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RUDIKE [14]
3 years ago
12

Currently, Glasgow Importers sells 280 units a month at a price of $729 a unit. The firm believes it can increase its sales by a

n additional 40 units if it switches to a net 30 credit policy. The monthly interest rate is 0.5 percent and the variable cost per unit is $480. What is the net present value of the proposed credit policy switch
Business
1 answer:
Natali [406]3 years ago
7 0

Answer:

$1,768,680

Explanation:

Given that:

  • Number of units: 280
  • Price per unit: $729
  • The monthly interest rate: 0.5 % = 0.005
  • Number of  additional units:  40
  • The variable cost per unit:  $480

The net present value of the proposed credit policy switch as the following formula:

NPV =  -[Number of units*price/unit) + (Number of  additional units*Variable cost/unit) + (price/unit - Variable cost/unit)*Number of  additional units] / Rate

NPV = - [($729*280) + ($480*40)] + [($729 - $480) 40]/0.005 = $1,768,680

Hope it will find you well.

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Answer:

Yes, Rawls could collect.

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It is possible that Rawls collects damages due to negligence. This is due to the fact that the main cause of the accident was not substantiated by the Progressive Northern Insurance Company. The company claimed that the accident could have been caused by a series of events and the company was also not certain about the main cause of the accident.

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Your restaurant plans to spend $1,000 on social media ads. Your average meal sells for $10 and food cost is 30%. How many additi
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Answer:

Number of meals = 100

Explanation:

The amount that the restaurant plan to spend on ads = $1000

The average selling price of meal = $10

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An offer is made to sell a house, and the offeree has deposited an acceptance letter in the mailbox, but it has not been receive
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Exercise 4-16 Sheffield Co. reports the following information for 2020: sales revenue $777,100, cost of goods sold $520,000, ope
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Answer:

Sheffield Co  

statement of stockholders' equity    

for the year ended 31th December 2020    

                 Common Stock RE            OCI   Total

Balance Jan 1 360,400      92,040 86,000 538,440

Net Income                                 167,900                 167,900

unrealized loss                                              -53,700     -53,700

Dividends                        -11,670             -11,670

Stock issued

Balance, Dec 31 360,400      248,270          608,670

Explanation:

We need to calcualte the net income:

sales revenue           777,  100

cost of goods sold  (520,000)

operating expenses <u> (89,200) </u>

Net Income                167,900

This will go into retained earnings

Dividends will also impact on retained earnings

Unrealized holding loss on available-for-sale debt securities for 2020 of $53,700.

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The rest, will be post the beginning balance and include this variation.

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