Answer:
Variable cost per unit= $1.92 per car wash
Explanation:
Giving the following information:
$5,400, occurred in July when 2,700 cars were washed and the lowest bill, $3,100, occurred in February when 1,500 cars were washed.
To determine the variable cost, we need to use the high-low method:
Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)
Variable cost per unit= (5,400 - 3,100) / (2,700 - 1,500)= $1.92 per car wash
Answer:
b. SaaS
Explanation:
The full form of SaaS is software as a service. It is a software which is to be paid by per user rather than buying the outright of the software. It is a subscription based where the user must have to pay the subscription fees on a monthly or yearly basis. When the subscription tenure is expired the user must have to pay the charges again to take the service
Therefore the option b is correct
The cost to produce today = 74000
At a discount of 12%, the future value of costs in 5 years = PV*(1+r)^n where PV = 74000, r= 12% = 0.12 and n = 5 years = 5
The value of costs in 5 years = 74000*(1+0.12)^5
The value of costs in 5 years = 74000*1.12^5
The value of costs in 5 years 130,413.28
Price in 5 years = 138,000
Profit = 138,000-130,413.28 = 7,586.72
The profit the firm will make on this asset (considering time value of money) = $7,586.72
General Motor Company(GMC) is a manufacturing company that manufactures automobiles in U.S.A.
