Answer:
Total present value of the payments=$11,263.96
Explanation:
<em>Step 1: Determine the total future value of all the payments</em>
For the next 3 year;
Total future value=3,600×3=$10,800
For the fourth year;
Total future value=$5,100
At the end of 4 years, Mustard's Inc will have a future value of;
5,100+10,800=$15,900
<em>Step 2: Determine the present value of all the payments</em>
Using the formula;
F.V=P.V(1+r)^n
where;
F.V=future value
P.V=present value
r=interest rate
n=number of years
In our case;
F.V=$15,900
P.V=unknown
r=9%=9/100=0.09
n=4 years
replacing;
15,900=P.V(1+0.09)^4
15,900=1.4116 P.V
P.V=15,900/1.4116
P.V=11,263.96
Total present value of the payments=$11,263.96
Answer:
The crossover point is 50 units.
Explanation:
Giving the following information:
Process A:
Fixed costs of $1000
Variable costs of $5 per unit.
Process B:
Fixed costs of $500
Variable costs of $15 per unit.
<u>First, we need to structure the total cost formula:</u>
Process A= 1,000 + 5x
Process B= 500 + 15x
x= number of units
<u>Now, we equal both formulas and isolate x:</u>
1,000 + 5x = 500 + 15x
500 = 10x
50=x
The crossover point is 50 units.
Answer:
Estimated manufacturing overhead rate= $1.75 per direct labor dollar
Explanation:
Giving the following information:
The estimated that total factory overhead cost for the Blending Department for the coming fiscal year beginning February 1 would be $3,150,000, and total direct labor costs would be $1,800,000.
To calculate the estimated manufacturing overhead rate we need to use the following formula:
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Estimated manufacturing overhead rate= 3,150,000/1,800,000= $1.75 per direct labor dollar
Answer:
Do chores at home and your parents will be able to give you some money
1. Alice's treatment of the equipment as <u>useful</u> for five years, would increase <u>before-tax earnings</u> by <u>$24,000</u>, as opposed to expensing the equipment cost.
2. The ethical dilemma facing Alice in determining the treatment of the $30 million equipment purchase involves creating a <u>wrong impact</u> in financial reporting.
<h3>What are ethical dilemmas in accounting?</h3>
Some of the ethical dilemmas in financial accounting include:
- Conflict of interest
- Confidentiality
- Impacts of financial reporting.
Thus, Alice faces the ethical dilemma of making a <u>wrong impact in financial reporting</u> based on the treatment of the $30 million equipment purchase.
Learn more about handling ethical dilemmas in accounting at brainly.com/question/14864299
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