Why was the sack dress named so?

A cash-strapped young professional offers to buy your car with four, equal annual payments of $3,000, beginning 2 years from tod

kiruha [24]

Answer:

This means that receiving 9000 today is better for us as we will have more at the end of 6 years.

Explanation:

We need to first calculate what is the future value of payments in both scenarios. If we receive $9,000 today and invest it at 10% for 6 years we will have 9000*1.10^6=15,944

If we start reviving cash in 4 annual payments 2 years from now of $3000 we will have to find the future value of each individual payment and add them up.

First payment Future value = 3000*1.10^4=4392 (Money can be invested for 4 years at 10%)

Second payment future value = 3000*1.10^3=3993 (Money can be invested for 3 years at 10%)

Third payment future value = 3000*1.10^2=3630 (Money can be invested for 4 years at 10%)

Fourth payment future value = 3000*1.1=3300

Add them all up = 15315

This means that receiving 9000 today is better for us as we will have more at the end of 6 years.

5 0

3 years ago

Assume that the marginal cost (MC) of production is increasingincreasing. Can you determine whether the average variable cost

ki77a [65]

Answer:

YES - When marginal cost (MC) of production is increasing, the average variable cost (AVC) is increasing.

Explanation:

Marginal cost (MC) is the cost of producing an extra unit of output while Average variable cost (AVC) is the cost per unit of output produced.

When MC is below AVC, MC pulls the average down. This means that when MC is falling, AVC is falling

When MC is above AVC, MC is pushing the average up; therefore when MC is rising, AVC is rising.

The conclusion is that MC and AVC have a direct relationship and a rise in one will cause a rise in the other , therefore when the marginal cost (MC) of production is increasing, the average variable cost (AVC) is increasing.

3 0

3 years ago

Costco has started its operations in China through an e-commerce partnership with Alibaba. Which method of expanding internation

s344n2d4d5 [400]

Answer:

C. Importing, exporting and countertrading

Explanation:

The e commerce partnership with Ali baba will enable them (Costco) buy (import) and sell (export) goods using the internet, and also transfer money and data to execute these transactions.

Importation involves buying of goods or services from other countries.

Exportation means selling of goods and services to other countries.

Countetrading means the exchange of goods and services which are paid in part or whole with other goods and services.

3 0

3 years ago

Risoner Company plans to purchase a machine with the following conditions: Purchase price = $300,000. The down payment = 10% of

ser-zykov [4K]

Answer:

$62,160

Explanation:

Given:

Purchase price = $300,000

Down payment = 10% of purchase price = 0.1 × $300,000 = $30,000

Thus,

the cumulative amount to be financed = $300,000 - $30,000 = $270,000

The present value of an annuity of $1 per year for 8 years at 16% = $4.3436

Now,

Annual payment

= ( Cumulative Amount financed ) / ( Cumulative PV factor at 16% for 8 years)

= $270,000 / 4.3436

= $62,160.42

≈ $62,160

8 0

3 years ago

Highway 55 Studios has budgeted the following amounts for its next fiscal year: Total fixed expenses $ 1 comma 980 comma 000 Se

faust18 [17]

Answer:

Contribution per unit = Selling price - Unit variable cost

= $70 - $10 = $60

Break-even sales in units = Fixed cost

Contribution per unit

= $1,980,000

$60

= 33,000 units

If fixed cost reduced by $49,500, new fixed cost will be $1.930,500

33,000 = $1,930,500

$70 - VC

33,000(70 - VC) = $1,930,500

2,310,000 - 33,000VC = $1,930,500

2,310,000 - $1,930,500 = 33,000VC

379,500 = 33,000VC

379,500 = VC

33,000

VC = $11.50

Increase in variable expenses per unit

= $11.50 - $10 = $1.50

Explanation:

In this case, we need to determine the break-even point in units, which is fixed cost divided by variable expenses per unit. If total fixed expenses reduced by $49,500, the new total fixed expenses will be $1,930,500. Then, we will equate the break-even point in units to the new fixed cost divided by contribution per unit, which is selling price minus variable expenses per unit. Since break-even point in units, new fixed cost and selling price were known with the exception of variable cost, variable cost becomes the subject of the formula. The old variable expenses will be deducted from the new variable expenses so as to obtain increase in variable expenses per unit.

7 0

3 years ago