Answer:
$1,768,680
Explanation:
Given that:
- Number of units: 280
- Price per unit: $729
- The monthly interest rate: 0.5 % = 0.005
- Number of additional units: 40
- The variable cost per unit: $480
The net present value of the proposed credit policy switch as the following formula:
NPV = -[Number of units*price/unit) + (Number of additional units*Variable cost/unit) + (price/unit - Variable cost/unit)*Number of additional units] / Rate
NPV = - [($729*280) + ($480*40)] + [($729 - $480) 40]/0.005 = $1,768,680
Hope it will find you well.
Answer:
The correct answer is D
Explanation:
Computation of allocation of factory overhead cost for the Job NO 117:
Now, computing the rate of overhead allocation as:
Pre- determined rate of overhead allocation = Estimated aggregate overhead / estimated number of labor hours
where
Estimated aggregate overhead is $95,000
Estimated number of labor hours is 9,500 hours
Putting the values above:
= $95,000 / 9,500 hours
= $10 per hour.
Computing the overhead cost to be allocated to Job No 117 as:
Overhead cost to be allocated to Job No 117 = Number of direct labor hours × pre- determined rate of overhead
where
Number of direct labor hours is 2,300 hours
Pre- determined rate of overhead allocation is 10 per hour
Putting the values above:
= 2,300 hours × $10 per hour
= $23,000
Answer:
income = 500,000
Explanation:
Income = sales - expenses
In this case, we are given with the three cost component, we add them together to get the total cost, or total expenses for the period.
Then we calculate the difference with the revenue and obtain the net income.
sales 10 millions
direct materials 3.5 millions
direct labor 2.5 millions
overhead <u> 3.5 millions </u>
total cost 9.5 millions
net income 0.5 millions = 500,000
Answer:
$778.82
Explanation:
Given:
Amount to be accumulated in retirement fund which is future value (FV) = $500,000
Interest rate (Rate) = 5.5% annually or 5.5 / 12 = 0.4583%
Time period (nper) = 25 years or 25×12 = 300 periods
Monthly deposit need to be computed (PMT). which can be calculated using spreadsheet function =pmt(rate,nper,PV,FV)
=pmt(0.004583,300,0,500000)
Monthly payment is computed as $778.82
Note: PMT is negative as it is a cash outflow.