Answer:
$3,208
Explanation:
The computation of the future value is shown below;
As we know that
Future valie = Present value × (1 + rate of interest)^number of years
where
Present value is $2,500
Rate of interest = 2.5% ÷ 4 = 0.625%
And, the time period is = 10 × 4 = 40
So, the future value is
= $2,500 × (1 + 0.625%)^40
= $3,208
Answer:
Demand drops to zero
Explanation:
Infinite elasticity of demand is also called perfect elasticity of demand.
In this scenario the demand for a product is attached to it's price.
There is an infinite change in the quantity demanded as a result of change in price.
Graphically it is a horizontal demand curve as represented in the attached
Even a small increase in price will cause demand to fall to zero.
Examples are luxury goods such as high end cars and expensive jewelry.
<u>Solution and Explanation:</u>
Breakeven point = Fixed cost divide by Contribution margin
Contribution margin = Sales minus Variable cost.
Fixed cost
Particular Amount
Salaries $5000
Utilities $1100
Depreciation $1200
Maintenance $780
Total Fixed cost = $8,080.
Variable cost =Maid services plus Other cost = $7 plus $13 = $20
Contribution = $40 minus $20 = $20.
Breakeven point in number = $8080 divide 20 = 404 rented rooms per month.
Breakeven point in $ = Breakeven point rented rooms × rent cost.
=> 404 rooms multiply $40 = $16,160.
Answer:
$60,000
Explanation:
Sales Price $125,000
Less BV $140, 000
Loss on Sale $15,000
Equipment transferred at BV (Cost $140,000
Less Accumulated Depreciation. $40,000 $100,000 Depreciation.
For 2012
($100,000/5) $40,000 = $60,000
Therefore the Book Value at 12/31/2012 is $60,000
