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diamong [38]
3 years ago
14

A firm is reviewing a project with labor cost of $9.00 per unit, raw materials cost of $25.25 a unit, and fixed costs of $13,000

a month. sales are projected at 11,000 units over the 3-month life of the project. what are the total variable costs of the project? $194,875 $389,750 $363,750 $277,750 $376,750
Business
1 answer:
MaRussiya [10]3 years ago
6 0

Answer:

$376,750

Explanation:

Firstly, eliminate unneeded information. This question asks for the costs of variable costs, or fees that can possibly change. Becuase of this, we can ignore the $13,000 a month fee, because this is not a variable cost, meaning that it is not going to change.

Secondly, multiply your variable costs to match the units needed. We have $9,000 a unit and $25,000. The estimate is 11,000 units, so set your equation up like so- (9,000 X 11,000) + (25,000 X 11,000) = $376,750.

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A commercial bank will loan you $20,000 for four years to buy a car. The loan must be repaid in 48 equal monthly payments. The a
Lisa [10]

Answer:

Monthly payment = $469.701

Explanation:

<em>Loan Amortization: A loan repayment method structured such that a series of equal periodic installments will be paid for certain number of periods to offset both the loan principal amount and the accrued interest.  </em>

The monthly equal installment is calculated as follows:  

Monthly equal installment= Loan amount/Monthly annuity factor  

Loan amount = 20,000

Monthly annuity factor  =

=( 1-(1+r)^(-n))/r  

r- Monthly interest rate (r)  

= 6/12= 0.5%  

n- Number of months ( n) = 20 × 4 = 48

Annuity factor  

= ( 1- (1.005)^(-48)/0.005= 42.5803

Monthly installment= 20,000 /42.5803  = $469.701

Monthly installment = $469.701

Monthly payment = $469.701

8 0
3 years ago
On December 31, the balance in the office supplies account is $1,300. A physical count shows $510 worth of supplies on hand. Req
madam [21]

Answer:

Date                    Account title                                               Debit          Credit

December 1        Office Supplies Expense                           $790

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Explanation:

Office supplies is an asset but when it is used it should be debited to the office supplies expense account because it becomes an expense that should be catered for in the Income statement.

The office expense that is used for the year is:

= Book balance - Physical inventory

= 1,300 - 510

= $790

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