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Pie
3 years ago
11

A service contract for a video projection system costs $90 a year. You expect to use the system for three years. Instead of buyi

ng the service contract, what would be the future value of these annual amounts after three years if you earn 5 percent on your savings
Business
1 answer:
xenn [34]3 years ago
3 0

Answer:

$245.09

Explanation:

A service contract for a video projection system costs $90 a year. You expect to use the system for three years.

Instead of buying the service contract, the future value of these annual amounts after three years if you earn 5 percent on your savings will be:

PV  

Ordinary Annuity

​  =C×[  ((1−(1+i)  ^−n ) / i ]

where

n = number of years = 3

i = interest rate = 5%

Present Value of the annuity = 90 x [ ((1 - (1+0.05)^-3) / 0.05] = $245.09

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Cane Company manufactures two products called Alpha and Beta that sell for $135 and $95, respectively. Each product uses only on
Vika [28.1K]

Answer:

CANE COMPANY

a. total amount of traceable fixed manufacturing overhead

Alpha  =  $19*105,000   = $1,995,000

Beta  = $21*105,000   =   $2,205,000

b.  Company's total amount of common fixed expenses =

Aplha  = $18*105,000 =     $1,890,000

Beta   = $13* 105,000 =     $1,365,000

Total                           =    $3,255,000

c.  Increase in profit as result of accepting the offer = additional contribution * additional unit sold

                        = $14*13,000

                            = $182,000

additional contribution =$92 - (30 + 23 + 10 + 15)

d.  Decrease in profit = loss of contribution * unit sold

                                     = -13 *4000

                                     = ($52,000)

   loss of contribution  =  42 -( 18+ 16 +8+13)

Explanation:

3 0
3 years ago
Think about how and why goods and resources are scarce. Goods and resources can be scarce for reasons that are inherent to their
Lera25 [3.4K]

Answer:

A. Holiday lights in mid-December: Scarce on occasion: Holiday lights are only scarce on holiday season when the demand increases.

B. Air regardless of quality: Not scarce : Only high quality air (clean) is scare.

C. Land: Inherently scarce: No matter what we do, our planet is only one.

D. Patented goods: Artificially scarce: Patents are scarce because a law protects them.

E. Original Picasso paintings: Inherently scarce: Picasso is dead, so he cannot paint anymore.

8 0
3 years ago
Sheridan Company uses the periodic inventory system. For the current month, the beginning inventory consisted of 485 units that
Kipish [7]

Answer:

Value of closing inventory = $25771.04

Explanation:

To calculate the value of ending inventory under a periodic average cost method, we will calculate the average price per unit of inventory at the end of the month. To calculate the average price per unit, we simply divide the total cost of the inventory by the total number of units for the month.

Average cost per unit = Total cost of all units for the month / Total units available for the month

<u />

<u>Total cost of all units:</u>

Beginning inventory (485 * 66)            32010

Purchase 1     (725 * 69)                        50025

Purchase 2     (364 * 71)                    <u>    25844</u>

Total                                                       107879

<u>Total Units</u>

Beginning Inventory     485

Purchase 1                     725

Purchase 2                    <u>364</u>

Total                              1574

Average cost per unit =   107879 / 1574

Average cost per unit = $68.54

Units of closing inventory = 1574 - 1198     =   376 units

Value of closing inventory =  376 * 68.54

Value of closing inventory = $25771.04

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Answer:

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Explanation:

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