit cost of $28, calculated as follows:

Cost
Direct material $12.00
Direct labor      8.00
Depreciation and other fixed costs      6.00
Total unit cost $26.00

Calculate the net advantage (disadvantage) of accepting the special order:

a. $5,000
b. ($5,000)
c. $25,000
d. ($25,000)

Answers

Answer 1

Answer:

Effect on income= $5,000 increase

Explanation:

Giving the following information:

One-time offer:

1,000 units at $25 per unit.

Because it is a special offer and there is unused capacity, we will not take into account the fixed costs.

Unitary cost= 12 + 8= $20

Effect on income= 1,000*(25 - 20)

Effect on income= $5,000 increase


Related Questions

Which situation best describes an oligopoly?
A. A city government selects one company to provide clean water for
its residents.
B. A large oil company buys all of its competitors and shuts them
down permanently.
C. A group of vendors compete to sell the same drinks to fans at a
baseball game.
D. A few large airlines work together to set high prices and eliminate
new competitors.

Answers

D - a large airlines work together to set high prices and eliminate

The following units of a particular item were available for sale during the calendar year:

Jan. 1 Inventory 4,000 units at $20
Apr. 19 Sale 2,500 units
June 30 Purchase 6,000 units at $24
Sept. 2 Sale 4,500 units
Nov. 15 Purchase 1,000 units at $25

The firm maintains a perpetual inventory system. Determine the cost of goods sold for each sale and the inventory balance after each sale, assuming the first-in, first-out method.

Answers

Answer:

Cost of goods sold $152,000

Closing inventory   $97,000

Explanation:

Under the FIFO system , inventories are priced using the price of the oldest batch in the stock, after which the price of the next oldest batch and this is done in turn. It is based on the principle that the first batch that arrives the store should be issued first.

Total units sold = 2,500+4,500= 7,000

Using the FIFO method of the perpetual inventory, the 7,000 units sold by  will be priced as follows:

2500 units at a price of $20       =      $50,000

Next 1500units at a price of $20 =   $30,000

Next 3,000 units at a price of $24= $72,000

Cost of goods sold                             152,000

Closing inventory = Total cost of goods available for sale- cost of goods sold

Total cost of goods available for sale  =

(4,000× 20) + (6,000× 24)  + (1,000× $25) = 249,000

Closing inventory = 249,000 - 152,000=$97,000

Cost of goods sold $152,000

Closing inventory   $97,000

You have $100,000 in your retirement fund that is earning 5.5 percent per year, compounded quarterly. a. How many dollars in withdrawals per month would reduce this nest egg to zero in 20 years

Answers

Answer:

$680

Explanation:

The computation of the dollars in withdrawals per month that decrease this nest egg to zero in 20 years is shown below;

As we can see in the attached image that the $100,000 would be in the retirement fund so in 20 years, the withdrawals per month is $680 that decrease the nest egg to zero

Therefore the same would be considered

Alpha Industries is considering a project with an initial cost of $9.7 million. The project will produce cash inflows of $1.67 million per year for 9 years. The project has the same risk as the firm. The firm has a pretax cost of debt of 6.12 percent and a cost of equity of 11.61 percent. The debt–equity ratio is .77 and the tax rate is 40 percent. What is the net present value of the project?

Answers

Answer:

$660,000

Explanation:

WACC = [wD * kD * (1 - t)] + [wE * kE]

WACC = [(0.77 / 1.77)*6.12%* (1 - 0.40)] + [(1 / 1.77)*11.61%]

WACC = 1.60% + 6.56%

WACC = 8.16%

Present value of annuity = Annuity*[1-(1+interest rate)^-time period]/rate

Present value of annuity = $1.67*[1-(1.08156745763)^-9]/0.0816

Present value of annuity = $1.67*6.206374532

Present value of annuity = $10.36 million

NPV = Present value of inflows - Present value of outflows

NPV = $10.36 million - $9.7 million

NPV = $660,000

The market consensus is that Analog Electronic Corporation has an ROE of 9% and a beta of 1.70. It plans to maintain indefinitely its traditional plowback ratio of 2/3. This year's earnings were $3.6 per share. The annual dividend was just paid. The consensus estimate of the coming year's market return is 15%, and T-bills currently offer a 5% return.

Required:
a. Find the price at which Analog stock should sell.
b. Calculate the P/E ratio.
c. Calculate the present value of growth opportunities.
d. Suppose your research convinces you Analog will announce momentarily that it will immediately reduce its plowback ratio to 1/3. Find the intrinsic value of the stock.

Answers

Answer:

a $7.95

b. $2.21

c $16.36

d, $13.01

Explanation:

according to the constant dividend growth model

price = [d0 (1+g)] / (r - g)

d0 = recently paid dividend

Dividend = payout ratio x earnings

payout ratio = 1 - plowback rate

1 - 2/3 = 1/3

1/3 x 3.6 = $1.2

r = cost of equity

According to the capital asset price model: Expected rate of return = risk free + beta x (market rate of return - risk free rate of return)

5% + 1.7(15 - 5) = 22%

g = growth rate

g = plowback rate x ROE

2/3 X 9 = 6%

1. [1.2 x 1.06] / (0.22 - 0.06) = 1.272/ 0.16 = $7.95

2.

The price to earning ratio is a financial metric used to value a company. it compares the price of a stock to the earnings of the stock. the lower the metric is, the higher the valuation of the firm

price to earning ratio = market value per share / earnings

$7.95 /  $3.6 = $2.21

c. present value of growth opportunities = earnings / cost of equity

3.6 / 0.22 = $16.36

d.

price = [d0 (1+g)] / (r - g)

d0 = recently paid dividend

Dividend = payout ratio x earnings

payout ratio = 1 - plowback rate

1 - 1/3 = 2/3

2/3 x 3.6 = $2.40

r = cost of equity = 22%

g = plowback rate x ROE

1/3 X 9 = 3%

[2.4 x 1.03] / (0.22 - 0.03) = 2.472/ 0.19 = $13.01

Tariq and Noelle work in the sales department at CTI Telecommunications. Tariq is the star salesman of the department and makes it his mission to motivate the rest of the team when sales numbers are down or when there are problems interacting with other departments. Meanwhile, Noelle consistently ranks in the middle or near the bottom in terms of sales, and she often gets distracted by calls from her teenage son. She also spends more time than she should socializing with friends in other departments. However, everyone, including the bosses, loves Noelle because of her true-blue loyalty to the company and her team. What else is most likely true of Noelle

Answers

Answer:

D. She volunteers to do the mundane tasks others avoid, and she does things like buying birthday cards for co-workers and organizing parties.

Explanation:

Noelle is an average perfomer so she is open for doing mundane task also she is not worried for star performance. in addition to this, she spends more time with some one as compared by having socializing. moreover, she is having a good skills and does not give priority to perform better as compared with others

So here the second last option is correct

A leader has a problem of low Product X sales. She meets individually (i.e., one at a time) with a number of her subordinates and shares the problem of low Product X sales. She asks for their ideas and suggestions about how to increase Product X sales and then makes the decision alone based on their input. According to Vroom and Yetton's normative theory of leadership, what decision-making style is the leader using in this situation

Answers

Answer: CI consultative.

Explanation:

According to Vroom and Yetton's normative theory of leadership, the decision-making style that the leader is using in this situation is the consultative leadership style.

This is a form of leadership style whereby the leader seeks the opinion of his team members and then uses the input gotten from them to make a final decision. Since the leader meets them individually and seeks their opinion, the leader is using a consultative leadership style.

A public good is A. any good provided by government. B. a good that can be most cheaply provided by government, though it may in fact be provided by private enterprise. C. a good whose benefits cannot readily be restricted to a small group of people. D. a good whose benefits cannot be enjoyed by an individual alone.

Answers

Answer:

C. a good whose benefits cannot readily be restricted to a small group of people.

Explanation:

Factors of production can be defined as the fundamental building blocks used by individuals or business firms for the manufacturing of finished goods and services in order to meet the unending needs and requirements of their customers.

The four factors of production are;

I. Land: this refers to the natural resources and raw materials extracted from the ground or grown in the soil e.g oil, gold, rubber, cocoa, etc.

II. Labor (working): this is the human capital or workers who are saddled with the responsibility of overseeing and managing all the aspects of production.

III. Capital resources: it includes the physical assets used for production of goods and services such as equipment, money, plant, etc.

IV. Entrepreneurship: it is intellectual capacity required to drive a business and the skills to develop an idea into a money making venture (business).

These four (4) factors of production when combined effectively and efficiently are used for the manufacturing or production of goods and services that meets the unending requirements or needs of the consumers.

A public good is a good whose benefits cannot readily be restricted to a small group of people.

This ultimately implies that, a public good such as power utility (electricity) or water supply is capable of being provided simultaneously to the general public.

Furthermore, a public good is non-excludable and cannot be exhausted due to its use by the general public i.e it's never depleted.

Chris Co. produces sports equipment and is currently producing 1,000 mini long boards annually. A supplier has offered to produce the boards for Chris Co. for $300 per board. Chris Co. incurs unit-level costs of $280 per unit. Chris also spends $25,000 on product design each year and incurs $50,000 of facility-level costs. The avoidable production cost for Chris to produce one mini long board is

Answers

Answer: $305

Explanation:

The avoidable production cost for Chris to produce one mini long board goes thus:

Unit Level Cost = $280

Add: Product Level Cost = $25,000 / 1000 units = $25

Then, the avoidable cost to produce one unit will be:

= $280 + $25

= $305

The Peoria Supply Company sells for $30 one product that it purchases for $20. Budgeted sales in total dollars for next year are $720,000. The sales information needed for preparing the July budget follows:

Month Sales Revenue
May $30,000
June 42,000
July 51,000
August 54,000

Account balances at July 1 include these:

Cash $20,000
Merchandise inventory 18,000
Accounts receivable (sales) 23,000
Accounts payable (purchases) 12,000

The company pays for one-half of its purchases in the month of purchase and the remainder in the following month. End-of-month inventory must be 50 percent of the budgeted sales in units for the next month. A 2 percent cash discount on sales is allowed if payment is made during the month of sale. Experience indicates that 50 percent of the billings will be collected during the month of sale, 40 percent in the following month, 8 percent in the second following month, and 2 percent will be uncollectible. Total budgeted selling and administrative expenses (excluding bad debts) for the fiscal year are estimated at $180,000 , of which one-half is fixed expense (inclusive of a $20,000 annual depreciation charge). Fixed expenses are incurred evenly during the year. The other selling and administrative expenses vary with sales. Expenses are paid during the month incurred.

Required:
a. Prepare a schedule of estimated cash collections for July.
b. Prepare a schedule of estimated July cash payments for purchases.
c. Prepare schedules of July selling and administrative expenses, separately identifying those requiring cash disbursements.

Answers

Answer:

The Peoria Supply Company

a. Schedule of Estimated Cash Collections:

Cash collections:                   July      

50% sales month              $25,500

less 2% cash discount             (510)

40% following month          16,800

8% second month                2,400

Total collections               $44,190

b. A Schedule of Estimated July Cash Payments for Purchases

                                      June         July

Sales                         $42,000    $51,000

Ending inventory         18,000*    27,000

Beginning inventory   21,000      18,000*

Estimated Purchases 39,000    60,000

Payment for purchases:

50% purchase month              $30,000

50% following month                 19,500

Total payment for purchases $49,500

c. Selling and administrative expenses

Non-Cash expenses:

Depreciation expense $1,667

Cash disbursements:

Other fixed costs          5,333

Variable costs               6,375

Total costs                 $13,375

Explanation:

a) Data and Calculations:

Selling price per product = $30

Purchase cost per product = $20

Total sales dollars for next year = $720,000

Month Sales Revenue

May         $30,000

June          42,000

July            51,000

August     54,000

July 1:

Cash balance = $20,000

Merchandise inventory $18,000

Accounts receivable (sales) 23,000

Accounts payable (purchases) 12,000

Ending inventory = $27,000 ($54,000 * 50%)

Ending inventory = 50% of next month's budgeted sales

Selling and administrative expenses (excluding bad debts) for the year = $180,000

Fixed costs = $90,000

Depreciation    20,000

Cash fixed costs = $70,000

Monthly fixed costs = $5,833

Variable costs = $90,000

Variable costs per sales dollars = $90,000/$720,000 = $0.125

Cash variable cost for July $0.125 * $51,000 = $6,375

a. Schedule of Estimated Cash Collections:

Cash collections:                May        June         July       August

                                      $30,000 $42,000   $51,000  $54,000

50% sales month             15,000    21,000    25,500     27,000

less 2% cash discount        (300)       (420)        (510)         (540)

40% following month                                      16,800     20,400

8% second month                                            2,400        3,360

2% Uncollectible

To help finance a major expansion, Castro Chemical Company sold a noncallable bond several years ago that now has 20 years to maturity. This bond has a 9.25% annual coupon, paid semiannually, sells at a price of $875, and has a par value of $1,000. If the firm's tax rate is 25%, what is the component cost of debt for use in the WACC calculation

Answers

Answer:

8.09%

Explanation:

Semi annual coupon = 1000*(9.25/2)% = 46.25

N = (20*2) = 40

Using Ms Excel to get I/Y

N = 40, PV=-875, PMT = 46.25, FV = 1000

CPT I/Y = I/Y(n, -pv, pmt, fv) * 2

CPT I/Y = I/Y(40, -875, 46.25, 1000) * 2

CPT I/Y = 5.39% * 2

CPT I/Y = 10.78%

After tax cost of debt = 10.78%*(1 - 0.25)

After tax cost of debt = 10.78%*0.75

After tax cost of debt = 0.08085

After tax cost of debt = 8.09%

As the Consumer Price Index increases, the value of money a. falls, so people hold less money to buy the goods and services they want. b. falls, so people hold more money to buy the goods and services they want. c. rises, so people hold more money to buy the goods and services they want. d. rises, so people hold less money to buy the goods and services they want.

Answers

Answer:

D. falls, so people hold more money to buy the goods and services they want.

Explanation:

In the case when the consumer price index rises, so the value of the money declines as the people would hold more money in order to purchase the goods and services what actually they want

Also it shows an inverse relationship between the consumer price index and the value of money i.e. if one thing is increased the other thing would decrease and vice versa

Therefore the option d is correct

It is an accounting question

Answers

Answer:

Latana Company

Classified Balance Sheet

As of the first month of operation

Assets

Current assets:

Cash                             $49,500

Short-term investments 10,000

Notes receivable             5,000

Supplies                              900     $65,400

Long-term assets:

Land                               15,000

Equipment                     10,000     $25,000

Total assets                                   $90,400

Liabilities and Equity

Current liabilities:

Accounts payable                               $400

Long-term liabilities:

Notes payable                                $15,000

Total liabilities                                 $15,400

Stockholders' equity:

Common stock                    $750

Additional Paid-in Capital 74,250 $75,000

Total liabilities and equity             $90,400

Explanation:

a) Data and Calculations:

Latana Company

Trial Balance

As of the first month of operation

Account Titles                 Debit         Credit

Cash                             $49,500

Short-term investments 10,000

Notes receivable             5,000

Supplies                              900

Land                               15,000

Equipment                     10,000

Accounts payable                               $400

Notes payable                                  15,000

Common stock                                     750

Additional Paid-in Capital               74,250

Total                          $90,400     $90,400    

The price of a dozen eggs falls from $3 to $2.70. In response to this price change, the quantity supplied of eggs falls from 150,000 dozen eggs to 125,000 dozen eggs. What is the price elasticity of supply for eggs

Answers

Answer:

Price elasticity of supply=1.67

Explanation:

Price elasticity of supply is a measure of the degree of responsive of supply to a change in price . It is computed using the formula below:

% change in Quantity supply/% change in price

% change in Quantity supply= 125,000-150,000/150,000× 100=16.67%

% change in price = (2.70-3.00)/3.00× 100= 10.00%

Price elasticity of supply = 16.67/10.00=1.67

Price elasticity of supply=1.67

Which career is likely to earn the highest salary

Answers

Hello

CEOBiochemistry SpecialistInformation Technologies ManagerpilotDoctornutritionist

These are the professions that receive high salaries in our country, in Turkey.

equity method to account for inOn January 1 of the current​ year, Beta Company paid​ $200,000 for shares of Gamma Company common stock. Beta owns​ 10% of Gamma Company. Gamma reported net income of for December 31 of the current year. The fair value of the Gamma stock on that date was . What amount will be reported in​ Beta's balance sheet for the investment in Gamma at December​ 31?vestments

Answers

Answer:

$270,000

Explanation:

Calculation to determine What amount will be reported in Beta's balance sheet for the investment in Gamma at December 31

Using this formula

December 31 Investment in Gamma= Shares of Gamma*Fair value of the Gamma stock

Let plug in the formula

December 31 Investment in Gamma = 10,000 shares*$27

December 31 Investment in Gamma = $270,000

Therefore The amount that will be reported in Beta's balance sheet for the investment in Gamma at December 31 is $270,000

Capable Golf Cart, Inc. (CGC) manufactures two models of golf cart: LX and EX. The budget data for next month is available. LX EX Total Units produced 50 30 80 Direct labor hours 2,000 3,000 5,000 Machine hours 1,500 1,200 2,700 Direct materials $125,000 $90,000 $215,000 Direct labor 90,000 60,000 150,000 Manufacturing overhead 202,500 Total $567,500 Required: 1. Compute the reported unit cost for each product if direct labor hours are used as the allocation base. 2. Compute the reported unit cost for each product if direct labor costs are used as the allocation base. 3. Compute the reported unit cost for each product if machine hours are used as the allocation base.

Answers

Solution :

1. Allocation on the basis of [tex]$\text{Direct labor hours}$[/tex]

                                              LX                               EX

Direct Material                    125000                       90000

Direct [tex]$\text{labor}$[/tex] cost                  90000                       60000

Manufacturing overhead      [tex]$81000$[/tex]                        [tex]$121500$[/tex]

                              (202500/5000 x 2000)     (202500/5000 x 3000)

Total cost                             296000                       271500

Units produced                       50                               30

Cost per unit                          5920                           9050

2. Allocation on the basis of [tex]$\text{Direct labor costs}$[/tex]:

                                              LX                               EX

Direct Material                    125000                       90000

Direct labor cost                  90000                       60000

Manufacturing overhead    121500                       81000

                        (202500/150000 x 90000)     (202500/150000 x 60000)

Total cost                             336500                       231000

Units produced                       50                               30

Cost per unit                          6730                           7700

3. Allocation on the basis of [tex]$\text{machine hours}$[/tex]

                                              LX                               EX

Direct Material                    125000                       90000

Direct labor cost                  90000                       60000

Manufacturing overhead    112500                        90000

                              (202500/2700 x 1500)     (202500/2700 x 1200)

Total cost                             327500                       240000

Units produced                       50                               30

Cost per unit                          6550                          8000

One reason why​ "protecting domestic​ jobs" is a poor argument against free trade is because A. there is little evidence that trade protection saves domestic jobs. B. the cost of protecting jobs is much higher than the value of the jobs. C. labor in other countries is not priced lower than U.S. labor. D. any outsourcing of jobs from the U.S. is completely offset by outsourcing of jobs from other countries.

Answers

Answer: Cost of protecting jobs is much higher than the value of the jobs.

Explanation:

Protectionism is when the local industries in a country are protected against foreign competition in order to help them grow.

One of the main ideas behind free trade is for the consumers to be provided with affordable and low prices goods when there's a free movement of goods between the countries.

It should be noted that an increase in the labour cost will also.bring about an increase in the value of jobs and this can result to the goods being sold at a higher price. Therefore the correct option is B "cost of protecting jobs is much higher than the value of the jobs".

Answer:

A

Explanation:

If an announcement by a firm causes the price of that firm's stock to suddenly change, that price change will most likely be driven by:________.
a. the unexpected part of the announcement.
b. the expected part of the announcement
c. market inefficiency
d. systematic risk

Answers

Answer:

The correct answer is the option A: The unexpected part of the announcement.

Explanation:

To begin with, the stock market is characterized for being completely umpredictable due to the fact that the information available for the common people is not enough to predict the possible behaviors of the prices, so that means that when an unexpected announcement happens and nobody new about it then the market will react depending on how it takes the new so that explains that if something not good happens all the sudden the priece of the stocks of that company will probably go down due to the bad reception of the news.

In a year in which common stocks offered an average return of 18%, Treasury bonds offered 10% and Treasury bills offered 7%, the risk premium for common stocks was:_______
A. 1%.
B. 3%.
C. 8%.
D. 11%.
Explain.

Answers

Among us in real life sus sus c

1. Assume that your company is considering the lease of one of these HP copiers, and you expect that the average price for a color copy for your company would be $0.110 because you would carefully prioritize color copy jobs and reduce the number of copies requiring a large amount of color. You expect that training your copy center staff to properly use the new copier would cost about $6,150 for materials and lost work time. What is the breakeven number of color copies per year that would make you indifferent between the new HP copier and your current copier

Answers

Answer: 246,000 color copies

Explanation:

Cost of printing color pages using the old machine is not included so we will infer that.

We shall assume the cost of that to be $0.135.

In using this new copier made by HP, the cost saved per copy is:

= 0.135 - 0.110

= $0.025

The breakeven number of color copies that would make you indifferent would be the number of copies that would lead to a savings of $6,150 incurred on account of training the staff:

= 6,150 / 0.025

= 246,000 copies

Identify whether the actions or scenarios would likely increase or decrease the natural rate of unemployment. You are currently in a sorting module. Turn off browse mode or quick nav, Tab to items, Space or Enter to pick up, Tab to move, Space or Enter to drop. Increases natural rate of unemployment reducing workers' collective bargaining rights extra financial benefits for the unemployed a large number of young people entering the labor force an increase in union membership Decreases natural rate of unemployment

Answers

Answer:

increases natural rate of unemployment

extra financial benefits for the unemployed

a large number of young people entering the labor force

an increase in union membership

Decreases natural rate of unemployment

reducing workers' collective bargaining rights

Explanation:

natural rate of unemployment is unemployment that exists when there is only structural and frictional unemployment in an economy

structural unemployment is an unemployment that occurs as a result of changes in the economy. These changes can be as a result of changes in technology, polices or competition . Structural unemployment tends to be permanent.  

Frictional unemployment . the period of time a person is unemployed from the period he leaves his current job and the time he gets another job. Eg. when a real estate agent who leaves a job in Texas and searches for a similar, higher-paying job in California.

If the unemployed are given extra benefits, there would be less incentive to find a job, thus unemployment would increase

An increase in union membership increases bargaining power of employees. this can lead to increase in wages. increase in wages reduces demand for labour and this increases unemployment. reducing collective bargaining right has the opposite effect on unemployment

a large number of people entering the labour force increases frictional unemployment

SAP Inc. received a $1.5 million grant under its Small Business Innovation program. SAP invested the grant money and developed a system to remove metal contaminants from storm water in shipyards. The firm estimates that each shipyard spends $500,000 a year on storm water clean-up efforts. If SAP is able to sign up and retain four shipyards in the first year onwards, what is the present value (PV) of the project (net of investment) if the cost of capital for SAP is 14% per year

Answers

Answer: $12,785,714

Explanation:

Present value of project:

= Revenue / Cost of capital

= (500,000 * 4 shipyards) / 14%

= $14,285,714

Net of investment:

= 14,285,714 - 1,500,000

= $12,785,714

When the interest rate is above the equilibrium level, a. the quantity of money that people want to hold is less than the quantity of money that the Federal Reserve has supplied. b. people respond by buying interest-bearing bonds or by depositing money in interest-bearing bank accounts. c. bond issuers and banks respond by lowering the interest rates they offer. d. All of the above are correct.

Answers

Answer:

D

Explanation:

When interest rate is above the equilibrium level, people would be less willing to hold cash. Instead they would prefer to save or invest in  interest-bearing bonds. This is because as a result of the higher interest rate, interest paid on their deposit and investment would be higher.

As a result of the increase in savings, there would be an increase in the supply of loanable funds over demand for loanable funds. This would lead to a reduction in interest rate until equilibrium interest rate is reached.

Calculate the annual cash flows of a $2 million, 10-year fixed-payment deferred annuity earning a guaranteed 8 percent per year if annual payments are to begin at the end of the sixth (6th) year.

Answers

Answer:

$437,946.42

Explanation:

Present Value of Deferred Annuity = $2,000,000

Value at the end of Year 5 = $2,000,000*(1.08)^5

Value at the end of Year 5 = $2,938,656.15

Calculation of Annual Payment from Annuity using the TVM

Annual payment = PMT [PV, FV, N, I]

Annual payment = PMT [2,938,656.15, 0, 10, 0.08]

Annual payment = $437,946.42

So, the Annual Payment from annuity is $437,946.42.

Whitmer Inc. sells to customers all over the U.S., and all receipts come in to its headquarters in New York City. The firm's average accounts receivable balance is $2.5 million, and they are financed by a bank loan at an 11% annual interest rate. The firm is considering setting up a regional lockbox system to speed up collections, and it believes this would reduce receivables by 20%. If the annual cost of the system is $15,000, what pre-tax net annual savings would be realized

Answers

Answer:

$40,000

Explanation:

Average accounts receivables = $2,500,000. Loan amount is also $2,500,000.

Interest rate is 11%. So, interest paid = $2,500,000*0.11 = $275,000

If the system reduces receivables by 20%,then current receivables = $2,500,000*0.8 = $2,000,000. So,  loan amount = $2,000,000

Interest payable = $2,000,000*0.11 = $220,000

Cost of system = $15,000

Net annual savings = Interest payable without system - Interest payable after system installed - Cost of system

Net annual savings = $275,000 - $220,000 - $15,000

Net annual savings = $40,000

For a given product demand, the time-series trend equation is 53 - 4 x. The negative sign on the slope of the equation:
a. is a mathematical impossibility.
b. is an indication that the forecast is biased, with forecast values lower than actual values.
c. is an indication that product demand is declining.
d. implies that the coefficient of determination will also be negative.
e. implies that the cumulative error will be negative.

Answers

Answer: is an indication that product demand is declining.

Explanation:

The negative sign on the slope of the time-series trend equation simply explains that the product demand is declining.

A negative slope indicates that two variables are negatively related which implies that when the value of x increases, rhen the value of y decreases, and vice versa. When putting this in a graph, the line falls when the line that's on the line graph shifts from left to right.

The correct option is C

Determine if there was a percent increase or decrease in the number of trench coats sold, and by how much. (Round your answer to the nearest tenth.)

a.

The percentage of trench coats sold decreased by 0.8%.

b.

The percentage of trench coats sold increased by 0.8%.

c.

The percentage of trench coats sold decreased by 23.3%.

d.

The percentage of trench coats sold increased by 23.3%.

Answers

Answer:

D. increase of 23.3%, right on edge

Explanation:

to find the percentage increase, first you need to substract the final from the initial, then divide the difference by the initial, then multiply your answer by 100 to get the percentage

in this case, the final is 127, and the initial is 103

127 - 103 = 24

24 ÷ 103 = 0.233

0.233 x 100 = 23.3%

Answer:

✅ D. The percentage of trench coats sold increased by 23.3%.

THESE ARE TRUE OR FALSE!! PLEASE HELP!!
1. A goal in life that is fulfilled through a job is called an occupation.
2. The process of studying careers, assessing yourself, and making decisions about the future
is called career planning.
3. Career planning begins when you make decisions about your interests and the occupation
you want to have someday.
4. Studying careers is continuous because new career opportunities come along regularly.
5. School libraries should be avoided in career planning.
6. Newspaper help wanted ads are interesting but of little value in career planning.
7. In career planning, you should contact both government employment offices and private
employment agencies.
8. Career information interviews can be done naturally without any advance preparation.
9. The willingness and ability of workers to move where jobs are available is called mobility.
10. A natural, in-born aptitude to do certain things is an ability.

Answers

The answer is true !!!!!!!

Diamond Boot Factory normally sells its specialty boots for $22 a pair. An offer to buy 120 boots for $18 per pair was made by an organization hosting a national event in Norfolk. The variable cost per boot is $8, and special stitching will add another $2 per pair to the cost. Determine the differential income or loss per pair of boots from selling to the organization.

Answers

Answer:

Differential income = $960

Explanation:

In a special order decision , the offer should be accepted if the sales revenue from the order is greater than the relevant costs of the special orders.

The relevant costs of the special order = variable cost + additional cost of special stitching machine

                                                                                          $

Sales revenue    (120× $18)                                          2,160      

The relevant costs of the special order

= (120×8) + (120×2)                                                       (1,200)

Differential income                                                         960

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