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valentinak56 [21]
3 years ago
13

The following information is available for Waterway Industries: Sales $640000 Total fixed expenses $150000 Cost of goods sold 44

0000 Total variable expenses 390000 A CVP income statement would report contribution margin of $490000. gross profit of $250000. gross profit of $200000. contribution margin of $250000.
Business
1 answer:
Bess [88]3 years ago
7 0

Answer:

The CVP Income Statement will Report a Contribution Margin of $250,000

Explanation:

The question is incomplete, Therefore, the completion is as follows:

A CVP Income Statement would report?

A CVP income statement replaces the gross profit computation in its report with the computation of the Contribution Margin.

The CVP report will therefore report as follows

The sales = $640,000

The Total Variable Expenses =$390,000

The Contribution Margin therefore =

The Sales - Total Variable Expenses

= $640,000- $390,000

= $250,000

Therefore, the CVP Income Statement will Report a Contribution Margin of $250,000

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Answer:

Please check the explanation below.

Explanation:

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Net Present Value of Refinance = -0.05x289,723 + 299.78x{(1-(1+0.007083)-36)/0.007083}

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c. For refinance loan to have net present value positive, let n payments are required,

NPV = -0.05x289,723 + 299.78x{(1-(1+0.007083)-n)/0.007083}

14,486.15 = 299.78x{(1-(1+0.007083)-n)/0.007083}

14,486.15x0.00783/299.78 =(1-(1.007083)-n)

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(1.007083)-n = 0.6577

(1.007083)n = 1.5204

Taking Log both sides,

n = log(1.5204)/log(1.007083)

n = 59.36

Hence, he would need to make 60 payments for making NPV of refinance as zero.

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