Answer:
The lump sum be of $237,228.84
Explanation:
In order to calculate how large must the lump sum be we would have to use and calculate the formula of Present value of annuity due as follows:
Present value of annuity due=(1+interest rate)*Annuity[1-(1+interest rate)^-time period]/rate
Present value of annuity due=(1+0.075)*$25,000[1-(1.075)^-15]/0.075
Present value of annuity due=$25,000*9.489153726
Present value of annuity due=$237,228.84(Approx)
The lump sum be of $237,228.84
Answer:
The break even in dollars is $214000
Explanation:
The break even point in dollars is the amount of revenue earned that is equal to total cost and there is no profit or no loss. The break even is used to calculate the minimum revenue that should be earned by the firm to cover its total costs. The break even in dollars is calculated by dividing the fixed costs by the contribution margin ratio.
Break even in dollars = Fixed costs / Contribution margin ratio
Where, contribution margin ratio = (Selling price per unit - Variable cost per unit) / Selling price per unit
Contribution margin ratio = (220 - 74.8) / 220 = 0.66 or 66%
Break even in dollars = 141240 / 0.66 = $214000 per month
Answer:
B) $900
Explanation:
Given: Purchased 300 units of inventory in January at $5 each.
Purchased 500 units of inventory in August at $4 each.
Purchased 200 units of inventory in November at $6 each.
The company sold 150 units during the year.
As given company used periodic inventory system and the LIFO inventory costing method.
Periodic inventory system are the system that determine inventory at the end of each accounting period.
Last-in-first-out (LIFO) is inventory valuation method that assume inventory which are placed last, will be the first one to be sold out.
Now, computing cost of goods sold as per LIFO method.
We know sold unit is 150 unit
∴ Last inventory which was placed is in November, that is at $6 per unit.
Cost of goods sold= 
⇒ Cost of goods sold= 
∴ Cost of goods sold= 
Hence, the cost of goods sold as per LIFO inventory costing method is $900.
