To answer the question, I assume that the given interest is annual and simple interest. The interest acquired by the investment in simple interest is given by the equation,
I = P x i x n
where I is interest, P is present worth, i is rate and n is number of interest period. Assuming that a year is 360 days,
I = ($700) x (0.105) x (90/360)
The answer is 18.375. Therefore, the interest due is approximately equal to $18.38.
Answer:
Since the capital account and owner's equity accounts are expected to have credit balances, the drawing account (having a debit balance) is considered to be a contra account. In addition, the drawing account is a temporary account since its balance is closed to the capital account at the end of each accounting year.
Explanation:
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Answer:
the minimum price it should charge is $40 per unit.
Explanation:
Minimum Transfer Price = Variable Costs - Internal Savings + Opportunity Cost
<em>Note : Division A has capacity available to meet B's requirements therefore there is no opportunity cost</em>.
There are Internal savings of $5 as A's variable costs will be $5 less per unit.
Minimum Transfer Price = $45 - $5
= $40
Answer:
Total fixed cost $16,000
unit fixed cost for 10,000 units $1.60
Explanation:
the budget was made for 8,000 units
so the 2.00 dollars for fixed cost will be based on a production for 8,000 units
total fixed cost: 8,000 budgeted units x $2 per unit = 16,000
This is the level of fixed cost.
<u>For 10,000 units the total fixed cost should be the same.</u>
and for units it will be total cost / units of production
16,000 / 10,000 = 1.6
On unit-level it will drop by 40 cent to $1.60 from $2.00