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rosijanka [135]
3 years ago
15

A magazine subscription is running out and you can renew it by sending $10 a year (the regular rate) or get a lifetime subscript

ion to the magazine for $100. Your cost of capital is 7%. How many years would you have to live to make the lifetime subscription the better buy
Business
1 answer:
dlinn [17]3 years ago
8 0

Answer:

15.7 years

Explanation:

We employ a mathematical approach to solve this;

Present value (PV) of $10 per year at start of year, for n years = $100 (lifetime subscription, life = n years)

Now, we need to get the equivalent amount at the end of each year. This is obtainable from the cost of capital. Which is 7% and that is same as 0.07.

Therefore, we are expecting a value of 1+0.07 = 1.07 and this brings the equivalent amount at the end of each year = 10*1.07

Now, this equivalent amount at the end of each year will give;

(10*1.07)(1.07^n - 1)/(0.07*1.07^n) = 100

Where n is the number of years

n = 15.7 years

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CRANE COMPANY Adjusted Trial Balance January 31, 2020 Debit Credit Supplies $900 Prepaid Insurance 1,800 Salaries and Wages Paya
GREYUIT [131]

Answer:

beginning supplies 1,600

Explanation:

With the following identity we will sovle for beginning supplies:

beginning + purchases = ending + expense

the left side are the input of supplies

and the right side are the output

we will plug into the formula and solve for beginning supplies

beg + 3,400 = 900 + 900

beg = 3,400 - 900 - 900 =  1,600

4 0
3 years ago
EcoFabrics has budgeted overhead costs of $1,039,500. It has allocated overhead on a plantwide basis to its two products (wool a
vichka [17]

Answer:

1. Cutting $1.80 per machine hour

Design $390 per setup

2. Wool product line $627,000

Cotton Product line $412,500

3. Overhead rate $2.10

4. Wool Product line $519,750

Cotton Product line $519,750

Explanation:

1. Calculation to determine the overhead rate using activity based costing.

Overhead rate using the activity based costing

Cutting = Overhead / Total Machine hours

= $396,000 / 220,000

= $1.80 per machine hour

Design = Overhead / Number of setups

= $643,500 / 1,650

= $390 per setup

2. Calculation to determine the amount of overhead allocated to the wool product line and the cotton product line using activity-based costing

Overhead allocated to the wool product line and the cotton product line

Wool product line = (110,000 * $1.80) + (1,100 * $390)

Wool product line= $198,000 + $429,000

Wool product line= $627,000

Cotton Product line = (110,000 * $1.80) + (550 * $390)

Cotton Product line= $198,000 + $214,500

Cotton Product line= $412,500

3.Calculation to determine the overhead rate using traditional approach.

Overhead rate using traditional approach

Overhead rate = Total Overhead / Direct labor hours

Overhead rate= $1,039,500 / 495,000

Overhead rate= $2.10

4. Calculation to determine What amount of overhead would be allocated to the wool and cotton product lines using the traditional approach

Overhead allocated using the traditional method

Wool Product line = $1,039,500 / 2

Wool Product line= $519,750

Cotton Product line = $1,039,500 / 2

Cotton Product line= $519,750

4 0
3 years ago
Calculate the cost of goods sold using the following information: Direct materials $ 298,500 Direct labor 132,000 Factory overhe
Virty [35]

Answer:

COGS= $680500

Explanation:

The cost of goods sold refers to the direct costs attributable to the production of the goods sold in a company. This amount includes the cost of the materials used in creating the goods along with the direct labor costs used to produce the goods. It excludes indirect expenses, such as distribution costs and sales force costs.

COGS=Beginning Inventory+Production during period−Ending Inventory

We need to calculate the production during the period.

Cost of manufactured period= Beginning work in progress inventory+ direct materials + direct labor + factory overhead - ending work in progress

Cost of manufactured period= 118,500+ 298,500 + 132,000  + 264,000 - 125,900 =$687,100

COGS= 232,100 + 687,100 - 238,700=$680500

5 0
2 years ago
Read 2 more answers
Alex applies for a home loan. The bank asks him to furnish a document as residential proof for processing the loan. Which docume
djverab [1.8K]

I think the awnser is C but i'm not for sure or it could be D but i'm going to go with C and if that's not the awnser then it's D

7 0
3 years ago
Read 2 more answers
Which of the following should you consider first when trying to pya for higher education?
Elan Coil [88]

Answer:

u should try to get a scholarship, u didn't get off any answers

7 0
3 years ago
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