Answer:
The answer is: 2) operate his business as long as he rents at least 1 boat per month.
Explanation:
Since Bill doesn't have any fixed costs, then he should continue to work as long as he can rent at least 1 boat per month. The break even point is calculated by dividing the total fixed costs over contribution margin per unit, but since the total fixed costs equal 0, then any boat rented will be over the break even point.
Answer:
Joel would save tax of $540 if the stock was held for more than a year
Explanation:
If the stock is held for more than one year and then sold then the gain on sale would be long term capital gain
The long term capital gain would be charged at preferential rate of 15%
Calculate long term capital gain tax on sale
Long term capital gain (Sale price - Purchase price)*No of shares
Long term capital gain (58-31)*100
Long term capital gain $2700
Tax on long term capital gain 2700*15%
Tax on long term capital gain $405
Savings in tax 945 - 405
Savings in tax $540
Thus, Joel would save tax of $540 if the stock was held for more than a year
On FOB terms, the buyer:
1. Pays the cost of the goods, a car in this case.
2. Pays for transportation of the goods.
3. Pays import duties.
4. Pays for insurance.
However, advertising and salaries are general and administrative expenses and thus related to operation expenses and not production expenses.
In this case,
Assigned cost of the used car = 18,000+180+810+140 = $19,130
Options :
A)net present value of the $25,000.
B)future value of the $25,000.
C)internal rate of the return on the $25,000.
D)present value of $25,000.
Answer: B)future value of the $25,000.
Explanation: The Smith's calculation and subsequent result which yielded $31,000 refers to the future value of $25,000. The initial $25000 is the present value of the amount held. If the initial amount is saved or deposited over a certain number of years in an account which yields a certain rate of interest per annum and is compounded either on a monthly, yearly, quarterly or semiannual basis as the case may be, in this scenario above, the interest is called mounded annually. This initial amount will grow and yield an amount which is greater than the present deposit. This is called the future value of the initial deposit.
Answer:
1. Deductive
2. Inductive
3. Deductive
Explanation:
Deductive research is a form of reasoning that stems from existing theories that can be tested. Data is collected to test a theory and the results are analyzed. The first and third scenarios are deductive research works because there are existing theories or data that can be worked on. In the first instance, data on issues of turnover already exist. In the third scenario, there were theories to explain gender differences.
Inductive research proposes a theory after observation. This is applicable in the second instance where the manager proposes the theory that relates distance to absenteeism after close observation.