When the price level is falling to a negative zone, the economy is experiencing deflation, I believe.
Answer:
sales is $2,500,000
Explanation:
The target sales for the company to achieve a net income of $450,000 in the current year equals the net income plus variable cost plus the fixed costs.
To understand this better,let us use the net income formula:
net income=sales-variable costs-fixed costs
by changing the subject of the formula,we the formula for sales:
sales=net income+variable costs+fixed costs
variable costs=sales*70%=0.7 sales
sales=$450,000+$300,000+0.7 sales
sales-0.7 sales=$750,000
0.3 sales=$750,000
sales=$750,000/0.3=$2,500,000
In order for earnings from a second or part-time job to be considered as part of a lender’s income evaluation, the applicant must have been employed for at least two years, and the employment must be expected to continue.
The basis for one's pleasure or dissatisfaction with their financial condition can be defined as income evaluation. Additionally, it might engender a sense of fairness or unfairness in how income is distributed, which might bring about societal change or stabilize the situation.
Investors can determine a property's market worth based on the income it is currently producing by using the income approach to appraisal. Investors can assess if a deal fits their aims and requirements by understanding the cash flow property can produce.
Learn more about income evaluation here:
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Answer:
a. $0.98
b. 6,000 container
Explanation:
a. The computation of the incremental contribution margin per container is shown below:
= Drop selling price - total variable manufacturing cost - drop selling price × sales commission - sale value in raw form × basis
= $4.40 - $0.95 - $4.4 × 5% - 3 × 3 ÷ 4
= $0.98
b. The minimum number of containers of candy sold each month is
= (Per month salary paid to sales person + Master candy maker salary) ÷ ( incremental contribution margin per container)
= ($2,000 + $3,880) ÷ $0.98
= 6,000 container
We simply applied the above formulas so that the a and b part could arrive
Answer:
NPV = $0.89 million
Explanation:
The net present value is an important concept in evaluation a project. It calculates the return a project provides when discounted at the required rate. The initial cost involved in the project is deducted from the discounted cash flows provided by the project and if the NPV is positive, the project should be proceeded with.
The formula for NPV is,
NPV = CF1 / (1+r) + CF2 / (1+r)^2 + ... + CFn / (1+r)^n - Initial outlay
NPV = 7 / (1+0.18) + 7 / (1+0.18)^2 + 7 / (1+0.18)^3 + 7 / (1+0.18)^4 + 7 / (1+0.18)^5 - 21
NPV = $0.89 million
