Answer:
First option will be recommended.
Explanation:
To determine which option to be taken, we calculate the net present value each option generates. The option generating higher NPV should be recommended.
- Net present value of first option = Lump sum receipt = $150,000.
- Net present value of second option will be found by discounting cash flows at investing rate 12% and calculated as followed:
+ Present value of 20 equal annual payment of $14,000 + Present value of $60,000 paid in 20 years = (14,000/12%) x [ 1 - 1.12^(-20)] + 60,000/1.12^20 = $110,792.
As net present value of the first option is higher than the second option, first option will be recommended.
Answer:
A. 2
B. May 1, 2021
Dr Cash $94,600
Cr Deferred revenue $89,870
Cr Deferred revenue-coupons $4,730
C. May 1, 2021
Dr Cash $94,600
Cr Deferred Revenue $94,600
Explanation:
A. Based on the information given the numbers of PERFORMANCE OBLIGATIONS that are in this contract is 2 which are:
KEYBOARD and CUSTOMER OPTION FOR FUTURE DISCOUNT
B. Preparation of the journal entry that Meta would record on May 1, 2021.
May 1, 2021
Dr Cash $94,600
Cr Deferred revenue $89,870
($94,600-$4,730)
Cr Deferred revenue-coupons $4,730
(5%*$94,600)
C. Preparation of the journal entry that Meta would record on May 1, 2021
May 1, 2021
Dr Cash $94,600
Cr Deferred Revenue $94,600
Answer:
B. $6000
Explanation:
Given that
Price = $9
Average total cost (ATC) = $7
Output (Q) = 3000
Two methods can be used in calculating profit in this case.
The first method is
Profit = (price - ATC) × Q
= (9 - 7) × 3000
= 2 × 3000
= $ 6000
The second method is
Profit = Total revenue (TR) - Total Cost (TC)
Where TR = Price × Q = 9 × 3000 = $27000
TC = ATC × Q = 7 × 3000 = $ 21000
Therefore,
Profit = 27000 - 21000
= $6000
Any method used will result to the same answer.
NOTE THAT,
ATC = Total cost / Q.
So change of formula was used to obtain Total cost from this formula.
Answer:
International.
Explanation:
International strategy is the process of increasing involvement of enterprises in international markets. More specifically, internationalisation comprises the planning and implementation of specific products and services that can easily be adapted to foreign markets and cultures.
Why is it important to look abroad?
• Desire to grow
• Increase in performance and recognition
• Unsolicited foreign orders
• Domestic market saturation or limitations The crisis presents challenges at home, but also opportunities abroad
• Potential to exploit a new technological advantage
• Different geographies have different needs and complement each other in presenting a wide range of gaps and opportunities to build market presences.
The theory that quantity supplied and price are positively related, other things constant is referred to as the law of supply. The law of supply states that when there is an increase in the prices of goods and services there is also an increase in the supply of such goods and services.
