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SVEN [57.7K]
3 years ago
10

Your firm is considering the purchase of a new office phone system. You can either pay $ 32 comma 500 ​now, or $ 900 per month f

or 31 months. a. Suppose your firm currently borrows at a rate of 7 % per year​ (APR with monthly​ compounding). Which payment plan is more​ attractive? b. Suppose your firm currently borrows at a rate of 19 % per year​ (APR with monthly​ compounding). Which payment plan would be more attractive in this​ case?
Business
1 answer:
Alex Ar [27]3 years ago
4 0

Answer:

Always the second option will be better because 31 payments x $900 = $27,900, no matter what interest rate you use, it cannot be negative.

Explanation:

A) two options:

$32,500 now or $900 in 31 months

to determine by how much the installment plan is is better, we need to determine the present value of the annuity:

present value = payment x {[1 - 1/(1 + r)ⁿ] / r}

  • r = 7% / 12 = 0.58333%
  • payment = $900
  • n = 31

present value = $900 x {[1 - 1/(1 + 0.0058333)³¹] / 0.0058333} = $25,455

with this plan you save = $32,500 - $25,455 = $7,045

B) if the interest rate is higher, you save even more money:

present value = payment x {[1 - 1/(1 + r)ⁿ] / r}

  • r = 19% / 12 = 1.58333%
  • payment = $900
  • n = 31

present value = $900 x {[1 - 1/(1 + 0.0158333)³¹] / 0.0158333} = $21,914

with this plan you save = $32,500 - $21,914 = $10,586

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The following information is available for Lock-Tite Company, which produces special-order security products and uses a job orde
lakkis [162]

Answer:

1.Cost of direct material used =$168000

2.cost of  direct labor used =$100000

3.Cost of goods manufactured =$396800

4.cost of goods sold =$422100

5.Gross profit = $577900

6.Under applied factory overhead =$84000

Explanation:

Direct labour= (D/L)

Direct material = (D/M)

Factory overhead =( FOH)

Raw material used = material (open) +purchased -material (end)

                               = 30000+194000-56000

                              = 168000.

Entry:  Dr work in process  168000

                   Cr raw material          168000

Manufacturing cost = Raw material used + direct labor cost + factory overhead.

                        = 168000+100000+(16000+23000+100000) = $407000.

COGM= Manufacturing cost+work in process (open)-work in process (end)

          = 407000+9900 - 20100 = $396800.

Applied factory overhead= direct labor * predetermined rate

                                          = 100000*55% = $55000.

entry: Dr  work in process  55000

               Cr Applied factory overhead   55000.

Cost of goods sold = Cost of goods manufactured + finished goods (open) -finished goods (end).

                             = 396800+59000-33700 =$422100.

                                             T-account

Raw material                                                           Work in process

Dr___________Cr__                                      __ DR ___________CR

30000--                                                         (open)  9900 ----

194000---                                                     (D/L)  100000   ---  

             ----                  56000                     (FOH) 55000    ---   20100

            ---- bal figure 168000                             168000  --   bal fig 312800.

Actual factory overhead = $139000

Applied factory overhead =$<u>55000</u>

Under applied factory overhead = 84000.

Sales =                                                                                             1000000

Less cost of goods sold =                                                             (<u>422100</u>)

Gross profit                                                                                    577900

6 0
3 years ago
Nations that have the strongest product liability laws tend to be well- developed economically However, the general case in deve
olasank [31]

Answer:

b. False

Explanation:

The product liability law is weak in developing countries due to its improper implementation while in many countries the law has not been implemented. the customers are not aware about the law and also government efforts does not meet the actual need of the law.  

8 0
3 years ago
Among the advantages of corporations are the ease of raising financial capital, professional management, and
aalyn [17]
I think the most appropriate answer would be B.


I hope it helped you!
8 0
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There are __ in every economy that are used to produce the goods and services that people want and need
d1i1m1o1n [39]
Answer:
limited resources
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Universal Containers has two sales groups. Each group has its own unique sales process. What is the best way to ensure that sale
Gre4nikov [31]

Answer:

The use of a proper CRM.

Explanation:

A CRM basically means or translate to a Customer Management System.

A customer management system is an Information technology tool or software that enables companies to properly manage track and monitor their interactions and relationship with clients or potential customers.

Referring back to the question asked, the best answer to the question is to categories or segment the customer management system into teams and generate a unique assess code such that only the team working on a particular potential customer can access and monitor the status of interaction between a sales person and a customer within the same sales team.

This way, a third party sales team does not have access to the data of other sales team.

8 0
3 years ago
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