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3 years ago

Perfect Clean, Inc. provides housekeeping services. The following financial data have been provided.

Business

1 answer:

ioda3 years ago

7 0

Answer:

A) $38,650; 48.31%

Explanation:

The computation of the contribution margin and the contribution margin ratio is shown below:

Contribution margin = Service Revenue - Cleaning Supplies Used - wages expense

= $80,000 - $22,000 - $19,350

= $38,650

The variable cost is Cleaning Supplies Used + wages expense

And, the contribution margin ratio equals to

= (Contribution margin ÷ sales) × 100

= ($38,650 ÷ $80,000) × 100

= 48.31%

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Southern California Publishing Company is trying to decide whether to revise its popular textbook, Financial Psychoanalysis Made

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Answer:

Present value of the cash inflow= $69,086.97

Explanation:

<em>An annuity is a series of annual cash outflows or inflows which payable or receivable for a certain number of periods. If the annual cash flow is expected to increase by a certain percentage yearly, it is called a growing annuity. </em>

To work out the the present value of a growing annuity, we use the formula:

PV = A/(r-g) × (1- (1+g/1+r)^n)

A- annual cash flow - 20,000

r- rate of return - 8%

g- growth rate - 3%

n- number of years- 4

I will break out the formula into two parts to make the workings very clear to follow. So applying this formula, we can work out the present value of the growing annuity (winnings) as follows.

A/(r-g) = 20,000/(0.08-0.03) = $400,000

(1- (1+g/1+r)^n) = 1 -(1.03/1.08)^4 =0.17271

PV = A/(r-g) × (1- (1+g/1+r)^n) =400,000 × 0.17271 =69,086.97

Present value of the cash inflow = $69,086.97

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Match each of the following scenarios with the accounting principle or accounting assumption that it best illustrates.a. Several

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Answer:

Key S - Scenario

A - Accounting Principle or Assumption

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Historical cost principle

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Business entity assumption

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Time period assumption

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Monetary unit assumption

Explanation:

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2 years ago

Under the gold standard the fixed price of gold was $20.67 per ounce in the United States. The fixed price of gold was £4.2474 p

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The answer of the question is b

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