Answer:
Earns $13650 more;
To double: 14.49years at simple interest or 10.39years at compound rate.43.48years at simple interest or 20.78years at compound rate
To quadruple:
Explanation:
Using simple interest calculation:
I=PRT/100
I=Interest
P=Principal
R=Interest Rate
T=Time
Therefore I=65000*0.08*8
I=41600
Using compound interest calculation;
A=P(1+R)^T
A=Amount
A=65000(1+0.08)^8
A=65000*1.85
A=120250
I=120250-65000
I=55250
The compound interest rate earns more by (55250-41600) =$13,650
To double the interest using simple interest calculation;
65000=65000*0.069*T
T=65000/4485
T=14.49years
To double the interest using compound rate calculation:
130000=65000(1+0.069)^T
(1+0.069)^T=130000/65000
1.069^T=2
T=In(2)/In(0.069)
T=10.39years
To quadruple your money using simple rate calculation:
195000=65000*0.069*T
T=195000/4485
T=43.48Years
To quadruple your money using compound rate calculation;
260000=65000(1+0.069)^T
1.069^T=4
T=In(4)/In(1.069)
T=20.78years
Answer:
$770 favorable
Explanation:
The spending variance for a flexible budget will be calculate as follow:
actual activity x standard rate - actual cost
1,300 x 3.90 = 5,070 standard cost
actual cost 4,300
Variance: 770 favorable
This variance is favorable, as the actual cost were lower than expected, the company saved cash in the supplies espending.
Answer:
A) total cost = (200 labor hours x $20) + (500 units of raw materials x $8) + $4,000 cost of capital = $12,000
average total cost per unit = $12,000 / 2,000 units = $6 per unit
B) new total cost = (100 labor hours x $20) + (500 units of raw materials x $8) + $4,000 cost of capital = $2,000 + $4,000 + $4,000 = $10,000
average total cost per unit = $10,000 / 3,000 units = $3.33 per unit
C) When process innovation occurs, total productivity and efficiency increase, decreasing the average cost per unit. In this case the total cos decrease, but even if total costs do not decrease, higher efficiency and productivity can be achieved by production more units at the same total costs. Process innovations, usually related to new technologies, are responsible for the greatest increases in productivity and efficiency which result in higher economic output and growth.
Answer:
$200,000
Explanation:
The computation of the net revenue is shown below:
= Cash sales gross - Returns and allowances + credit sales gross - discounts + beginning balance of account receivable - ending balance of account receivable
= $80,000 - $4,000 + $120,000 - $6,000 + $40,000 - $30,000
= $200,000
We simply first compute the net cash sales after considering the returns and allowances, and net credit sales after considering the discounts, and deduct the ending balance of account receivable
