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timofeeve [1]
3 years ago
15

American Gas Products manufactures a device called a Can-Emitor that empties the contents of old aerosol cans in 2 to 3 seconds.

This eliminates having to dispose of the cans as hazardous wastes. If a certain paint company can save $75,000 per year in waste disposal costs, how much could the company afford to spend now on the Can-Emitor if it wants to recover its investment in 3 years at an interest rate of 20% per year?
Business
1 answer:
kakasveta [241]3 years ago
5 0

Answer:

$157,986.11

Explanation:

Given that

Amount = $75,000

Number of years = 3

Interest rate = 20%

The computation of the present value is shown below:-

Here we will use the P/A factor which is here

Present value = Amount × (1 + Interest rate)^number of years - 1 ÷ (Interest rate × (1 + Interest rate)^Number of years

= $75,000 × ((1 + 20%)^3 - 1) ÷ (0.20 × (1 + 0.20)^3)

= $75,000 × (0.728  ÷ 0.3456)

= $75,000 × 2.106481481

= $157,986.1111

or

= $157,986.11

Therefore for computing the present value we simply applied the above formula.

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Lusk Corporation produces and sells 14,300 units of Product X each month. The selling price of Product X is $25 per unit, and va
zloy xaker [14]

Answer:

Annual financial disadvantage = $ (669,600)

Explanation:

Relevant cost are future incremental cash costs that arise as a direct consequence of a decision.

The relevant costs of this decision to disconnected includes the following:

  1. The variable cost of making the product = $19 per unit
  2. Sales revenue at a price of $25
  3. Savings in  avoidable fixed costs (102,000-72,000) = 30,000

Annual financial advantage                                

                                                                       $

Lost contribution $(25-19)× 4,300 units =   (85,800)

Saving in fixed cost =                                   <u>  30,000</u>

M<em>onthly net loss                                            </em><em><u> 55,800</u></em>

Annual financial disadvantage

Monthly net loss × 12 months

=  (55,800)  × 12

=  $ (669,600)

8 0
3 years ago
If the demand and supply curves for product X are stable, a goverment mandated increase in the price of X will:_______
shepuryov [24]

Answer: C. . increase the quantity supplied of X and decrease the quantity demanded of X.

Explanation:

If the demand and supply curves for product X are stable, a goverment mandated increase in the price of X will result into the increase the quantity supplied of X and decrease the quantity demanded of X.

This is because when there is a rise in price, the suppliers will be willing to supply more while the consumers will demand less of the product.

4 0
3 years ago
Price elasticity of demand measures Select one: A. how responsive sales are to changes in the price of a related good. B. how re
Setler79 [48]

Answer:

B

Explanation:

Elasticity of demand is the degree of responsiveness of the quantity demanded of a commodity to change in the price of the commodity.

It is of 3 types

1. Price elasticity of demand

2. Income elasticity of demand

3. Cross elasticity of demand

6 0
3 years ago
Read 2 more answers
Youngston Company (a Massachusetts employer) wants to give a holiday bonus check of $750 to each employee. Since it wants the ch
stepan [7]

Answer:

Gross bonus=$1,148.54

FIT=252.68

OASDI=71.21

HI =16.65

MASS. TAX=58.00

Explanation:

Calculation for the withholding taxes and the gross amount of the bonus

Calculation for gross amount of the bonus

Gross amount of the bonus= [$750/ (1- 0.22 - 0.062 - 0.0145 - 0.0505] - 0.01

Gross amount of the bonus= [$750/ (0.78 - 0.062 - 0.0145 - 0.0505] - 0.01

Gross amount of the bonus= [$750/ 0.653] - 0.01

Gross amount of the bonus=1,148.545-0.01

Gross amount of the bonus=$ 1,148.54

Therefore the Gross amount of the bonus will be $ 1,148.54

Calculation for the withholding taxes

FIT =1148.54 * 22%

FIT=252.68

OASDI= 1148.54 * 6.2%

OASDI=71.21

HI=1148.54 * 1.45%

HI =16.65

MASS. TAX =1148.54 * 5.05%

MASS. TAX =58.00

NET 750.00

[$1,148.54-(252.68+71.21+16.65+58.00)]

Therefore the withholding taxes are:

FIT=252.68

OASDI=71.21

HI =16.65

MASS. TAX = =58.00

7 0
3 years ago
China, India, Eastern Europe, and other developing countries have been sourcing hot spots. Explain why and also discuss any prob
Oksana_A [137]

Answer: The problem in outsourcing from low-cost country:

It is seeking goods and services beyond the border of a region. It is a process where organizations look for the most cost-effective place globally to manufacture their goods. Most organizations choose a global sourcing strategy as the cost is using lower abroad.

Explanation:

Outsourcing from low-cost countries a move by the company to cut costs as they have a huge presence of labor. It will allow them to concentrate on their core activities. But, there are some problems outsourcing from low-cost countries. Some are :

1. Sometimes the outsourcing does not provide the expected cost savings.

There might be new conflict and problem arising from different sources

2. There might be legal barriers present between the two different nations involved in outsourcing.

7 0
3 years ago
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