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3 years ago

What two things do you consider when evaluating the time value of money? (13 points)

1 answer:

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The time value of money is the idea that an amount of money in the present is more valuable and is worth more than the amount of money in the future. Two things you'd need to consider when making this type of deal is putting yourself at risk of not getting the money and putting your trust into the person who owns you the money. You would need to consider that putting yourself in that position is your decision, no one elses. Ask yourself, "Can I trust this person?" or, "What if I don't get as much money as they promised?"

I hope this helps!

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Suppose that a company expects the following financial results from a project during its first year operation:

stiks02 [169]

Answer:

a. Contribution margin in percentage is 66.67%

b. Break even point in units is 2500 units

Explanation:

Contribution margin is the value that each product is contributing towards covering the fixed costs of the business. The contribution margin is calculated by deducting Variable cost from the total revenue. The contribution margin ratio is the contribution margin expressed as a percentage of revenue.

Contribution margin percentage = (Contribution margin / Sales) * 100

Contribution margin = Revenue - Variable costs

So Contribution margin ratio = [ (300000 - 100000) / 300000] * 100 = 66.67%

The break even point in units the quantity of units needed to be sold in order for the firm to break even. Break even is the point where Total revenue equals total costs.

Break even in units = Fixed cost / Contribution margin per unit

Contribution margin per unit = Selling price per unit - Variable cost per unit

Contribution margin per unit = (300000 / 10000) - (100000 / 10000) = 20

Break even point in units = 50000 / 20 = 2500 units

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3 years ago

What-if analysis works forward from known or assumed conditions?

marysya [2.9K]

<span>This is, in fact, true. What-if analysis is done by altering values in cells to see what outcomes are produced due to the changes. All data is kept on a worksheet to analyze. There are three types of What-if Analysis tools available in Excel, Data tables, Goal Seek, and Scenarios.</span>

5 0

3 years ago

On January 1, 2021, Tonge Industries had outstanding 480,000 common shares ($1 par) that originally sold for $30 per share, and

ira [324]

Answer:

842,000 shares

Explanation:

Please the solution to the given problem in the file attached below

5 0

3 years ago

Read 2 more answers

Assume that Amazon sells the MacBook Pro, a computer produced by Apple, for a retail price of $1,500. Amazon arranges its operat

tatuchka [14]

Answer: $150

Explanation:

Based on the information given in the question, the journal entry provided will be:

Debit Customer $1500

Credit Account Payable (Apple) $1350

Credit Commission income/Revenue $150

Therefore, the revenue that Amazon will recognize for the sale of one MacBook Pro is $150.

7 0

3 years ago

Brad is a sales representative for a Kettle Chips and is preparing for a Super Bowl promotional campaign. He's contacting each o

alexdok [17]

Answer:

point-of-purchase advertising.

Explanation:

In this scenario, Brad is contacting each of his grocery and convenience accounts with an opportunity to install an end-of-aisle display with graphics of the Super Bowl teams and a display of several varieties of chips.

Hence, this is known as point-of-purchase advertising, a type of trade-oriented promotion.

A point of purchase advertising can be defined as a marketing strategy used by retailers, which typically involves the placement of end user goods e.g graphics of the Super Bowl teams strategically placed in a supermarket aisle for retail customers.

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3 years ago