Answer: a. $485
b. $15
c. 32.28%
Explanation:
a. how much will Jill save by paying within the discount period?
3% × $500 = 3/100 × $500 = 0.03 × $500 = $15
The amount saved will be:
= $500 - $15.
= $485
b) what will it cost Jill to retain the use of credit for 45 days?
This will be:
= 3% × $500
= 3/100 × $500
= 0.03 × $500
= $15
c) what is the annual interest rate of the "loan" (ie. what is the annual rate of 3/10, net 45)?
c) The annual interest will be calculated using:
= P x R x T
where,
I = interest = $15
P = principal = $485
R= rate of interest = Unknown
T= time factor = 15/365 = 0.0958
Then, annual Interest rate will be:
R = 15/ (485 x 0.0958)
R = 32.28%
Annual Interest rate is 32.28%
Answer:
3.52
Explanation:
Calculation to determine the target cost per unit?
Using this formula
Target cost per unit=Projected sales -Desired profit /Projected units
Let plug in the formula
Target cost per unit=$300,000-$36,000/75,000 units
Target cost per unit=$264,000/75,000 units
Target cost per unit=3.52 per unit
Therefore the target cost per unit is 3.52
Answer:
1. Many people do not trust businesses that sell products online, especially if they are not familiar with the company’s name. Yet they will walk into a new business in their city and shop with little concern. What causes the difference in people’s views of online businesses versus traditional businesses?
The idea of interactive with a non human entity as a computer make people feel acquard as they distrust what are the final intentions of the person behind the e-shop. They also feel fear as ther dont know where they can go to complain about some deal gone wrong.
2. Do you agree with Dontae that it is easier to shop in an actual store in a mall than from the same business online? Why or why not?
No, it is easier to buy online as the person do not need to expend the same time an energy in going and buying from a mall
3. What is your opinion of Jillian’s comparison between entering a credit card number online and handing the card to a clerk who checks it using a telephone line from the store to the credit card company?
I agree, it is the same as buying online, as the clerk could commit a crime as well as the person that is in the telephone.
Chapter 2 Discussion
4. What do you think of Toni’s idea of downloading music for free? Do you think this is legal? How can Toni be sure that she is engaging in legal and ethical behavior when she uses the freemusic site?
Is a good idea and it depends in the type of page you are browsing. If the internet page has a disclaimer saying that the music that is offering is free to download and is legal there is no unethical behavor in it.
Explanation:
Answer:
The correct answer is option b.
Explanation:
The contribution margin can be defined as part of the revenue that is not spent on the variable costs. The word contribution represents the part of the revenue that is not spent on variable costs and thus contributes to covering fixed costs.
It is an important concept in the break-even analysis.
There are several ways to calculate contribution margin. It can be calculated by deducting variable costs from total sales. It can also be calculated by deducting unit variable costs from the unit selling price. The contribution margin ratio is calculated by dividing the contribution margin per unit by unit selling price.
Answer:
34
Explanation:
Annual demand D = 4,200 bags
Ordering cost S = $10.70
Holding cost H = $76
Economic order quantity =
Economic order quantity =
Economic order quantity =
Economic order quantity =
Economic order quantity = 34.389388
Economic order quantity = 34