Answer:
a. $36,310.55
b. Yes
Explanation:
a. The computation of the net present value is shown below:-
Year Net Cash Flow PV at 12% PV of Net Cash Flows
1 $63,000 0.893 $56,259
2 $46,000 0.797 $36,662
3 $83,000 0.712 $59,096
4 $159,000 0.636 $101,124
5 $41,000 0.567 $23,247
Total $276,310.55 (B)
Invested Amount $240,000 (A)
Net Present Value $36,310.55 (B - A)
b. Since the net present value comes in positive so Beyer should accept this investment
Answer:
E) Trading company
Explanation:
In international trade, trading companies are basically wholesalers that work at an international level. They usually purchase products from different businesses and then resell them to local retail businesses or sometimes final consumers (less common). Trading companies generally enter a exclusive distribution agreement with the manufacturer per region or country that they operate in.
Answer: ($24100)
Explanation:
The annual financial advantage (disadvantage) for the company goes thus:
The relevant cost to produce will be:
= ($4.10 × 19,000) + ($8.70 × 19,000) + ($9.20 × 19,000) + ($4.60 × 19,000) + $31,000
= $77900 + $165300 + $174800 + $87400 + $31000
= $536,400
The relevant costs to buy will be:
= 19,000 × $29.5
= $560,500
Since the relevant cost to buy is more than the relevant cost to produce, then the financial disadvantage will be:
= $560500 - $536,400
= $24,100
The answer is ($24,100)
Answer:
d) $1.50
Explanation:
To calculate what the consumers pay the Randy's mart we do the following,
Purchase price = $1, this is what the Randy's mart pays to buy the bottle they add 50% markup to retail.
The total price the consumer then pays = 1 * 1.5 = $1.5
This is the total marked up price that the consumers pays Randy's per bottle of Lemon Fizz.
Hope that helps.
Answer:
January 2, 2020, 100 contracts are sold:
Dr Cash 48,500
Cr Sales revenue - tablets 23,164
Cr Unearned service revenue 25,336
Dr Cost of goods sold 16,500
Cr Merchandise inventory 16,500
December 31, 2020,
Dr Unearned service revenue 8,445
Cr Service revenue 8,445
Explanation:
the price for the bundle = $485
- tablet = $256 ⇒ [$256 / ($256 + $280)] x $485 = $231.64
- service = $280 ⇒ $485 - $231.64 = $253.36
You first need to prorate the price of the tablet and the cost of the internet service. Since the service is prepaid, you cannot recognize revenue, instead a liability account is created (unearned service revenue). As time passes, the unearned revenue will turn into accrued service revenue.
