Amsted, Inc. is considering a project that will increase revenues by $2.5 million, cash operating expenses by $700,000, and depr
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Answer:
Ans. your monthly payment, for 30 years is $9,257.51 if you buy a property worth $1,000,000 and you make a down payment of $100,000
Explanation:
Hi, first we have to change the fixed rate in terms of an effective monthly rate, which is 1% effective monthly (12% nominal interest/12 =1% effective monthly). After that, take into account that the property is going to be paid in 30 years, but since the payments are going to be made in a montlhly basis, we have to turn years into months (30 years * 12 = 360 months).
After all that is done, all we have to do is to solve the following equiation for "A".
Where:
A= Annuity or monthly payment
r= Rate (effective monthly, in our case)
n= Periods to pay (360 months)
Everything should look like this.
Best of luck.
Answer:
Selling Price per unit = $287.5 per unit
Explanation:
Provided quantum of sales = 10,000 units
Cost statement for 10,000 units
Direct material = $100 10,000 = $1,000,000
Direct Labor = $30 10,000 = $300,000
Variable Overhead = $45 10,000 = $450,000
Fixed Overhead Costs = $635,000
Fixed Selling and administrative Cost = $115,000
Total = $2,500,000
Add: Profit mark up 15% = $375,000
Total Selling Value = $2,875,000
Selling Price per unit = $2,875,000/10,000 = $287.5 per unit