Answer:
$685,000
Explanation:
First and foremost, the formula for determining the contribution margin ratio can be used to determine the target dollars sales as shown below:
contribution margin ratio=contibution margin/sales revenue
contribution margin ratio=16%
contribution margin required=pretax income+fixed costs
contribution margin required=$71,200+$38,400=$109,600
16%=$109,600/sales revenue
16%*sales revenue=$109,600
sales revenue=$109,600/16%
sales revenue=$685,000
Answer:
Bank A should be chosen.
Explanation:
Given:
Effective annual rate (EAR) of bank A = 10%
Bank B pays 9% compounded daily. EAR of bank B is calculated below:
EAR = 
Where, i is 0.09
n is compounding period that is 365 (since it is compounded daily)
EAR = 
= 1.0942 - 1
= 0.0942 or 9.42%
Bank B pays EAR of 9.42%
Based on EAR, Bank A should be selected as it pays higher EAR of 10%.
Elephant I would guess........
Debit Interest Expense [$480,000 x 8% x 360/360] = $38,400.00
<span>Credit Interest Payable = $38,400.00</span>
the answer to this is true