Answer:
The interest expense will be recorded when the first interest payment is made $3720
Explanation:
Interest expense = issue price x market rate x n/12
= 62000 x 12 x 6/12
= $3720
Answer:
tank tops, and to some extent, wages paid to the other yoga instructors
Explanation:
Variable costs are costs that change as the level of activity in a business or production set-up changes. They differ from fixed costs which remain constant irrespective of the change in the level of activity.
For Sonia's yoga studio, variable costs will change as the number of students taking the yoga classes and those buying yoga clothing change. Accordingly, the identified costs for Sonia will react as follows to the change in the level of activity (number of customers and students).
- The cost of tank tops: as customers buying yoga clothing increases, the cost spent on tank tops will necessarily increase.
- Wages paid to the other yoga instructors: as more students enroll for yoga classes, Sonia, may increase the number of students in each class to an extent. However, if the number of students continue to increase beyond the limit for each class, Sonia may need to increase the number of classes and employ more instructors (or increase the number of hours for the current instructors), thus leading to an increase in wages. Thus, wages, though fixed in the short term, becomes variable when activity increases significantly.
- Lease on the studio space: lease will remain fixed since the space occupied as the yoga studio is the same.
- Insurance on the studio: the insurance cost on the studio will equally remain fixed since it will be a percentage of the value of the studio.
Therefore, the cost of the tank tops and the wages paid to the other yoga instructors (to some extent) are variable costs.
Answer:
$25 per setup
Explanation:
With regards to the above, activity rate is computed as;
= Activity cost pool resources / Activity driver
Activity cost pool resources = $125,000
Activity driver = 5,000
Activity rate for machine setup = $125,000/5,000 = $25 per setup
Answer:
Importance of physiotherapist:
1. They help people affected by injury,illness or disability through movement and exercise,manual therapy, education and advice.
2. They maintain health for people of all ages, helping patients to manage pain and prevent diseases.
3. Manage heart and lungs problem.
4. Recover from or prevent a sports injuries.
Importance of dentists:
1. Dentists helps to keep your teeth and mouth healthy.
2. It helps to prevent from tooth decay.
3. Protects against gum diseases, which can lead to tooth decay.
Answer:
The price of the stock today is $21.58
Explanation:
The dividend is growing by three different growth rates. Thus, the three stage growth model of DDM will be used to calculate the price of the share today. Under DDM approach, we discount the expected dividends by the required rate of return to estimate the fair value of the stock today. The terminal value is calculated when the dividend growth becomes constant forever. To calculate the price of the stock today, we use next period's dividend D1.
The price per share = D1 / (1+r) + D2 / (1+r)^2 + ... + [(Dn * (1+g) / r - g) / (1+r)^n]
Price per share = 2 * (1+0.06) / (1+0.12) + 2 * (1+0.06) * (1+0.04) / (1+0.12)^2 + [(2 * (1+0.06) * (1+0.04) * (1+0.02) / (0.12 - 0.02) / (1+0.12)^2]
Price of stock today = $21.578 rounded off to $21.58
