$160000 x 1.06 = $169600
$169600 - 160000 = $ 9600 per year
$9600 / 12 = $ 800 per month
160000 / 360 month = $ 444.44 per month
800 + 444.44 = $ 1244.44 monthly peyment
The best choice would be Choose Make-to-Order Process.
Option b
<u>Explanation:</u>
Make to order (MTO) also known as made to order, is a type of business production strategy which allows the customers to buy the products that are designed or customised based on their own specifications.
In simpler words, this process involves the production of customised goods after the consent of the consumers.
Here it has been mentioned that the demand is 10,000 units per month and the capacity of the company production is 15,000 units. So, it can be inferred that the company would have enough time to produce the goods based on the desirability of the customers. (customised products).
Therefore, the best choice would be Choose make-to-order process.
Answer:
Explanation:
Goodwill is defined as the excess in amount of the purchase price of a company over the fair value at acquisition.It is intangible in nature , meaning it can not be physically separated from the other assets. Example are patent , brand name , good employee relation.
1.
Goodwill calculation
Purchase price - $2,500,000
Fair value - $1,800,000
Goodwill - $700,000
2.
No
Under the IAS 36, impairment of assets , goodwill is not amortized but annually tested for impairment as amortization is applicable to intangible assets with a definite useful life while intangible assets with indefinite useful life are annually tested for impairment to evaluate a loss in value experienced.
3
No
Under IAS 38 , Internally generated goodwill are not recognized as no related cost is incurred towards achieving a future benefit
