Answer and Explanation:
The computation is shown below:
(a) Standard direct materials price per pound of raw materials is
= Purchase price + freight in + receiving and handling
= $3 + $0.50 + $0.20
= $3.70
(b) Standard direct materials quantity per gallon is
= Required material + allowance for waste and spoilage
= 3.50 pounds + 0.80 pounds
= 4.30 pounds
(c) Total Standard direct materials cost per gallon is
= Standard direct materials price per pound of raw materials × Standard direct materials quantity per gallon
= $3.70 × 4.30 pounds
= $15.91
We simply applied the above formulas
Answer:
a. Linda's acceptance is effective and a contract is created.
Explanation:
A contract is created when there is an offer and acceptance of a transaction. When the contract is created it is enforceable and not revocable unless with the consent of parties involved.
Bob made an offer to Linda to buy her 1,000 of her widgets. The offer is open for 3 weeks and Linda accepted the offer within one week.
Although Bob tried to revoke the offer, since Linda has accepted it the contract is created and enforceable on Bob.
Answer:
$197,263.7
Explanation:
The current value can be found by use of the compound interest formula. Since the asset has been losing value at 6 % per year,
the interest rate will be -6%
The formula for compound interest is FV = PV × (1+r)^n
in this case
FV= current value
PV= $237,500
r= -6% or -0.06%
n= 3 years
Fv= $237, 500 x ( 1 + (-0.06)^3
Fv=$237,500 x (0.94)^3
Fv= $237,500 x 0.830584
Fv= $197,263.7
The current value =$197,263.7
Let’s look at the facts,
Original Investment: $80,000
Income: $150,000/ year
Salary: $105,000
New space: $22,000
Income: $150000
- Salary: $105000
- New Space: $22000
======================
Profit: $23000/ year
After 3 years they would have made, $69,000
Now had they left the original $80000 invested @ a rate of 15% annually (assuming its compounded), after 3 years they would have $121,670
So economically speaking, they didn’t make the right choice
Answer:
The present value is the value today of a sum of money to be received in the future and in general is less than the future value.
Explanation:
The formula to compute the present value is shown below:
Future value = Present value × (1 + interest rate)^number of years
or Present value = Future value ÷ (1 + interest rate)^number of years
Let us take an example
Present value = $2,750
Rate = 5.25% ÷ 2 = 2.625%
Number of years = 1 year × 2 = 2 years
So, the future value
= $2,750 × (1 + 2.625%)^2
= $2,750 × 1.0531890625
= $2,896.27
It is done on semi annual basis. As we can see that the present value is less than the future value