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3 years ago

a. What is the total cash outflow for buying and for leasing a motor vehicle with a cash price of $33,000

Business

1 answer:

kumpel [21]3 years ago

8 0

Answer:

For buying = $32,640

For leasing = $31,800

Explanation:

The computation is shown below:

For buying

Total cash outflow = Down payment + Loan repayment - Value of vehicle at the end of loan

= $5,600 + (780 × 48) - $10,400

= $32,640

For Leasing

Total cash outflow = Down payment + Loan repayment - Value of vehicle at the end of loan

= $2,000 + (600 × 48) - $1,000

= $31,800

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Amount Number of units sold 11,000 Selling price per unit $ 16 Variable selling expense per unit $ 1 Variable administrative exp

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Contribution income statement : Net operating income $25,000

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