Answer:
$480
Explanation:
Calculation to determine what The sales quantity variance that would complement the variance calculated in the previous question is:
First step is to calculate Sales mix: budget for
AR-10
Total units: budget = 2,000 + 6,000
Total units: budget = 8,000
Actual units = 2,800 + 5,600
Actual units= 8,400
Sales mix: budget: 2000/8000
Sales mix: budget = 25%
(8,400-8,000) x.25 x $1.80
= $180 favorable
For ZR-7:Sales mix: budget: 6000/8000 = 75%(8400-8000) x.75 x $1.00 = $300
favorableTotal quantity variance: $180 + $300 = $480
.
Therefore The sales quantity variance that would complement the variance calculated in the previous question is:$480
The correct answer should be b. the cost of groceries.
Since the most correct answer would be production costs, in this case, the cost of groceries is the production cost as it is the cost of what you need for production.
Answer:
(a) What is the net present value of this potential investment?
Net present value of Investment is $(3,903)
(b) Should you invest in this machine?
We should not invest in this investment because Net present value of this investment is negative by discounting Minimum acceptable rate of return.
Explanation:
Present Values:
Revenue $144,146
O&M Cost ($48,049)
Initial Investment <u>$(100,000)</u>
Net Present value $(3,903)
Working :
Present Value Calculation = P x ( (1- ( 1 + r )^-10) / r
Revenue = $21,000 x ( (1- ( 1 + 0.075 )^-10) / 0.075 = 144,146
O&M Costs = $7,000 x ( (1- ( 1 + 0.075 )^-10) / 0.075 = 48,049
Answer:
By what percentage did the price of a dozen eggs rise?
- [($2.75 - $0.96) / $0.96] x 100 = 186.46%
By what percentage did the wage rise?
- [($21.26 - $14.28) / $14.28] x 100 = 48.88%
In order to earn enough to buy a dozen eggs, a worker had to work <u>4.04</u> minutes in December 2000 and <u>7.76</u> minutes in December 2015.
- ($0.96 / $14.28) x 60 = 4.04 minutes
- ($2.75 / $21.26) x 60 = 7.76 minutes
Workers' purchasing power in terms of eggs between 2000 and 2015.
- purchasing power in terms of eggs in 2000 = 14.875 dozens of eggs per hour
- purchasing power in terms of eggs in 2015 = 7.76 dozens of eggs per hour