Cost of goods sold=
beginning inventory+purchase-ending inventory
cost of goods sold
=6,500+21,500−8,500
=19,500
Answer:
$180,000
Explanation:
Residual Income is the difference between net income of the company and the required rate of return. It determines the excess of income generate than the minimum return. The residual income serve a company to track its performance. It is a financial metric to assess company's internal performance. The formula to calculate the residual income is,
RI = Net operating Income - (Required rate of return * Cost of operating assets)
RI = $420,000 - (15% * $1,600,000 )
RI = $180,000
Answer:
Margin of safety = 2,000 units
Explanation:
Margin of Safety =Total units sold-Break-even point
where Total units sold = 
=14,000 units
Break even point = 
The contribution per unit can be deduced from the contribution margin ratio as follows:
Contribution margin ratio=
=40%
this implies that Contribution Margin=40%*Sales
Given a selling price of $16/unit, contribution per unit = 0.4*$16=$6.40
therefore :
Break even point = 
=12,000 Units
Margin of Safety =Total units sold-Breakeven point= 14,000 units -12,000 units = 2,000 units
When the value of technology utility and network externality benefits exceeds monopoly Costs.
Answer:
FV= $94,108.42
Explanation:
<u>First, we need to calculate the future value of the 12 annual deposits:</u>
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
FV= {3,500*[(1.06^12) - 1]} / 0.06
FV= $59,044.79
<u>Now, the future value at the end of the 20 years (8 years more):</u>
FV= PV*(1 + i)^n
FV= 59,044.79*(1.06^8)
FV= $94,108.42
