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Firlakuza [10]
3 years ago
9

Sanders Enterprises arranged a revolving credit agreement of $9,000,000 with a group of banks. The firm paid an annual commitmen

t fee of 0.5% of the unused balance of the loan commitment. On the used portion of the revolver, it paid 1.5% above prime for the funds actually borrowed on a simple interest basis. The prime rate was 3.25% during the year. If the firm borrowed $6,000,000 immediately after the agreement was signed and repaid the loan at the end of one year, what was the total dollar annual cost of the revolver?
Business
1 answer:
Usimov [2.4K]3 years ago
5 0

Answer:

Total dollar Annual Cost = $300,000

Explanation:

  • Total loan Commitment = 9000000
  • Borrowed Fund (Used Portion) = 6000000
  • Unused Portion (9000000 - 6000000) = 3000000
  • Annual Commitment Fee for unused Portion = 0.50%
  • Commitment Fee = 3000000 x 0.05% = 15000
  • Borrowed Fund (Used Portion) = 6000000
  • Interest Rate (3.25% + 1.5%) = 4.75%
  • Interest Cost (6000000 x 4.75%) = 285000

Total dollar Annual Cost (15000 + 285000) = $300,000

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Derby Inc. manufactures a product which contains a small part. The company has always purchased this motor from a supplier for $
skad [1K]

Answer:

Income will be higher by $16 per unit

Explanation:

As per the data given in the question,

Direct material = $38

Direct labor = $50

Overhead = $21

Total variable cost = $38 + $50 + $21

= $109

Cost of supply = $125

Income increased per unit = cost of supply - total variable cost  

=$125 - $109

= $16

Because the cost of inhouse is lower therefore net income will be more by $16 per unit

8 0
3 years ago
Which of the following is an example of groupthink? A. Everyone on the team agrees with whatever you have to say with very limit
Mekhanik [1.2K]

Groupthink is <u>a psychological phenomenon that occurs in groups, where people have a tendency to conform to whatever the group has to say, and thus lead to irrational behaviors and decisions. </u>

Thus, the best answer for the question would be (A) everyone on the team agrees with whatever you have to say with very limited discussion.

6 0
3 years ago
Read 2 more answers
Last year Almazan Software reported $10.500 million of sales, $6.250 million of operating costs other than depreciation, and $1.
castortr0y [4]

Answer:  -($0.5025) million

Explanation:

As depreciation is expected to increase this year by $0.670 million.

Therefore,

Expenses will increase and will result in decrease in income before tax by $0.670 million.

Additional tax saving on increase in depreciation = $0.67 × 25%

                                                                                   = $0.1675 million

Hence,

Total change in net income = -($0.67) + $0.1675

                                              = -($0.5025) million

8 0
3 years ago
Business behavior is derived in large part from the basic cultural environment in which the business operates and, as such, is s
solong [7]

Answer:

TRUE

Explanation:

The influence of cultural on business behavior is broadly encompassing. Cultural impacts ranges from understanding employee behavior and employees management methodologies; i.e. how best to manage employees based on their values and priorities. It also impacts the functional areas of marketing and distribution: what people appreciate and the peculiarities of their environment. It also greatly impact and is a strong determinant factor of success when a company is taking a decision on how best to enter a new market.

When business ignore cultural factors they are guilty of ethnocentrism and could be orchestrating business failure.

7 0
3 years ago
Which of the following individuals are required to pay taxes to fund Social Security and Medicare?
Xelga [282]

Answer:

Correct option is (D)

Explanation:

Employees, employers and self employed are supposed to contribute to fund social security and medicare.

Contribution made by each party comes under different categories. Employees contribute to social security and medicare in the the form of FICA taxes which could be withheld by the employers. Employees pay 50 percent and the remaining 50 percent is paid by the employer.

Self employed contribute in the form of self employed taxes.

4 0
3 years ago
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