Answer:
$320,244.92
Explanation:
We must first determine the principal of the loan and we can do that by using the present value of an annuity formula:
PV = monthly payment x annuity factor
- monthly payment = $2,356
- PV annuity factor, 360 periods, 0.625% = 143.01763
PV = $2,356 x 143.01763 = $336,950
Once we have calculated the principal, we can prepare an amortization schedule. I used an excel spreadsheet to do it. Four years and 8 months is the same as 56 monthly payments. The principal's balance after the 56th payment is $320,244.92
Answer:
755 units
Explanation:
Given that,
variable cost per clock = $10.20
Selling price = $17
Fixed cost = $7,701
At old price,
Contribution margin:
= Selling price - Variable cost
= $17 - $10.20
= $6.8
Break even point:
= Fixed cost ÷ Contribution margin per unit
= $7,701 ÷ $6.8
= 1,132.5
Now, Suppose that Juniper raises its price by 20 percent, but costs do not change.
Selling price = $17 + ($17 × 20%)
= $17 + $3.4
= $20.4
Contribution margin:
= Selling price - Variable cost
= $20.4 - $10.20
= $10.2
New Break even point:
= Fixed cost ÷ Contribution margin per unit
= $7,701 ÷ $10.2
= 755 units
