Because of its usefulness in CVP analysis, managers generally use an income statement in which format

Suppose a farmer wants to borrow $176,590.00 to buy a tract of land. The BCS bank will make a 22-year loan fully amortized at 6.

Andrew [12]

Answer:

A Farmer

i) Loan principal = $178,033 ($176,590 + $443 + $1,000)

ii) Required stock purchase = $1,000

iii) Annual loan payment (fully amortized at 6.19%) is:

= a. $15,032.59

Explanation:

a) Data and Calculations:

Required loan amount = $176,590.00

Period of loan = 22 years

Interest rate = 6.19%

Loan fee = $443.00

Stock purchase = lesser of $1,000 or 3.00% of loan amount

= lesser of $1,000 or $5,297.70 ($176,590 * 3%)

i) Loan principal = $178,033 ($176,590 + $443 + $1,000)

ii) Required stock purchase = $1,000

iii) Annual loan payment (fully amortized at 6.19%) = $15,030 approximately :

(# of periods) 22

I/Y (Interest per year) 6.19

PV (Present Value) 178033

FV (Future Value) 0

PMT = $15,030.02

Sum of all periodic payments $330,660.34

Total Interest $152,627.34

7 0

3 years ago

Motorcycle Manufacturers, Inc. projected sales of 59,700 machines for the year. The estimated January 1 inventory is 6,410 units

svlad2 [7]

Answer:

Production= 60,740

Explanation:

Giving the following information:

Sales= 59,700

Beginning inventory= 6,410

Desired Ending inventory= 7,450

<u>To calculate the production for the year, we need to use the following formula:</u>

Production= sales + desired ending inventory - beginning inventory

Production= 59,700 + 7,450 - 6,410

Production= 60,740

3 0

2 years ago

According to the Bureau of Labor Statistics (BLS) high-paying jobs in health care and jobs in leisure, hospitality, and educat

Damm [24]

According to analyzes by the Bureau of Labor Statistics, there will be expansion of complex goods and services, which require greater education in their production and marketing. Thus, these services tend to cater to those people who have the resources to pay for it. This means that the rapid expansion of services expected over the next five years will focus on the richest. Healthcare, education and leisure firms will tend to produce more personalized services to increase their profitability. This is basically the market logic of the economy.

8 0

3 years ago

A market has four individuals, each considering buying a grill. Assume that grills come in only one size and model. Martina cons

artcher [175]

Answer:

Martina

Javier :

Kama

Explanation:

The people that would participate in the market are those whose willingness to pay is higher than the market price for the grill.

The willingness to pay is the highest amount a person would be willing to pay for a good

Martina : $400 > $300 would participate

Javier : $350 > $300 would participate

Kama : $320 > $300 would participate

Lina : $200 < $300 would not participate

5 0

3 years ago

SwimFit produces gear for swimmers, including suits, goggles, swim caps, and ear plugs. SwimFit wants to improve the quality of

Sphinxa [80]

Answer:

(E)

Explanation:

Since SwimFit wants to improve the quality of its goggles and other products inorder to achieve better quality than that of its competitor it is termed reverse engineering.

Any reproduction of another manufacturer's product after examination of how it is made is called reverse engineering.

An example of this scenario occurs in real life when a close competitor of a firm invents a new mobile phone with certain features. Within a few weeks the other firm might release their own mobile phone with similar or even better features.

8 0

3 years ago