Answer:
A.) Project A only
Explanation:
Given that
For project A
Pay back = 2.9 years
Net present value = $4,200
For project B
Pay back = 3.1 years
Net present value = $26,400
Based on the above information and payback decision rule, The project A should be accepted as it it contain less period compared to the project B i.e 2.9 years to 3.1 years
Hence, the correct option is a.
Answer: $16,614.78
Explanation:
As you are making a constant deposit every year beginning immediately, this is an Annuity due.
The value in 3 years will be:
= Amount deposited * (1 + i) * (( 1 + i) ^n - 1) / i
= 5,000 * (1 + 5.2%) * (( 1 + 5.2%)³ - 1) / 5.2%
= $16,614.78304
= $16,614.78
The Breakeven point in Dollars is $25,000
Breakeven point in Dollars is computed as;
= Fixed cost / Contribution margin ratio
First, we need to compute the contribution margin ratio
= Contribution margin / Revenues
= $22,500 / $37,500
= 0.6%
Then,
Breakeven point in Dollars
= Fixed cost / Contribution margin ratio
= $15,000 / 0.6%
= $25,000
Therefore, Company Z Breakeven Point in Dollars is $25,000
Lear more at : brainly.com/question/25694199
Answer:
$90,000
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 cost - low cost) ÷ (High machine hours - low machine hours)
= ($234,000 - $210,000) ÷ (24,000 hours -20,000 hours)
= $24,000 ÷ 4,000 hours
= $6
Now the fixed cost equal to
= High cost - (High machine hours × Variable cost per hour)
= $234,000 - (24000 hours × $6)
= $234,000 - $144,000
= $90,000
The high cost is computed below:
= 20,000 hours × $10.50
= $210,000
And, the low cost would be
= $24,000 hours × $9.75
= $234,000
