Answer and Explanation:
The computation is shown below:
a. The expected value of payout arise from emergency is
= 0.01 × $67,500
= $675
b. The expected value of payout arise from capped coverage insuance is
= (0.9 × $500) + (0.09 × $2,500)
= $675
c. The risk averse shows the minimum exposure with respect to the swings of the income or there would be the loss in the income. Since the payout amount is same in both the cases so here we considered option B
Answer:
Results are below.
Explanation:
Giving the following information:
Company 1:
Beginning inventory Merchandise $253,000
Cost of purchases 600,000
Ending inventory Merchandise 153,000
Company 2:
Beginning Finished goods $506,000
Cost of goods manufactured 930,000
Ending Finished goods 147,000
<u>To calculate the cost of goods sold, we need to use the following formula:</u>
<u></u>
COGS= beginning finished inventory + cost of goods manufactured/purchased - ending finished inventory
<u>Company 1:</u>
COGS= 253,000 + 600,000 - 153,000
COGS= $700,000
<u>Company 2:</u>
COGS= 506,000 + 930,000 - 147,000
COGS= $1,289,000
Answer:
False
Explanation:
Both supply and demand concepts rest on the relationship between price and quantity.
Quantity demanded increase when price falls and falls when price increases.
Quantity supplied increases when price increases and falls when price falls.
The demand and supply curve are plotted with price on the y axis and quantity on the x axis.
I hope my answer helps you
Answer:
$4,800
Explanation:
The computation of additional annual cash inflow is shown below:-
Saving in Annual Maintenance Cost by new machine = $15,000 - $6,000
= $9,000
Net savings on Maintenance = $9,000 × (1 - 0.4)
= $5,400
Decrease in Depreciation due to purchase of New machinery
= ($60,000 ÷ 10) - ($45,000 - 10)
= $6,000 - $4,500
= $1500
Tax to be paid due to decrease in Depreciation = Decrease in Depreciation due to purchase of New machinery × Tax rate
= $1,500 × 0.4
= $600
Net Annual cash Inflow due to new machinery = Net savings on Maintenance - Tax to be paid due to decrease in Depreciation
= $5,400 - $600
= $4,800
So, for computing the additional annual cash inflow we simply applied the above formula.
The inability of sole proprietors to provide fringe benefits to their employees can affect the service rendered to customers. Without fringe benefits, the employer will not be able to attract quality applicants for his business. He may have to settle for less qualified staff who may not be able to provide clients with excellent service.
