<u>Solution and Explanation:</u>
- the total sales of calendars is as follows:
7200 multiply with $5 each = $36000
- In order to find out the profit, the toal of sales is to be subtarcted with costs. The given sales is $36000, costs is $19183
Thus, the total profit = $16817
95% of 10080 canot be taken in order to find out the correct number. 5% enrollment growth, is as follows:
10080 = 1.05 multiply "x"
thus, calculating x = 9600
- The number of studnets are 9600 in the last semester out of which 7200 bought calendar. 7200 divide 9600 = 75.0 percent sales penetration.
Answer: a). Firm's growth rate = 10.5%
b). Next year's earnings = $30,940,000.00
Explanation: Earnings growth rate is the percentage change in earnings given specific variables.
The firm's earnings growth rate g = Return on equity (ROE) × Retained earnings (b) = 0.15(0.70)
g =0.105 or 10.5%
In finding next year's earnings, we multiply the current earnings times one plus the growth rate.
Next year's earnings = Current earnings(1 + g)
Next year's earnings = 28,000,000(1 + 0.105)
Next year's earnings = $30,940,000.00
Answer:
Explanation:
The detailed steps and calculation is as shown in the attached files.
Answer:
The two optimal two part price that would be suggested to Verizon is Unit per Fee = $1 and Lump Sum fee or fixed fee = $99
Explanation:
Solution
For us fully maximize profit under two part price It should gives that amount of wireless service at which P = MC and and also charge Lump sum fee or fixed fee equals to the consumers surplus that consumer will have.
Now,
marginal cost= MC = 1 and P = 100 - 25Q.
Thus,
P = MC => 100 - 25Q = 1 => Q = 2
Then,
The Consumer surplus is the above area Price of line which is (iP = 1) and below is the curve of demand
Now,
P = 100, When Q = 0 The Consumer surplus = (1/2)*base*height
= (1/2)*(100 - 1)*2 = 99
Therefore, Fixed fee or The Lump Sum fee = 99
However, the Optimal two part pricing is denoted by:
The Unit per Fee = $1 and Lump Sum fee or fixed fee = $99
Answer:
The journal entry to record the direct material used in production is given below:
Dr Work-In Process Inventory $40000
Cr Raw Materials Inventory $40000
Explanation:
The work in process inventory is debited since it is the receiving account ,while raw material inventory is credited as it is the giving account.
The work in process depicts raw materials currently being worked upon at the production, from which completed goods are then transferred to finished goods inventory.
The raw materials inventory account is the account where raw materials received from vendors are first of all recorded before the need to issue to production process.
When such materials are received in the warehouse , the raw materials inventory account is debited while the supplier account is appropriately credited to show the amount of indebtedness.
