Answer:
$11,215.24
Explanation:
After retirement:
Annual Withdrawal = $100,000
Period = 20 years
Annual Interest Rate = 7%
Amount required at retirement = $100,000 * PVIFA(7%, 20)
Amount required at retirement = $100,000 * (1 - (1/1.07)^20) / 0.07
Amount required at retirement = $100,000 * 10.5940
Amount required at retirement = $1,059,400
Before retirement:
Period = 30 years
Annual Deposit * FVIFA(7%, 30) = $1,059,400
Annual Deposit * (1.07^30 - 1) / 0.07 = $1,059,400
Annual Deposit * 94.46079 = $1,059,400
Annual Deposit = $11,215.24
So, you should contribute $11,215.24 each year into your retirement fund.
Answer:
$35 per hour
Explanation:
Data provided;
The John has 2 alternatives to choose from
Alternative 1 offers him $50 per hour
Alternative 2 offers him $35 per hour
John opts for the Alternative 1 i.e $50 per hour
Now,
The opportunity cost is given as the next high valued alternative and for the given question, we have the next high valued alternative of $35 per hour
Hence,
the opportunity cost of choosing the alternative 1 i.e job offering $50 per hour is $35 per hour
Answer:
Net operating income= 43,000
Explanation:
Giving the following information:
Selling price= $80
Production= 3,000 units
Sales= 2,750 units
Variable manufacturing costs $38 per unit
Variable marketing costs $ 2 per unit
Fixed manufacturing costs $60,000 per month
Administrative expenses, all fixed $12,000 per month
Ending inventories:
Finished goods 750 units
<u>Under the absorption costing method, the cost of goods sold includes the fixed manufacturing overhead. We need to calculate the unitary fixed overhead:</u>
Fixed unitary overhead= 60,000/3,000= $20 per unit
Income statement:
Sales= 2,750*80= 220,000
COGS= 2,750*(38 + 20)= (159,500)
Gross profit= 60,500
Variable marketing= 2,750*2= (5,500)
Administrative expenses= (12,000)
Net operating income= 43,000
Answer:
d) The value of equity is $0
Explanation:
Bank loans are classified as performing and nonperforming loans. Nonperforming loans that stay for over a long period (usually 12 months) are considered to be a loss.
When a bank makes a loss on loans (loan goes bad due to nonrepayment) they make provisions and debit the business equity for the loss.
The given loan amount is $800 and the bank had to provision 5% of that amount.
Loss from loan= 800* 0.05= $40
This is deducted from equity= 40- 40= $0
A market segment is a subgroup of people or organizations that have one or more characteristics in common that cause them to have the same product needs. Everyone needs water to drink, but does everyone need bottled water? For companies to successfully reach their precise customer, they need to divide a market into similar and identifiable segments through market segmentation.
The main reason companies divide markets into identifiable groups is so that the marketing team can create a custom marketing mix for the specific group. For example, Farmer Joseph realized early on that not everyone would purchase his expensive organic produce. He did not want to exhaust his financial budget by advertising to the masses. Instead, he identified his target market and created a specific marketing plan to communicate effectively with his prime customers.
His target market consisted of females age 18-65, with an income of $50,000+, who have healthy eating habits and who are concerned about pesticides. His plan consisted of ad placement in local women's magazines, newspapers and also email blasts to a list that he formulated with age and income specifics. Lastly, he advertised with a local gym about his healthy produce. Marketers have numerous choices in how they can segment a market.
If the farmer had planned on targeting everyone, then the type of segmentation would have been called no market segmentation. The opposite type of segmentation would be if he decided to target based on every individual factor available. This would be called a fully segmented market. Other choices include segmenting just by gender, income, lifestyle, ethnicity, family life cycle, age group, or even a combination-type.
Companies will not survive if the marketing strategy is dependent upon targeting an entire mass market. The importance of market segmentation is that it allows a business to precisely reach a consumer with specific needs and wants. In the long run, this benefits the company because they are able to use their corporate resources more effectively and make better strategic marketing decisions.
