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Misha Larkins [42]
2 years ago
9

When Marilyn Monroe died, ex-husband Joe DiMaggio vowed to place fresh flowers on her grave every

Business
1 answer:
Brrunno [24]2 years ago
4 0

Based on the cost of the flowers and the number of years Joe DiMaggio was expected to live, the present value of the commitment was $2,389.26.

<h3>How much is the present value of the commitment?</h3>

First convert the interest and period to weekly figures:

Period:

= 52 x 30

= 1,560 weeks

Interest:

= 10.4% / 52

= 0.2% weekly

The present value will be that of an annuity because the amount is constant every week:

= Amount x (1 - (1 + rate) ^ -number of periods) / rate

= 5 x (1 - ( 1 + 0.2%) ⁻¹⁵⁶⁰) / 0.2%

= $2,389.26

Find out more on present value at brainly.com/question/25792915.

#SPJ1

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2 years ago
A company has an opening stock of 6,000 units of output. The production planned for the current period is 24,000 units and expec
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                                                Last year           Current year

Selling Price                      10                         10

Varaible Price                5                         6

Contribution Margin               5                               4

Break even is the point where total cost is equal to total revenue mean no profit and loss.

company earns the contribution margin after covering the variable cost, now only fix cost remains for break even.

Break Even using FIFO method :  first In first out system

Fix Cost                                                                            =     86000

contribution from opening units(6000*5)                            =     30000

Remaining Fix cost that should be Covered from

current year products                                                            =     56000

 

Units to be sold for break-even ( 56000/4)   = 14000

so we have break even units   6000+14000 = 20000

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Opening 6000*5              = 30000

Current   14000*4             = 56000

Profit                                   = 0

Break Even using LIFO method : Last in first out

Fix Cost                                                                            =     86000

Break even =  Fix Cost / Contribution margin

Break even =  86000/4 =21500

current production is 24000 which is higher than break even units so we can cover the fix cost from current year production because company is using lifo method. we do not need opening units for the break even.

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