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BabaBlast [244]
3 years ago
9

Macy of New York sold LeeCo. of Chicago office equipment with a $5,500 list price. Sale terms were 4/10, n/30 FOB New York. Macy

agreed to prepay the $70 freight. LeeCo. pays the invoice within the discount period. What does LeeCo. pay Macy?
Business
1 answer:
podryga [215]3 years ago
5 0

Answer:

$5,350

Explanation:

LeeCo's total invoice = $5,500 (Macy's goods)+ $70 for freight charges (FOB sale New York)

If LeeCo. pays within the discount period it must pay $5,500 x 96% = $5,280 for the goods and $70 for the freight = $5,350

*Free on board (FOB) shipping point means that the buyer gets title of the goods at the moment they are shipped and is responsible for covering freight expenses.

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Capstone Investments is considering a project that will produce cash inflows of $11,000 at the end of Year 1, $24,000 in Year 2,
kherson [118]

Answer:

The correct answer is C.

Explanation:

Giving the following information:

Cash inflows:

Year 1= $11,000

Year 2= $24,000

Year 3= $36,000

To calculate the present value, we need to use the following formula:

FV= PV*(1+i)^n

Isolating PV:

PV= FV/(1+i)^n

Year 1= 11,000/(1.12)= $9,821.43

Year 2= 24,000/(1.12^2)= $19,132.65

Year 3= 36,000/(1.12^3)= $25,624.09

Total= $54,578.17

3 0
3 years ago
You have just retired with savings of $2 million. If you expect to live for 57 years and to earn 7% a year on your savings, how
galben [10]

Answer:

Annual withdraw= $143,023.66

Explanation:

Giving the following information:

Present value (PV)= $2,000,000

Number of periods (n)= 57

Interest rate (i)= 7% a year

<u>To calculate the annual withdrawal, we need to use the following formula:</u>

Annual withdraw= (PV*i) / [1 - (1+i)^(-n)]

Annual withdraw= (2,000,000*0.07) / [1 - (1.07^-57)]

Annual withdraw= $143,023.66

6 0
3 years ago
Telecom uses activity-based costing to allocate all manufacturing conversion costs. Telecom produces cellular telephones; each p
Alchen [17]

Answer:

The correct answer is $70

Explanation:

Giving the following information:

$40.00 of direct materials

includes 20 parts

requires 5 hours of machine time.

Activity (Allocation Base) - Cost Allocation Rate

Materials handling (Number of parts) - $0.50 per part

Machining (Machine hours) - ​$14.00 per machine hour

Assembling (Number of parts) - $1.00 per part

Packaging (Number of finished units) ​- $2.00 per finished unit

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Machining= 14*5hours= $70

5 0
3 years ago
Soar Incorporated is considering eliminating its mountain bike division, which reported an operating loss for the recent year of
makvit [3.9K]

Answer:

$133,000 decrease

Explanation:

The computation of the impact on the operating income is shown below:

Sales for the year    $1,052,000

Less:

Variable cost -$862,000

Contribution margin $190,000

Less:

Fixed cost for 30% of $190,000   -$57,000

Impact on the operating income $133,000

This amount reflects the decrease in the operating income

5 0
3 years ago
Kelly Addison is a designer clothing buyer for a chain of department stores. She has gone through several negotiation certificat
Yanka [14]

Full question:

Kelly Addison is a designer clothing buyer for a chain of department stores. She has gone through several negotiation certification programs and is considered an expert negotiator by her peers.

-When Kelly sees value in a product but does not want to pay the offered price, she often offers to split the difference between what she wants to pay and what the seller wants. Which of the following would be most likely to stall the negotiations with Kelly?

A)accepting the offer to split the difference

B)making another pricing counteroffer

C)offering better delivery and payment terms if she matches the asked price

D)standing firm on price but offering a discount for the second order

Answer:

<u>B) making another pricing counteroffer</u>

<u>Explanation:</u>

We are told that Kelly Addison is an expert negotiator and has received several negotiation certification programs. She also has a policy in which whenever she sees value in a product but does not want to pay the offered price, she splits the difference between what she wants to pay and what the seller wants.

Thus, making another pricing counteroffer <u>may stall the negotiations with Kelly.</u>

6 0
4 years ago
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