Live Forever Life Insurance Co. is selling a perpetuity contract that pays $1,500 monthly. The contract currently sells for $115
1 answer:
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Answer:
Explanation:
We mulitply each line by the stated percent of each activity
<u>for example</u>
Setting Up % x Utilities= Utilities cost assigned to setting up
199,000x 75% = 149,250
Assembly % Depreciation= Depreciation cost assigned to assembly
35% x 290,000 = 101,500
This process must be done to assign each portion of cost.
The question is incomplete. The complete question is :
A manufacturer believes that the cost function : approximates the dollar cost of producing x units of a product. The manu- facturer believes it cannot make a profit when the marginal cost goes beyond $210. What is the most units the manufacturer can produce and still make a profit? What is the total cost at this level of production?
Solution :
Given the cost function is :
Now, Marginal cost =
So, if the marginal cost = $ 210, then the manufacturer also makes a profit and if it goes beyond $ 210 than the manufacturer cannot make a profit.
Therefore, we have to equate :
So when x = 45, then C(x) = $ 8042.5
Therefore, the manufacturer to 45 units and
This leads to a total cost of $ 8042.5
Answer:
Days of receivable will be 75 days
Explanation:
We have given net credit sales = $1200000
Net account receivable at the beginning = $290000
And receivable at the ending = $201000
Average receivable
Now receivables turnover ratio
Days of receivables =