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Andrej [43]
3 years ago
5

An investment of $9,875 earns 4.8% interest compounded monthly over 12 years. Approximately how much interest is earned on the i

nvestment? a. $4,740 b. $7,458 c. $7,672 d. $17,567 Please select the best answer from the choices provided A B C D
Business
1 answer:
Sladkaya [172]3 years ago
3 0

Answer:

Option (c)  $7,672

Explanation:

Data provided in the question:

Investment amount i.e principle = $9,875

Interest rate,r = 4.8%

Time, t = 12 years

Now,

Future value = Principle ×\left( 1 + \frac{r}{n} \right)^{\Large{n \cdot t}}

n = number of times compounded per year

Future value == 9875\times\left( 1 + \frac{ 0.048 }{ 12 }\right)^{\Large{ 12 \cdot 12 }}

Future value =9875\times{ 1.004 } ^ { 144 }

Future value =9875\times1.776866

Future value = $17,546.55

Also,

Future value = Principle + Interest

Therefore,

$17,546.55 = $9,875 + Interest

or

Interest = $17,546.55 - $9,875

= 7671.55 ≈ $7,672

Hence,

Option (c)  $7,672

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Answer:

The conversion cost per equivalent unit is $3.31

Explanation:

The computation of the conversion cost per equivalent unit is shown below:

= Total conversion costs ÷ Total equivalent units

where,

Total conversion cost = completed units + Conversion costs during April

                                    = $6,000 + $35,000

                                    = $41,000

And, the total equivalents units equal to

= Finished good units × percentage of completion + ending work in process units  × percentage of completion

= 11,500 units × 100% + 1,500 units × 60%

= 11,500 units + 900 units

= 12,400 units

Now put these values to the above formula  

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On December 31, the Accounts Receivable ending balance is $80,000. Assume that the unadjusted balance of Allowance for Uncollect
kkurt [141]

Answer:

$6,100

Explanation:

Calculation to determine what The amount of bad debt expense recorded on December 31 will be:

Using this formula

Bad debt expense=(Estimated % of accounts receivable*Accounts Receivable ending +balance)+Unadjusted balance of Allowance for Uncollectible Accounts

Let plug in the formula

Bad debt expense=(7%*$80,000)+$500

Bad debt expense=$5,600+$500

Bad debt expense=$6,100

Therefore The amount of bad debt expense recorded on December 31 will be:$6,100

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3 years ago
For the coming year, Cleves Company anticipates a unit selling price of $100, a unit variable cost of $60, and fixed costs of $4
Alexeev081 [22]

Solution :

1. The break even sales in units is given by :

   Break even sales in units = $\frac{\text{fixed cost}}{\text{contribution per unit}}$

Where, contribution per unit = selling price per unit - variable cost per unit

The anticipated break even sales in units of Cleaves company in the coming year is :

Break even sales in units = $\frac{480,000}{40}$

Contribution per unit = $ 100 - $ 60

                                   = $ 40

So the company anticipates its breakeven sales at 12,000 units.

2. In order tot earn profit the sales generated should overcome the breakeven point. The desired profit is $240,000, the sales required to earn the desired profit can be computed using the formula :

Desired sales in units = $\frac{\text{fixed cost + desired cost}}{\text{contribution per unit}}$

                                    $=\frac{480,000+240,000}{40}$

                                    = 18,000 units

Thus, the sales in units required to earn a profit of $ 240,000 are 18,000 units.

3. The sales in excess of the breakeven point would yield a profit on the contrary the sales below the breakeven point would result in a loss.

In the given sales in dollar =  breakeven sales in units x selling price per unit

                                           = 12,000 x 100

                                           = $ 1,200,000

∴ the sales above $1,200,000 would result in a profit whereas the sales below $1,200,000 would result in loss.

The cost volume profit chart below indicates the profit, loss, breakeven at different sales levels :

Sales levels           Result

1,200,000          Breakeven

1,000,000           Loss

800,000             Loss

400,000             Loss

200,000            Loss

4. The income on sale of 16,000 units is computed below :

Particulars                        Amount is $

Sales                                 1,600,000

Less : variable cost           960,000

Contribution                      640,000

Less : Fixed cost               480,000

Profit                                  160,000

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