Answer:
The selling price should be $66K.
Explanation:
Capital Budgeting defines the future value as present value times the interest rate over the years FV=(1+i)^n, the following table shows both future values for Neighbor’s house and mine to calculate the differences.
Future value (FV) = Present value (PV) + (1 + Interest rate)n, where n is raised to the power of the number of years.
FV = PV +p (1+r) -30
PV = 60000
= $60000 (1+0.075) - 30
= $60000 (0.11422)
= $6859.26 + $60000
= $66853.26
.
Given this estimate, my selling price will now be $66K, making a profit of $5K, this way the future seller can either choose to buy my home or any other in the neighborhood since the future value will be the same even though the interest rate is 0.5% higher.
Answer:
Direct material= $5,600
Explanation:
<u>First, we need to calculate the direct labor added to Work in Process:</u>
Direct labor= allocated overhead / predetermined overhead rate
Direct labor= 6,400 / 0.8
Direct labor= $8,000
<u>Now, by difference, the direct materials:</u>
Direct material= Ending balance - allocated overhead - direct labor
Direct material= 20,000 - 6,400 - 8,000
Direct material= $5,600
In most case, the average amount of time between price changes for gasoline is <u>two to three weeks</u>.
<h3>What is a price changes?</h3>
Most time, a price changes often come about because of changes in the conditions of demand and supply. A gasoline prices tend to always increase when the available supply of gasoline decreases relative to real or expected gasoline demand or consumption.
Some factors that change the price of gasoline are:
- Crude oil prices
- Refining costs
- Taxes
- Distribution
- marketing costs.
Read more about price changes
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Answer:
B. Market or customer organization
Explanation:
This type of organization is organized by customer type in order to ensure that the different expectations of the customer groups are met by a customized service approach. Since Denim Blue Jean Corporation caters to men, women, children, babies, toddlers, and teens, this is the best approach for the organization.
Answer:
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