Answer:
total output.
Explanation:
for example, a company manufactures 10,000 units of A. Its total variable costs are $50,000, and its total fixed costs are $25,000.
The average variable cost = $50,000 / 10,000 = $5 per unit of A
The average fixed cost = $25,000 / 10,000 = $2.50 per unit of A
The average total cost = $75,000 / 10,000 = $7.50 per unit of A
Answer:
B.$513,000
Explanation:
The pension liability of a company as at December 31, is to be calculated in the following manner:
Pension liability=Projected benefit obligation-Plan Assets(fair value)
=1,250,000-737,000
=$513,000
So based on the above discussion, the answer is B.$513,000
Answer:
$77,217
$11,289
Explanation:
Fist we will calculate the present value of $10,000 payment
A fix Payment for a specified period of time is called annuity. The discounting of these payment on a specified rate is known as present value of annuity. The value of the annuity is also determined by the present value of annuity payment.
Formula for Present value of annuity is as follow
PV of annuity = P x [ ( 1- ( 1+ r )^-n ) / r ]
Where
P = Annual payment = $10,000
r = rate of return = 10% / 2 = 5%
n = number of period = 5 years x 2 semiannual payments per year = 10 payments
PV of annuity = $10,000 x [ ( 1- ( 1+ 0.05 )^-10 ) / 0.05 ]
PV of Annuity = $77,217
Now we will use the discounting method to calculate the present value of lump sum payment of $20,000
Present value = Future value x Present value factor
PV = FV x ( 1 + r )^-n
PV = $20,000 x ( 1 + 0.1 )^-6
PV = $11,289
Answer:
Description:
They underwrite, distribute, and design investment securities for corporations to help them raise capital.
Financial Institution: Investment banks
Description:
They are established by an employer to facilitate and organize employee retirement funds. They are asset pools that invest in securities that have a potential to give stable returns.
Financial Institution: Pension Funds
Description:
With the use of advanced investment techniques, these largely unregulated portfolios are invested in securities. The investment objective is to offset potential losses by investing in counterbalancing securities. They are open to only a select class of investors.
Financial Institution: Hedge Funds
Answer
The answer and procedures of the exercise are attached in the following archives.
Explanation
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
1. Insurance expense for 6 months = 12,960 x 6/36
= $2,160
Prepaid insurance on December 31, 2021 = 12,960 - 2,160
= $10,800
2.Interest expense for 2 months = 220,000 x 12% x 2/12
= $4,400
Kindly comment if you need further assistance. Thanks
