Answer:
The answer is A. $5,784,000
Explanation:
[(1.08)/(1.11)] -1 = -3.6%
Thus one year forward rate is 0.60*[1 +(0.036)] = $5784
$5784 * 10 000 000= <u>$5,784,000</u>
Answer:
The certificate of deposit be worth $338496.8 at the end of five years if interest is compounded at an annual rate of 9%
Explanation:
Certificate of deposit of 220000 after 5 years @ 9% is calculated as below
As per the Present and future value tables of $1 at 9% presented
FVA of $ 1 after 5 years is 5.9847 and
PVA of $ 1 after 5 years is 3.88965
PV of 220000 will become = 220000*5.9847/3.88965
= $338496.8
Therefore, The certificate of deposit be worth $338496.8 at the end of five years if interest is compounded at an annual rate of 9%
Answer:
$635,000 and : 34%
Explanation:
Margins of safety is the difference between expected sales and the break-even point.
For Zhao, expected sales are 10,000 units
The break-even points in units = fixed cost/ contribution margin per unit
fixed costs = $429,000
Contribution margin per unit = selling price - variable costs per unit
=$187 - $122
=$65
break-even point in units = $429,000/$65
break-even point = 6600 units
Margin of safety = 10,000 - 6600 units
=3400 units
In dollars is equal to margin of safety in units x selling price
=3400 x 187
<u>=$635,000</u>
as a percent of expected sales.
=3400/10000 x 100
=0.34 x 10,000
=34%
Answer:
Dr Unearned rent revenue 16,800
Cr Rent revenue 16,800
Explanation:
Period 6 months
Period expired at year end which is from September to December = 4 months
December 31
Dr Unearned rent revenue 16,800
(4/6×25,200)
Cr Rent revenue 16,800
Unearned Rent Revenue was debited in order to reduced Liability while Rent Revenue was credited in order to increase revenue.
Answer:
a COST-BASED PRICING METHOD
Explanation:
COST-BASED pricing method is the type of pricing which involves summing the total unit cost of providing the product or services and adding a specific amount to the cost to arrive at the price. These costs includes all production cost in making the product available to the market and selling expenses incurred then add the desired amount of profit that the company wants to attain to come up the unit selling price of the product.
