Answer:
$15
Explanation:
The computation of the average fixed cost is shown below:
As we know that
Average fixed cost is
= Total fixed cost ÷ Quantity
where,
Total fixed cost is
= Total cost - total variable cost
= $1,200 - $200 × 3
= $1,200 - $600
= $600
And the quantity is 40 products
So, the average fixed cost is
= $600 ÷ 40
= $15
Answer:
This business idea worth $430,127 today
Explanation:
Today value of the future cash flows can be calculated by discounting the cash flows on the given discount rate. It is called the present value and sum of present value of all cash flows is called Net present value.
We use following format to calculate NPV for the given business idea
Years 1 2 3
Cash Flows $5,600 $48,200 $125,000
Sale Proceeds $450,000
Net Cash Flows $5,600 $48,200 $575,000
Discount Factor 14% 0.8772 0.7695 0.6750
Present values $4,912.32 $37,089.9 $388,125
Net present value of business idea = $4,912.32 + $37,089.9 + $388,125
NPV = 430,127.22
Answer:
Gross premium = $100
Monthly Net premium = $70
Therefore 70 x 12 x 3 = 2,520
= 20% of 2, 520
2,520/100 x 20/1
GMP (Gross Monthly Premium) = $540
Answer:
Reason : To ensure constant flow of cash
Explanation:
<u>Accrual Basis of accounting</u> records transactions when they meet definition and recognition criteria of Assets, Liabilities,Equity, Expense and Incomes.
This is different from<u> cash-basis accounting</u> which records transactions at the receipt or payment of cash.
Because of <em>timing</em> difference, the cash transactions (cash basis) can happen a late than the day of recognition of the elements (accrual basis).
Hence Revenue services demand that income tax be calculated on accrual basis to ensure a constant flow of cash whenever an entity transact.
Given Information:
Current Population = P₀ = 7 billion = 7x10⁹
Growth rate = r = 3 %
Period = t = 100 years
Required Information:
(a) Population after 100 years = ?
(b) Population after t = 0, 1, 2, 10, 25, 50 years = ?
(c) Population vs time graph = ?
Explanation:
The human population growth can be modeled as an exponential growth,

where P₀ is the current population, r is the growth rate and t is the time period
(a) What would the population equal 100 years from now?

P = 140.6x10⁹
(b) Compute the level of the population for t = 0, t = 1, t = 2, t = 10, 25, and t =50
<u>t = 0</u>
P = 7x10⁹e⁰
P = 7x10⁹
<u>t = 1</u>
P = 7x10⁹e^0.03*1
P = 7.213x10⁹
<u>t = 2</u>
P = 7x10⁹e^0.03*2
P = 7.423x10⁹
<u>t = 10</u>
P = 7x10⁹e^0.03*10
P = 9.45x10⁹
<u>t = 25</u>
P = 7x10⁹e^0.03*25
P = 14.82x10⁹
<u>t = 50</u>
P = 7x10⁹e^0.03*50
P = 31.37x10⁹
(c) Make a population versus time graph
Attached as image