Answer:
$143,750
Explanation:
We have to first calculate the present value of the bargain purchase option:
PV = $200,000 / (1 + 6%)⁵ = $149,451.63
net lease amount = $790,000 - $149,452 = $640,548
PVIF Annuity due, 6%, 5 payments = 4.546
Annual payment = $640,548 / 4.456 = $143,750
Answer:
a. Commission
Explanation:
The commission payment system is based on an employee's output, mostly sales achieved. The commission is usually a percentage of the total sales per stipulated time, say weekly, biweekly, or monthly. In the commission-based payment, the more output an employee has, the more money they earn.
The scenario in the case is commission based. For every $100 worth of sales, the payment is $15. The more the sales, the higher the earnings.
Answer
The answer and procedures of the exercise are attached in image.
Explanation
Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.
Answer: c. Contribution margin ratio = 1 − Variable cost ratio
Explanation:
The Contribution margin ratio is defined as the difference between the sales price of a good and it's variable costs. It is expressed as a percentage.
The formula is,
Contribution Margin Ratio = Sales - Variable Costs / Sales
Breaking the formula down further we have,
Contribution Margin Ratio = Sales/ Sales - Variable Costs / Sales
Contribution Margin Ratio = 1 - Variable Costs / Sales
Variable Cost/Sales is the Variable Cost Ratio.
So Option C is correct.
