Consumer decision making is a process that has 5 steps. The first step is the consumer recognition of the need they need to satisfy. It is termed as the basic step since one cannot look for money to satisfy a need that they have not first recognized.
Answer:
The maximum investment is $6,360.111
Explanation:
Giving the following information:
The placement of a new surface would reduce the annual maintenance cost to $500 per year for the first 3 years and to $1000 per year for the next 7 years. After 10 years the annual maintenance would again be $2500.
We need to find the net present value. The maximum initial investment will be the amount that makes the NPV cero.
NPV=∑[Cf/(1+i)^n]
Cf= cash flow
<u>For example:</u>
Year 1= 500/1.05= 476.19
Year 3= 500/1.05^3= 431.92
Year 5= 1,000/1.05^5= 783.53
NPV= 6,360.111
The maximum investment is $6,360.111
Answer:
$5,000 favorable
Explanation:
The computation of the total variable overhead variance is given below:
= Budgeted machine hours allowed for actual output × Budgeted variable overhead rate per machine hour - Actual total variable overhead
= 32,000 hours × $2.50 - $75,000
= $80,000 - $75,000
= $5,000 favorable
Since the favorable is more than the actual so it should be favorable
Answer:
The inventory TO is 3.6875
Explanation:
![\frac{Sales}{Average Inventory} = $Inventory Turnover](https://tex.z-dn.net/?f=%5Cfrac%7BSales%7D%7BAverage%20Inventory%7D%20%3D%20%24Inventory%20Turnover)
where:
![$$Average Inventory=(Beginning Inventory + Ending Inventory)/2](https://tex.z-dn.net/?f=%24%24Average%20Inventory%3D%28Beginning%20Inventory%20%2B%20Ending%20Inventory%29%2F2)
Considering there is not sufficient information to calculate the begining inventory <u>we are going to work only with the ending inventory </u>so:
![\frac{59,000,000}{16,000,000} = 3.6875](https://tex.z-dn.net/?f=%5Cfrac%7B59%2C000%2C000%7D%7B16%2C000%2C000%7D%20%3D%203.6875)
The inventory TO is 3.6875 This means the company sales their inventory almost 4 times per year.