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devlian [24]
3 years ago
9

Swifty Company reports the following operating results for the month of August: sales $315,000 (units 5,000); variable costs $21

8,000; and fixed costs $70,000. Management is considering the following independent courses of action to increase net income. Compute the net income to be earned under each alternative. 1. Increase selling price by 10% with no change in total variable costs or sales volume.
Business
1 answer:
Sloan [31]3 years ago
4 0

Answer:

Net income to be earned =   $58,500

Explanation:

The net income to be earned can determined as follows:

<em>Net income = (sales value - Variable costs) - Fixed costs</em>

With an increase in selling price by 10%, the total sales value would now be

Total sales value = 110% × 315,000 =$346,500

Net income therefore would be

                    = (346,500 - 218,000) - 70,000

                  =   $58,500

Not that the fixed cost will not change because it is independent of volume and also the variable cost has been  stated to remain the same.

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Jan sold her house on December 31 and took a $10,000 mortgage as part of the payment. The 10-year mortgage has a 10% nominal int
bixtya [17]

Answer:

a) quota: $ 802.43

b) 500 and then, 484.88 for interest

   302.43 and 317.54

C) total interest: 984.88

D) the interest will decrease and the amortization over time will increase

E) as the loan has a given date. At that date the principal outstanding must be zero therefore, after each payment the principal is reduced making interest decrease as well. This decrease in interest is replaced with an increase in the amortization-

Explanation:

PV \div \frac{1-(1+r)^{-time} }{rate} = C\\

PV 10,000

time 20

rate 0.05

10000 \div \frac{1-(1+0.05)^{-20} }{0.05} = C\\

C  $ 802.426

Interest on first quota:

10,000 x 0.05 = 500

Amortization on first quota:

802.43 - 500 = 302.43

Interest in second quota:

(10,000 - 302.43) x 0.05 = 484,8785‬

amortization on second quota:

802.42 - 484,88 = 317,54‬

Interest for the year:

500 + 484.88 = 984.88

6 0
3 years ago
BlackHawk anticipates paying a dividend of $4.25 next year and is expected to grow the dividend at a constant rate of 7% per yea
siniylev [52]

Answer:

$70.83

Explanation:

The Gordon Growth model (or the dividend discount model) provides a simple formula for calculating the intrinsic price of stocks:

price of stocks = dividend / (required rate of return - growth rate)

price of stocks = $4.25 / (13% - 7%) = $4.25 / 6% = $70.83

4 0
3 years ago
Yes! Assuming Economia's aggregate supply curve is upward sloping, when the aggregate demand curve shifts rightward, this will:
katovenus [111]

When the aggregate demand curve shifts rightward, this will increase Economia's real output and the price level.

<h3>What happens when the aggregate demand shifts rightward?</h3>

The aggregate demand curve is a curve that shows the total quantity of all goods and services demanded by the economy at different price levels. The aggregate demand curve slopes downward.

When  aggregate demand curve shifts to the right, there would be an increase in the real output and the price levels.

To learn more about the demand curve, please check: brainly.com/question/25140811

7 0
1 year ago
Marshall Company purchases a machine for $840,000. The machine has an estimated residual value of $40,000. The company expects t
natka813 [3]

If the units-of-production method is used, the depreciation expense for this period is: <u>$136,000</u>

<u>Explanation</u>:

<em><u>Given</u></em>:

Cost of machine= $840,000

Estimated residual value= $40,000

No of units produced during current period= 680,000 units

Expected production by the machine= 4 million units

Unit of production method= cost of asset-salvage value/useful life in the form of units produced

Depreciation per unit= (cost - residual value)/estimated life in units

                                     = (840,000-40,000)/4,000,000

Depreciation per unit= 0.2 per unit

To calculate depreciation for period,

Depreciation for period= depreciation per unit*actual units produced in this period

                                         = .2*680,000

Depreciation for period= $136,000

3 0
2 years ago
In a minimum 200 words explain the idea behind the balance of power. How did this concept play itself out in Europe? How was thi
Ket [755]

Answer:

Hi

It meant a political situation among the states in which none of them achieved a power superior to the others. It is an idea of the late Middle Ages, applied to major or minor geographic regions that comprise the plurality of sovereign territories. Throughout Europe there is a legitimate feeling, always subject to interpretation, whereby any action required the confirmation of the rest of the States, the most significant case being the invasion of a territory. In this way the doctrine of just war was reached, to the problem of to what extent and to what extent the actual or imminent engraving of a State could mean a warlike justification. Transactions between contestants, neutral or rival, never ended, hence the relevance of diplomacy, as the concepts of balance, neutrality, freedom of Europe or sovereignty are interpreted continuously, while being used in conversations. Some thought of equilibrium as a natural system, because it was a consequence of international relations, and when a great power had too much force it threatened the others, and therefore, had to counteract the disproportion. Others considered it a desired goal for which he had fought.

In the rest of the world this balance of powers is characterized by the profusion of dictatorial or authoritarian regimes that have dominated the political scene and that have influenced the future of their peoples. A second point is the emergence of serious and bloody war conflicts, by territorial issues, which is not explained very well both in its unleashing and in its results, as consequences of the mere quantification of the powers faced. In all these, both in its gestation and its consequences, the role it plays in the character, personal ambitions and strategic conceptions of the leaders or rulers who govern the destinies of the countries involved appears with particular relevance.

Explanation:

7 0
3 years ago
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