1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Finger [1]
2 years ago
7

Today, your dream car costs $62,200. You feel that the price of the car will increase at an annual rate 2.2 percent. If you plan

to wait 6 years to buy the car, how much will it cost at that time?
Business
1 answer:
Savatey [412]2 years ago
5 0

Answer:

The dream car will cost $70,875 in 6 years time

Explanation:

Here, we are interested in calculating the amount a car will cost if we know the annual appreciation rate of the cost and we decide to wait for some years to purchase the car in question.

To calculate the cost at that time, let’s we shall be using a modification of the compound interest formula.

The cost at that time will be;

C = I(1 + r)^t

Where C is the cost after six years which is unknown

I is the present cost which is $62,200

r is the appreciation percentage = 2.2% = 2.2/100 = 0.022

t is the time which is 6 years

Substituting these values in the modified equation, we have;

C = 62,200(1 + 0.022)^6

C = 62,200(1.022)^6

C = $70,875.44

To the nearest whole amount, it should be $70,875

You might be interested in
Firms that follow variable-cost pricing Multiple Choice sell their products at lower net prices abroad than in the domestic mark
IgorLugansk [536]

Answer:

Sell their products at lower net prices abroad than in the domestic market

Explanation:

Variable costing is a product costing method where only the variable manufacturing cost like the cost of direct materials ,labor and the variable manufacturing overhead are factored into the cost of production. This does not consider a complete cost like the absorption method of costing and as a result , the final overall cost is lower,

Using variable cost males it possible to sell products at lower net prices abroad compared to the domestics market as the tax laws of various country requires absorption method , hence it is not captures using variable costing.

7 0
3 years ago
Korey is planning to open a comic book store near his home. after completing a population survey for 3,520 homes in a 5 mile rad
astraxan [27]

Kids in grade school have a maximum percentage of 32 reasons that Option (d) is the correct answer.

<h3>why are the grade-school-aged kids surveyed?</h3>

Korey did the market analysis section of his business plan after conducting a population survey of 3,520 homes within a 5-mile radius.

He discovered that younger children who read comic books as children are more likely to read them as adults, resulting in a current and future client base.

For more information about the market analysis survey, refer below

brainly.com/question/3886071

6 0
2 years ago
Read 2 more answers
Think of a business idea that offers opportunity for customer credit. Assuming that you want to adopt this idea, what criteria w
mezya [45]

Answer:

an example for a company that offers back customers credit is Jimmy Johns, they have online rewards that you can sign up with you or phone number or online to earn points for your meals. When you sign up they promote you to go buy a sandwich for your first free sandwich, after that every time you come back and buy something you will be racking up points for free things like sandwiches, chips, cookies, pickles, and drinks.They also have special offers like on your birthday you get a free sub (and after you sign up).  If I wanted to do something similar with my business I make would make a rewards systems where you earn points for discounts.

Explanation:

Identify a business idea with which you can proceed. For example, you start a business that designs and creates landscaping for customers (front garden space, back patio, and so on).

This type of business provides opportunity for consumer credit, as most people would not want to pay a huge amount upfront in cash or even through credit cards.

Since the only other way is to offer credit facility, you will have to make a list of questions. You will then have to research the customer’s credit worthiness.

Check for the customer’s credit rating with the credit- and information-management companies, such as TransUnion or Equifax.

Check for the customers’ current financial positions. You can do so by finding out whether they have a secure job or a well-performing business, number of earning members in the family, and so on.

Depending on the information you acquire, you may decide either to offer complete credit, with a relatively shorter credit period, or only offer a certain percentage of credit spread across a wider credit period.

7 0
2 years ago
Rey Company’s single product sells at a price of $216 per unit. Data for its single product for its first year of operations fol
erastovalidia [21]

Answer:

1. Using Absorption Costing

Income Statement

Sales    20,000 X $216                             = $4,320,000

Less: Cost of Goods Sold (Note 1)            =($1,240,000)

Gross Margin                                             = $3,080,000

Less: Operating Expenses

Selling and Administrative Expense         = ($560,000)

(Note 2)                                                        

Net Income                                                  = $2,520,000

Note:

  1. Cost of goods Sold = All the direct variable cost + direct fixed cost = Direct materials + Direct Labor + Direct Overhead = $20 +$28 + $6 = $54 per unit, Total = $54 X 20,000 units = $1,080,000 + Fixed cost = $160,000 = $1,240,000
  2. Selling And Administrative Expense = Variable + Fixed, Variable = $18 X 20,000 units = $360,000, Fixed Expenses = $200,000, Total = $560,000

2. Using Variable Statement

Sales    20,000 X $216                             = $4,320,000

Less: Variable Costs

Direct Material $20 X 20,000                    = ($400,000)

Direct Labor  $28 X 20,000                       = ($560,000)

Variable Overhead $6 X 20,000               = ($120,000)

Variable Selling Expense $18 X 20,000    = ($360,000)

Contribution Margin                                     = $2,880,000

Less: Fixed Costs

Fixed Overhead                                            = ($160,000)

Fixed Selling & Administrative                     = ($200,000)

Net Income                                                    = $2,520,000

Note: Under Variable Statement first variable expenses are deducted to get the value of contribution, and then fixed expenses are deducted to get net income, whereas in absorption costing firstly manufacturing expenses are deducted to get gross margin and then operating expenses like selling and administrative expenses are deducted to get the net income.

But Net income is same in both cases.

5 0
3 years ago
During 2019, Dowdy, a C corporation, realized a long-term capital gain of $8,000 from the sale of a tract of land, a short-term
postnew [5]

Answer:

The answer to the following question is $4000.

Explanation:

Dowdy which is a C corporation, has a total of $14,000 in capital gain, in which $8000 comes from sale of tract land and rest of $6000 comes from sale of stock. And the company also has a capital loss of $18,000. So here the company is having a long term capital loss of $4000 ( $18,000 - $14,000 ), and this C corporation can deduct this long term capital loss from their taxable income ( the year in which loss was incurred ) . If in a situation, loss is not deducted from this year , then it can be carried 3 years or 2 years or even 1 years back and if there is capital gain , it can be deducted from it.

8 0
3 years ago
Other questions:
  • Priscilla has the following inventory information.
    6·1 answer
  • How does globalization impact the u.s. economy
    6·1 answer
  • Suppose that you have the option to buy the car with a 3 year car loan or lease the car during the same period of time. The 3 ye
    7·1 answer
  • The catapult systems repair crew on an aircraft carrier is responsible for repairing the system that launches the aircraft from
    8·1 answer
  • A small business owner is skeptical about online transactions. They are worried that information may be stolen in transmission o
    12·1 answer
  • Home Bepot Inc. has a cost of equity of 11.3 percent. The company has an aftertax cost of debt of 4.9 percent, and the tax rate
    6·1 answer
  • $ 485,000 $ 432,000 $Enter a dollar amount Enter percentages rounded to 0 decimal places % Inventory $ 786,000 $ 617,000 $Enter
    9·1 answer
  • 3. (01.02 MC)
    6·1 answer
  • In contrast to _______ and _______ the obligations of corporations are separate and distinct from the personal obligations of th
    14·1 answer
  • when discussing a project with bob, you say, "the project plan presented last week has a couple of issues that need to be addres
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!