Answer:
Incremental Analysis for special order
units <u>10,000</u>
offer price $290,000
Variable cost:
Cost of goods sold($22.5 *10,000) 225,000
Selling and Administrative expenses
($2.05*10,000) 20,500
shipping cost (0.77*10,000) <u> 7,700 </u> <u> (253,200)</u>
Additional contribution <u> 36,800</u>
Explanation:
variable cost goods sold per unit = ( 3,633,000 - 960,000)/118800 = $22.5
Variable selling and admin expense per unit = ( 517,540 - 274,000)/118800
= $ 2.05
Answer:
A budget is a financial plan used to estimate future income and expenses. The budgeting process may be carried out by individuals or by organizations. Budgets help an entity determine whether it can continue to operate with its projected income and expenses.
Explanation:
thank me later
Answer:
Could you add more details please
Explanation:
Answer:
Check the explanation
Explanation:
a1.Present value of $8500=$8500
the Present value of $3000 a year for 5 years=$3000*Present value of annuity factor(9%,5)
the Present value of annuity=Annuity[1-(1+interest rate)^-time period]/rate
=$3000[1-(1.09)^-5]/0.09
=$3000*3.889651263
=$11668.95(Approx)
The Present value of $41000=$41000*Present value of discounting factor(rate%,time period)
=$41000/1.09^5
=$26647.19(Approx).
Therefore $41,000 received at end of five years is a better value.
Answer: This rate setting scheme creates an adverse selection problem: Homeowners with houses on unstable soil are more likely to purchase insurance than homeowners with houses that rest on bedrock
Explanation:
California has its own earthquake insurance program for homeowners and the rates vary by the ZIP code, which depends on the proximity of nearest fault line.
However, critics claim that the people who set the rates ignored soil type. Some houses rest on bedrock while others sit on unstable soil. If the soil type is used, rate setting scheme creates an adverse selection problem.
An adverse selection problem is tendency of those in high-risk areas to purchase the insurance claim because there are higher chances they may get affected. Therefore, the homeowners with houses on unstable soil will more like buy insurance than the homeowners with houses that rest on bedrock.
