Answer:
Earning Before Interest and Taxes $3,704
Explanation:
Sales (2,200 * 16.25) 35,750
Less: Variable Costs (2,200 * 8.43) <u>(18,546)</u>
Contribution Margin 17,204
Less: Fixed Cost (9,500)
Depreciation Expense <u>(4,000)</u>
Earning Before Interest and Taxes <u>$3,704</u>
Answer: See Explanation
Explanation:
The payback period for both projects would be calculated as:
Alpha Project
Cost = $530,000
Annual net cash flow = $60,000
Payback period = Cash / Annual net cash flow
= $530,000 / $60,000
= 8.83
Beta Project
Cost = $170,000
Annual net cash flow = $18,000
Payback period = Cash / Annual net cash flow
= $170,000 / $18,000
= 9.4
We can see that Alpha Project is better as the payback period is lesser than Beta project
C. Limited
If you have a small amount of product/resources that means that it is rare, and therefore more valuable.
For example, in the U.S. economy, there is a limited amount of currency, and that is what makes the currency valuable.
Or the better example, in a game like Minecraft, the resource "diamond ore," is only worth value to the player because it is a Limited resource, and it does not spawn often.
Hope this helps!
The correct answer is letter B. Providing a delivery service. Making an increase in possession is ensuring that you have the refrigerator or whatever product that you are getting. The ability to feel the tangible touch of a product gives you the possession.
Answer:
The monthly withdrawals are $3,537.85 and will last for 23 years.
Explanation:
We have to calculate the monthly installment of an annuity:
PV 568,900.00
time 276 (23 years x 12 months)
rate 0.004333333 (5.2% = 5.2 / 100 = 0.052 per year we now divide by the 12 months of a year and get the rate for monthly withdrawals.
C $ 3,537.85