Answer:
Purchases in August = $30000
Explanation:
Cost of golds sold = opening inventory + purchases - closing inventory
Purchase therefore would be
Purchases = cost of goods sold(COS) + closing inventory - opening inventory
Opening inventory in August = Closing inventory for July i.e (20%× august):
= 20% × 28,000 = 5600
Closing inventory in August = 20%× September COS
= 20%× 38,000 = 7600
Purchases in August
= 28,000+7600 - 5600
= $30000
Answer:
Contribution margin per unit: $42.9
Total contribution margin: $8,580
Explanation:
The contribution margin per unit is calculated by calculating the total contribution margin, which is basically the total sales, minus the costs of production, in this cae we have that we sold:
60 regular chairs
140 executive charis
Now the total in sales is:
Regular sales: $6,000
Executive chairs: $23,800
The variable cost of each is:
Regular chairs: $3720
Executive chairs: $17,500
We add up the sales and withdraw from it the total variable cost:
29,800-21,220=8,850
The total contribution margin is equal to $8850.
And the contribution margin per unit is given by dividing the total contribution margin by the number of units sold:
8850/200= 42.9
So the contribution margin per unit is 42.9 dollars.
Answer:
8.87%
Explanation:
Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested
IRR can be calculated with a financial calculator
Cash flow in year 0 = $-300,000
Cash flow each year from year 1 to 9 = $52,000 - $7,500 = $44500
Cash flow in year 10 = $44500 + $30,000 = $74500
IRR = 8.87%
To determine the value of IRR using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button.
<u>Calculation of retained earnings beginning balance:</u>
Retained earning beginning balance can be calculated using the following formula:
Retained earnings ending balance = Retained earning beginning balance + Revenue – Expenses - Dividends
Hence using the given information we can solve the equation as follows:
3,050 = Retained earning beginning balance + 1935 – 1065 - 550
3,050 = Retained earnings beginning balance +320
Retained earnings beginning balance = 3050-320 = $2,730
Hence, Retained earnings beginning balance is <u>$2,730</u>
<span>The embargo created an artificial drop in the supply of oil. How would a natural shortage differ from an embargo situation? A natural shortage of oil may lead to more people being cautious of how they spend their energy. This may also drive new ways for us to obtain energy. An embargo is a ban on a trade or commercial activity within a specific country. Different countries can put an embargo on a product that another one needs and it can hurt their overall economy and living situations. </span>