Answer:
Debit balance is transaction amount minus margin: (250 × $36.55) − 0.46 × (250 × $36.55) = $4934.25
Equity is the margin amount, or 0.46 × (250 × $36.55) = $4203.25
Margin = (Value − Debit balance)/Value = [(250 × $46) − $4934.25] ÷ (250 × $46) = 57.09%.
Answer:
The opportunity cost for a year will be $240,000.
Explanation:
The opportunity cost of any decision is the second-best alternative that is given up or sacrificed.
Here, the manager has a farm of 100 acres of land.
If he sells it to a developer for $40,000 per acre, he will get $4,000,000 for the whole land.
He can invest this amount and get an interest of 6% per year.
The opportunity cost of keeping the farm to the manager himself will be
= 6% of $4,000,000
= 
= $240,000
Answer:
$18,000
Explanation:
The computation of overall effect on the company's monthly net operating income is shown below:-
Current Proposed
Sales $800,000 $837,000
(200 × 4000) (200 - 14) × (4,000 + 500)
Variable expenses $160,000 $180,000
(40 × 4000) (40 × (4,000 + 500))
Contribution margin $640,000 $657,000
Fixed expenses $531000 $566,000
($531,000 + $35,000)
Net operating
income $109,000 $91,000
Decrease in net operating income = Current - Proposed
= $109,000 - $91,000
= $18,000
So, for computing the overall effect on the company's monthly net operating income we simply applied the above formula.
Answer:
mixed cost
Explanation:
Southern Food Service pays their employees on both a fixed and variable manner:
- managers are paid on a monthly fixed way ($4,200 per month) ⇒ fixed cost
- the rest of the employees are paid on an hourly basis, which obviously varies depending on the amount of hours each person works ⇒ variable cost
