Answer:
company gained a gross profit of $2 million
Explanation:
Data provided in the question;
Contract price to build an office = $32 million
Construction costs incurred during the first year = $9 million
Estimated costs to complete at the end of the year = $21 million
Therefore,
Total cost incurred to complete the construction of the office at the end of the first year
= Construction costs incurred during the first year + Estimated costs to complete at the end of the year
= $9 million + $21 million
= $30 million
Thus,
The revenue generated by the company = Contract price - cost incurred
= $32 million - $30 million
= $2 million
since the revenue is positive, hence the company gained a gross profit of $2 million
Answer: $329.75
Explanation:
The one year subscription is $40 per year. It is estimated that the average age of current subscribers is 38 and they will leave on average to 78. This means that they will leave for,
= 78 - 38
= 40 years
Evans Ltd average interest rate on long-term debt is 12% so this means that we can use that 12% as a discount rate for the cash-flow expected.
I have attached a Present Value Interest Factor of an Annuity table to this question. It helps calculate annuities faster.
The above can be treated as an annuity because the $40 is constant every year.
The present value of the $40 over 40 years can be calculated by,
= $40 * present value Interest Factor of an Annuity for 40 years at 12% (look at the table for where 40 years on the y axis intersects with 12% on the x axis)
= $40 * 8.2438 (this is the figure when it is not rounded off to 3 dp)
= $329.752
= $329.75
This shows that the lifetime flat fee of $480 is more profitable for Evans Ltd as opposed to the yearly subscription. They should therefore try to sell more of the lifetime contract with the flat fee.
<span>b. debit interest receivable for $500 and credit interest revenue for $500
</span>
Based on historical perspective, the age range of the early game designers is between <u>40 to 60years old.</u><u> </u>Also, the gender for which the games were being designed is <u>male</u>.
<h3>History of Game Designs.</h3>
The history of game designs can be traced to William Higinbotham, a Physicist who created the first video game in 1958 at the age of 48 years.
William Higinbotham created the first video game during the Brookhaven annual visitors day to lighten the exhibition show.
The video game he created was tennis, known as "Tennis for Two," and the men in attendance played it.
Hence, in this case, it is concluded that the game designers were <u>men</u>, and they are in the age range of <u>40 to 60 years</u>.
Learn more about the video game industry here: brainly.com/question/14468591
Answer: Option (A) is correct.
Explanation:
If the government wishes to increase the level of real GDP, it might reduce <u>Taxes.</u>
This is due to the fact that if government reduces the transfer payment, size of budget deficit or its purchases of goods and services then as a result the level of real GDP deceases because of lower aggregate demand for the product.
Now, if government reduces the taxes, this will increase the individual's disposable income. So, this will results in higher aggregate demand and hence, increases the level of real GDP.
