Answer:
FV= $1,930,661.48
Explanation:
Giving the following information:
Joe's starting salary is $80,000 per year. He plans to put 10% of his salary each year into a mutual fund. He expects his salary to increase by 5% per year for the next 30 years, and then retire. If the mutual fund will average 7% annually
We need to use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
FV= {8000*[(1.12^30)-1]}/0.12= $1,930,661.48
Answer:
Product costs are mostly prime costs (Variable cost). Now lets check where this misclassification occurs.
There are 3 stages of absorption costing.
Stage 1: Allocation
Stage 2: Apportionment
Stage 3: Absorption
Misclassification of product cost of product A occurs at Stage 1.
This means that the share of product cost of A, which is misclassified as selling cost will be equally shared with other products in the stage 2. This sharing of cost will lower the average cost per unit of product A and increase the average cost per unit of other products. Hence, Its true.
Eugene should not be upset because HIS PROPERTY VALUE HAS INCREASE. Sale tax refers to the consumption tax imposed by the government on the sales of goods and services at the point of sale. An increase in sale tax will automatically increase the value of the land and the house that Eugene has in that area. If he sells the land later or rent out the house, he will make more money from the sale.
This is the concept of financial arithmetic. To get the average cost when six units we shall proceed as follows;
Total cost of producing 5 units will be:
(average cost)*(number of units)
=5*30
=$150
Given that the marginal cost of producing the sixth unit is $60, then the total cost of producing six units will be:
150+60
=$210
