Answer:
How are fixed costs different from variable costs?Fixed costs do not change no matter how much a business produces; variable costs do change.
Explanation:
when a company decides to produce a certain commodity fixed cost and variable costs are the main costs of the company. Fixed costs are constant regardless of the amount of output a company produces . e.g insurance and rental payment while Variable cost changes or varies or with the amount of goods and services produced by a company.e.g money paid for labour.
The correct option is Option A - using credit to pay for purchases.
Answer:
The answer is 80%
Explanation:
Profit = revenue - cost of sales
=[(50* 300) per 50 front-foot lot * 3 lots ] - 25000 *100
=(45000-25000)/25000 *100
<u>=80%</u>
The net present value of the proposed project is closest to -$80,822.
Since the project saves $80,000 in costs each year, we treat these savings income for the next 4 years. We then calculate the Present value Interest Factor of an annuity using the formula :
PVIF of an annuity = { [ 1 - [ (1+r)⁻ⁿ ] } ÷ r
PVIF of an annuity = { [ 1 - [ (1.09)⁻⁴ ] } ÷ 0.09
PVIF of an annuity = 3.240 (rounded to three decimals)
PV of the cost savings = (3.240*80000) = $2,59,178 (rounded to nearest $)
NPV = PV of cost savings - Value of investment
NPV = 2,59,178
- 3,40,000
