Answer:
28.85
Explanation
Keanu has decided to save a fixed amount of 70,000 for a given period. We would need to calculate the number of years to achieve 7,796,223 using the FVIFA formula (Future value interest for an annuity)
Fixed payment× FVIFA=Future value
<em>FVIFA</em> = ![\frac{(1+r)^{n} - 1}{r}](https://tex.z-dn.net/?f=%5Cfrac%7B%281%2Br%29%5E%7Bn%7D%20-%201%7D%7Br%7D)
where r is the periodic rate (9%)
and n is the number of periods
therefore; 70000×
=7796223
=(7796223×0.09)/70000
n=27.85
However, since Keanu will not invest until the end of the first year, he will spend 28.85 years to achieve his goal
Answer:
since the special order does not affect current normal sales, its analysis should only consider incremental expenses, not regular expenses:
A) Income statement without the special order
total revenue = $68 x 80,100 = $5,446,800
- COGS = ($2,446,880)
- Direct materials $897,120
- Direct labor $608,760
- Overhead $941,000
gross profit = $2,999,920
- SG&A = ($1,022,000)
- Selling exp. $559,000
- Administrative exp. $463,000
net income = $1,977,920
B) incremental revenue from special order = 14,900 x $63 = $938,700
incremental costs:
- direct materials = ($897,120 / 80,100 units) x 17,900 = $200,480
- direct labor = ($608,760 / 80,100 units) x 17,900 = $136,040
- overhead = ($658,700 / 80,100 units) x 17,900 = $147,200
- selling expenses = [($335,400 / 80,100 units) x 17,900] + ($2.70 x 17,900) = $74,952 + $48,330 = $123,282
- administrative expenses = $940
- total incremental costs = $607,942
incremental gain from special order = $938,700 - $607,942 = $330,758
Income statement with the special order
total revenue = $6,385,500
- COGS = ($2,930,600)
- Direct materials $1,097,600
- Direct labor $744,800
- Overhead $1,088,200
gross profit = $3,454,900
- SG&A = ($1,146,222)
- Selling exp. $682,282
- Administrative exp. $463,940
net income = $2,308,678
Answer:
the level of real GDP that exists when the economy is experiencing only frictional and cyclical unemployment.
Explanation:
Potential GDP output is the highest level of real GDP that an economy can achieve over a sustained period of time and at a constant inflation rate. Potential output is reached when the natural rate of unemployment exists.
Natural rate of unemployment = frictional + structural unemployment
An economy can temporarily reach an output level higher than potential, but it will cause a surge in the inflation rate that will soon lower real GDP.
Answer:
Bodily Injury Liability
Explanation:
Since the accident that left Francis seriously injured was Evan's fault, the automobile Insurance policy that will cover the cost of Francis's treatment would be Bodily Injury Insurance Policy.
When a user of this Insurance policy cause a car accident that injures another person, bodily injury liability coverage helps pay for the medical expenses of the person or persons injured.
One should carry a bodily-injury coverage of at least $100,000 per person, and $300,000 per accident, and property-damage coverage of $50,000, or a minimum of $300,000 on a single-limit policy.
This goes to define Bodily injury liability as a car insurance coverage that pays for injuries a driver causes to other people, including other drivers, passengers and pedestrians. This policy covers or takes care of medical expenses and lost wages as well as legal and funeral expenses in some cases of the injured persons.
Answer:
Ronald basketball star and Rawlings engaged in investment spending.
Rupert money buckets and Russia engaged in investing in financial assets
Rhonda moviestar invested in physical assets.
Explanation:
Each investments by these entities have been grouped under 1, 2 and 3.
1. Investment Spending
- Ronald Basketballstar spends $10 million to build a new mansion with a view of the Pacific Ocean
- Rawlings builds a new plant to make catcher’s mitts
2. Investing in Financial Assets
- Rupert Moneybuckets buys 100 shares of existing Coca-Cola stock
- Russia buys $100 million in U.S. government bonds
3. Investing in Physical Assets
- Rhonda Moviestar spends $10 million to buy a mansion built in the 1970s.