Answer:
The cost price is the price you buy a product for. You need to compare the cost price to the selling price to know whether you got a profit or loss (did you make money or did you not).
If you don't know the cost price, you don't know whether you have a profit or loss. Of course everyone wants a profit (make money) so to determine a selling price the cost price is important.
Answer:
False, supply is not derived from a producer's desire to minimize profits.
Explanation:
Producers do not desire to minimize profits through supply, rather the desire to maximize profits through demands.
Answer:
Balance of Suppliers Account is $2200 debit
Explanation:
It is important to know that the Supplies Account increases on the debit side and decreases on the credit side.
On 1 February the account was $ 3080 and this was a debit since it was an existing balance.
Purchase during the year by Bonita Industries increased the Supplies Account. A debit entry of $2640 must be recorded.
Used supplies during the year decrease the Supplies Account. A credit entry of $3520 must be made
There for the balance left $2200(3080+2640-3520) is still on the increase side (debit).Hence the answer $2200 debit is correct.
Answer:
PV = $188,653.22
Explanation:
Given the following information, firstly we need to calculate present value of cash flow for the last 9 years. The present value of cash flow therefore
PVA2= $1,800 {[1 – 1 / (1 + 0.10 / 12)^108] / (0.10 / 12)}
PVA2= $127,852.84
Thus, present value of Cashflow today
PV = $127,852.84 / [1 + (0.08 / 12)]^84+ $1,800{[1 – 1 / (1 + 0.08 / 12)^84] / (0.08 / 12)}
PV = $188,653.22