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3 years ago

A refrigerator is priced at $1,250. There are two options offered to reduce the price: either a 25% discount off the price

Business

1 answer:

Vlad1618 [11]3 years ago

3 0

Answer:

The 25% discount is better; it saves $12.50

Explanation:

A discount represents a straightforward reduction in price by the stated percentage. A rebate is a refund given after making payments.

For the 25% discount, the customer will make payments as follows.

25% discount deducted from the price of $1250

=$1250-( 25/100 x 1250)

=$1250- (0.25 x 1250)

=$1250 -312.50

=$937.50

For 300 rebate, the customer will pay $1250 and get a refund of $300. The net payment will be $1250 minus $300

=$1250-300

=$950

The 25% discount option is better because the customer pays less by $12.50( $950 - 937.50)

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1 . Perpetuities Perpetuities are also called annuities with an extended or unlimited life. Based on your understanding of perpe

Dmitrij [34]

Answer:

(A) A perpetuity is a stream of regularly timed, equal cash flows that continues forever

(B) The value of a perpetuity is equal to the sum of the present value of its expected future cash flows

the bank offers 1.6%

in the alternative scenario it offers 1.067%

Explanation:

(A) A perpetuity is a stream of regularly timed, equal cash flows that continues forever

The perpetuity is an annuity in which time tends to infinity, to be qualified as an annuity the cash payment must be regular.

(B) The value of a perpetuity is equal to the sum of the present value of its expected future cash flows

As state above the perpetuinty is an annuity, the annuities return the present value of the expcted future cash flow.

Given the annuity formula

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

if times tends to infinity then the expression:

$\lim_{n \to \infty} (1+r)^{-n} = 1$

Nexti n the annuity formula we got:

$C \times \frac{1-1 }{rate}= PV\\$

So we end up with C / rate = PV

which s the perpetuity formula

800/50000 = 0.016 = 1.6%

800/75000 = 0.0106667 = 1.067%

7 0

3 years ago

PB8.

Maurinko [17]

Answer:

Products Selling price Unit variable cost

$ $

Junior 50 15

Adult 75 25

Expert 110 60

Total 235 100

The sales price per composite unit = $235

The contribution margin per composite unit

= Composite selling price - Composite unit variable cost

= $235 - $100

= $135

Break-even point in units

= Fixed cost

Contribution per unit

= $114,750

$135

= 850 units

Break-even point in dollars

= Break-even point in units x Composite selling price

= 850 units x $235

= $199,750

Income Statement

Total contribution ($135 x 850 units) 114,750

Less: Fixed cost 114,750

Net profit 0

Explanation:

Sales price per composite unit is the aggregate of all the selling prices.

Contribution margin per composite unit equals composite selling price minus composite unit variable cost.

Break-even point in units is fixed cost divided per composite contribution margin per unit.

Break-even point in dollars equal break-even point in units multiplied by selling price.

Income statement is prepared by deducting the total fixed cost from the total contribution.

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3 years ago

Which payment option takes money out of your bank immediately?.

Oduvanchick [21]

Answer:

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3 years ago

Canoe Company's manufacturing accounting system uses direct labor costs to apply overhead to goods in process and finished goods

sasho [114]

Answer:

Estimated manufacturing overhead rate= $0.2 per direct labor dollar

Explanation:

Giving the following information:

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Factory overhead applied $6,000.

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Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

6,000= Estimated manufacturing overhead rate*30,000

6,000 / 30,000 = Estimated manufacturing overhead rate

Estimated manufacturing overhead rate= $0.2 per direct labor dollar

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What does the term rop stand for at u-haul?

pav-90 [236]

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4 years ago