Level strategy withing the business

hornton Computer Services, Inc. has been in business for six months. The following are basic operating data for that period: Mo

nignag [31]

Answer:

The total monthly fixed cost and the variable cost per hour is $1,540 and $23

The average contribution margin per hour is $27

Explanation:

The computation of the fixed cost and the variable cost per hour by using high low method is shown below:

Variable cost per hour = (High Operating cost - low operating cost) ÷ (High service hours - low service hours)

= ($11,200 - $4,300) ÷ (420 hours - 120 hours)

= $6,900 ÷ 300 hours

= $23

Now the fixed cost equal to

= High operating cost - (High service hours × Variable cost per hour)

= $11,200 - (420 hours × $23)

= $11,200 - $9,660

= $1,540

For computing the contribution margin per hour, first we have to compute the revenue per hour which is shown below:

= Revenue ÷ service hours

= $6,000 ÷ 120 hours

= $50

We know that,

The contribution per hour = Revenue per hour - variable cost per hour

= $50 - $23

= $27

8 0

3 years ago

To save for retirement, a student invests $60 each month in an ordinary annuity with 6 % interest compounded monthly. Determin

professor190 [17]

Answer:

The student invests $60 each month and the interest rate is 6%. The interest rate is compounded monthly so we will take the interest rate as 0.5% (6/12).

The number of periods will be 420 (35*12) as the payments are made every month.

The present value is 0 as he is not making any investment at the start.

We need to find the future value of these payments, and for that we need to put these values in a financial calculator

PV= 0

PMT= 60

I= 0.5

N=420

Compute FV

FV=85,482

The total accumulated amount in the students annuity will be $85,482.

Explanation:

6 0

3 years ago

Interest you receive from a bank is not considered income True or False?

bulgar [2K]

Any interest that you receive from a bank is taxable income, so I guess its false

6 0

3 years ago

Read 2 more answers

A manufacturer tests, modifies, and retests an original idea several times before offering it to the consumer. This process is c

taurus [48]

Answer:

Product development

Explanation:

A manufacturer tests, modifies, and retests an original idea several times before offering it to the consumer. This process is called product development.

A product life cycle can be defined as the stages or phases that a particular product passes through, from the period it was introduced into the market to the period when it is eventually removed from the market.

Generally, there are four (4) stages in the product-life cycle;

1. Introduction.

2. Growth.

3. Maturity.

4. Decline.

7 0

3 years ago

lucy invests $800 in an account that earns 6.12% annual interest compounded continuously. juan invests $1600 in an account that

Len [333]

Answer:

Both their investments will reach a similar value in 32 years, 9 months and 8 days. Both accounts will have exactly $5,606.

Explanation:

Original investment: $800 at 6.12% $1,600 at 3.9%

future value 10 years $1,449 $2,346

future value 20 years $2,624 $3,439

future value 30 years $4,753 $5,042

future value 31 years $5,044 $5,238

future value 32 years $5,353 $5,442

future value 33 years $5,681 $5,655

It will take over 32 years for both investments to match their amounts.

to determine the approximate month we start with the future value in 32 years:

$5,353 $5,442

future value in 6 months $5,517 $5,548

future value in 9 months $5,599 $5,601

future value in 9 months

and 5 days $5,603 $5,604

future value in 9 months

and 8 days $5,606 $5,606

7 0

3 years ago