Answer:
The future value in 5 years is $3,184.87
Explanation:
The figure is arrived by calculating the future of the yearly total service of $600($3*200) by using applicable annuity factor for each of the years from year 1 to 5.
The annuity factor for each year is calculated as (1+r)^n, where r is the rate of return of 2% and the n the year in which the service fee relates to.
Kindly find attached for detailed computations.
Answer:
e. Deterring monopoly
Explanation:
Based on the information provided within the question it can be said that the best choice would be that it is deterring monopoly. Monopolies refer to having full control of an industry and being the the only supplier or producer of a certain good. This is always bad because monopoly's are able to set whatever price they want on their products because there is no competition to steal away customers.
Answer:
A. Expensed when incurred.
Explanation:
An incurred expense is basically the cost that are unpaid for. Paid expenses are incurred expenses once you paid for it (Eg credit card).
Answer:
556.6 or 557 units
Explanation:
Given that,
Digby's sales forecast for Dixie = 506 units
Digby wants to have an extra units on hand above and beyond their forecast = 10%
Production units = Sales × (1 + Reserve Percentage)
= 506 × (1 + 10%)
= 506 × 110%
= 556.6 or 557 units
Therefore, the Dixie's will produce 557 units in order to have a 10% reserve of units available for sale.