Answer:
The correct option is B.
Explanation:
The marginal benefit is the maximum amount which a person or individual is willing to pay in order to have an additional service or benefit. It is the additional satisfaction, which the person receives when an additional service or good is purchased.
So, in this case, Cassie need or require some special fabric which cost her $200 that is the additional amount she need to pay in order to complete the task. But alternatively, she could sell the quilt for $900. Therefore, she had a marginal benefit of $900, if sells the quilt as is now.
Answer:
$607,250 outflow
Explanation:
Net Working Capital is the amount of money needed to maintain operations on a day to day basis.
Net Working Capital = Current Assets - Current Liabilities
where,
<u>Current Assets are calculated as :</u>
Inventory $216,000
Accounts Receivable ($525,000 x 1.09) $575,250
Total $788,250
and
Current Liabilities = $181,000
therefore,
Net Working Capital = $788,250 - $181,000 = $607,250
Conclusion
The project's initial cash flow for net working capital is $607,250 outflow.
Answer:
It will take 1 year and 307 days to cover the initial investment.
Explanation:
Giving the following information:
Initial investment= $6,900
Cash flows:
Cf1= $4,200
Cf2= $5,100
Cf3= $6,300
Cf4= $5,500
Discount rate= 15%
<u>The payback period is the time required to cover the initial investment. We need to discount each cash flow.</u>
<u></u>
Year 1= 4,200/1.15 - 6,900= -3,247.83
Year 2= 5,100/1.15^2 - 3,247.83= 608.50
<u>To be more accurate:</u>
(3,247.83 / 3,856.33)*365= 307 days
It will take 1 year and 307 days to cover the initial investment.
Answer:
The planned purchases are given as $34,500 while the value of OTB is $28,900
Explanation:
The Planned purchases is given as
Planned Sales + Planned Markdowns + Planned End of Month Inventory - Planned Beginning of Month Inventory = Planned Purchases
So here the planned sales are 25000
The planned Reductions are 1500
The End of Month inventory is 88000
The Beginning of Month Inventory is 80000 So the value is given as
25000+1500+88000-80000= Planned Purchases
Planned Purchases =34500
The OTB is given as
OTB=Planned Purchases-Commitment
OTB=34500-5600
OTB=28900
Answer: 871 units
Explanation: Ending inventory is the amount of inventory a company hazs at the end of a specific period, generally at the end of the year.
.
The number of units in ending inventory can be calculated using following formula :-
Ending inventory = Inventory in hand + inventory ready for sale + invnetory sent on consignment - damaged units
Ending inventory = 700 + 100 + 100 - 29
= 871 units
