We won't have enough resources for everyone to survive
Answer:
Explanation:
Account: Cash Account Dollar amount: $70,000
Account: Paid-in capital Dollar amount: $70,000
The amount is shown below:
= Deposit amount × number of classmates + purchase of stock
= $20,000 × 3 + $10,000
= $60,000 + $10,000
= $70,000
Only this two account is required i.e cash account and the paid-in capital account
Answer: $516
Explanation:
Net Present value is the present value of inflows less present value of outflows.
The project has annual inflows of $54,000 except in 4th year where it will have inflows of $65,000 because the salvage value will be added to the inflows.
Present value of inflows = 54,000/1.12 + 54,000/1.12² + 54,000/1.12³ + 65,000/1.12⁴
= $160,516
Net Present Value = 160,516 - 160,000
= $516
Answer:
(a)
Mathematical Equation for break-even
F = QP - QV
Where
F = fixed cost
Q = Break-even quantity
P = Selling price
V = Variable cost
F = Q ( P - V )
Q = F / ( P - V )
Q = $319,800 / ( $650 - $450 )
Q = $319,800 / $200
Q = 1,599 units
(b)
Contribution Margin = Price per unit - Variable cost per unit
Contribution Margin = $650 - $450 = $200
Break-even Point in Units = Fixed Cost / Contribution margin per unit
Break-even Point in Units = $319,800 / $200 = 1,599 units
Explanation:
Mathematical equation use the the break-even equation which represent the behavior of each element towards the break-even point.
Contribution per unit method use the contribution of each unit to calculate the break-even point.
Answer:
d. $44,161
Explanation:
The computation is shown below:
The present value of the periodic interest to be paid on the bonds is
= Face amount × interest rate × present value of an annuity at 6% for 10 years
= $100,000 × 6% × 7.36009
= $44,161
Refer to the present value of an annuity table
On a semiannual basis, the interest rate is half and the time period doubles =. The same is applied in the above calculation.
