Answer:
See below.
Explanation:
We can compute the profitability of this special order by accounting for the incremental costs,
Sales (9700 * 47.20) = $457,840
Incremental Variable costs = (18 + 7.30 + 4.50 + 6.90) = $36.7/unit
The incremental variable costs include the $6.9 for modifications and does not include 7.4 which is a part of non incremental fixed costs.
Profits from this special order are as follows,
Sales 457,840
Less:
Variable costs (36.7*9700) 355,990
Incremental Fixed costs 46,700
Profits from this special order 55,150
Since the order has positive contribution and as it yields profits, it should be accepted.
Hope that helps.
In team assignments, make sure you speak first and act on your own.
Answer:
The present value of the cashflows will be $12830.30
Explanation:
The present value of the cashflows can be calculated by dividing the cash flows by the appropriate discount rate and for the appropriate time period.
The present value of the given cash flows will be,
Present Value = CF1 / (1+r) + CF2 / (1+r)^2 + .... + CFn / (1+r)^n
As the first payment is received today, it will already be in the present value so it will not be discounted.
Present value = 2000 + 3000 / (1+0.1) + 5000 / (1+0.1)^3 + 7000 / (1+0.1)^5
Present value = $12830.295 rounded off to $12830.30
Answer:
It suggests that the advertisement financially supports the website ( C )
Explanation:
Affiliation is the official attachment of businesses with common interest wherein one party controls or is in-charge of the business relationship between the parties. in some cases a third party might be in control as well.
The information found on an advertisement that is affiliated with a website content shows that the advert and the website are in business together hence the advert supports the website financially, because the details contained in the advert might be drawn from the contents of the websites.
