Answer:
Maximum amount to be paid = $ 11,978.13
Explanation:
<em>This is an example of an annuity . </em><em>An annuity </em><em>is a series of periodic equal cash inflows or cash outflows occurring for certain number of years.</em>
<em>The maximum amount to be paid would be the present value (PV) of the cash flows discounted at the required rate of return of 8%</em>
This would be be done using the formulae below:
PV = A × 1 - (1+r )^(-n)/r
A- 3000 r - 8%, n - 5
PV = 3000× 1 -(1.08^(-5))/0.08
= 3000 × 3.9927
= $ 11,978.13
Maximum amount to be paid = $ 11,978.13
Since the question says you have $1,000 to spend or save you have to put what are the risks, advantages and disadvantages you might have with a,b,c and d
Answer:
$60
Explanation:
For computing the target cost, first we have to determine the profit per unit which is shown below:
= Selling price × return on sales percentage
= $80 × 25%
= $20
Now the target cost would be
= Selling price per unit - profit per unit
= $80 - $20
= $60
All other information which is given is not relevant. Hence, ignored it
Answer:
$190,000
; $228,000
Explanation:
Accounting Cost:
= Salary of Jill + Labor costs + Insurance and mortgage payment
= $60,000 + $90,000 + $40,000
= $190,000
Economic Cost:
= Accounting Cost + Investment return lost + Loss in Salary + Loss in Rent
= $190,000 + $8,000 + ($80,000 - $60,000) + ($50,000 - $40,000)
= $228,000
Therefore, accounting and economic costs are $190,000 and $228,000, respectively.
Answer: $283,140
Explanation:
Total Cost = Materials cost + Conversion cost
Conversion cost per unit = (Direct labor + Factory overhead ) / Equivalent units of production
= (142,300 + 57,200)/ ( 18,000 + (2,000 * 30%))
= 199,500/ 18,600
= $10.73 per unit
Direct material cost is $5 per unit from the question.
Total cost of the 18,000 units;
= (18,000 * 5) + (18,000 * 10.73)
= $283,140
