To help maintain a balanced personal budget sounds like the answer. Hope it helps! :-)
Answer:
Effect on income= 50*50= $2,500 increase
Explanation:
Giving the following information:
Model 26 has sales of 150 units with a contribution margin of $50 each.
To calculate the effect on income, we need to use the following formula:
Effect on income= number of units*unitary contribution margin
Effect on income= 50*50= $2,500 increase
C. Marginal Cost
Marginal cost is the <em>additional </em>cost to produce each unit of a good.
Answer:
Present Value= $18,181.82
Explanation:
Giving the following information:
Savings= $2,000
The machine will then begin to wear out so that the savings decline at a rate of 4 % per year forever.
Interest rate= 7%
To determine the present value of the savings, we need to use the perpetual annuity formula with the decline rate.
PV= Cf/ (i + g)
Cf= cash flow
PV= 2,000/ (0.07 + 0.04)
PV= $18,181.82
Answer:
Direct material price variance= $20,100 unfavorable.
Explanation:
Giving the following information:
Direct materials 7 pounds at $0.60 per pound = $ 4.20
During the latest month, the company purchased and used 67,000 pounds of direct materials for $.90 per pound to produce 10,000 units of output.
Direct material price variance= (standard price - actual price)*actual quantity
Direct material price variance= (0.60 - 0.90)*67,000= $20,100 unfavorable.
