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Misha Larkins [42]
3 years ago
10

If a customer's bill is $45.00 for the first month their subscription starts and $30.00 each month after that, which date did th

eir service most likely start? The 1st of the month The 10th of the month The 15th of the month The 20th of the month
Business
1 answer:
liubo4ka [24]3 years ago
5 0
<span>Answer- The fifteenth of the month. This question doesn't require a lot of thinking. In other words it is a straightforward question. The subscription for each full month is actually $30. This means the subscriptions for each day is about $1. Since the first subscription was $45, the service started on 15th of the moth ($45-$30).</span>
You might be interested in
A company currently pays a dividend of $3.4 per share (D0 = $3.4). It is estimated that the company's dividend will grow at a ra
ArbitrLikvidat [17]

Answer:

Current price of stock =$128.06

Explanation:

The Dividend Valuation Model is a technique used to value the worth of an asset. According to this model, the worth of an asset is the sum of the present values of its future cash flows discounted at the required rate of return.

The model is given as

P = D× g/(r-g)

P- price, D- dividend payable in year 1, r -cost of equity, g - growth rate in dividend

Cost of equity

The cost of equity can be calculated using the Capital Asset Model (CAPM).

Ke= Rf +β(Rm-Rf)  

Ke =? , Rf- 6.5%, (Rm-Rf)- 1.5, β- 1.3

Ke=6.5% + 1.3× (1.5)= 8.45%

Stock price

PV of dividend in year 1 = 3.4× 1.17× 1.0845^(-1)=3.668

PV of dividend in year 2 =  3.4× 1.17^2× 1.0845^(-2) = 3.9572

<em>PV of dividend in year 3</em>

This will be done in two(2) steps:

Step 1- PV in year 2 terms

3.4× 1.17^2× 1.05/(0.0845- 0.05)= 141.651

Step 2- PV in year 0

141.6513913× 1.0845^(-2)= 120.4375

Current piece of stock =  3.668  + 3.957  + 120.4375 = 128.062

Current price of stock =$128.062

   

5 0
3 years ago
3. A company manufactures two types of products: A and B. Three resources R1, R2, and R3 are required to make these products. a.
mojhsa [17]

Answer:

(i)The units of production of Product A and B (x and y) are the decision variables

(ii)Objective is to maximize profit

(iii)Objective function, Max P=20x+50y

(iv)The Contraints are:

8x+2y\leq500....(i)

2x+5y\leq400.......(ii)

3y\leq180

x>0, y>0

Explanation:

Let the number of Product A=x

Let the number of Product B=y

Each unit of product A requires 8 units of R1 and 4 units of R2.

Each unit of product B requires 2 units of R1, 5 units of R2, and 3 units of R3

The availabilities of resources R1, R2, and R3 are 500, 400, and 180

Since R1 \leq500,

Product A requires 8 units of R1 per production unit

Product B requires 2 units of R1 per production unit

Total Unit of R1 possible is given by the inequality: 8x+2y\leq500....(i)

Since R2 \leq400,

Product A requires 2 units of R2 per production unit

Product B requires 5 units of R2 per production unit

Total Unit of R2 possible is given by the inequality: 2x+5y\leq400....(ii)

Since R3 \leq180,

Product B requires 3 units of R2 per production unit

Total Unit of R2 possible is given by the inequality: 3y\leq180....(iii)

Since the manufacturer also makes a profit of $20 and $50 for products A and B, our objective is to maximize profit

Therefore: Objective function, Max P=20x+50y ......(iv)

5 0
3 years ago
Brody Company makes industrial cleaning solvents. Various chemicals, detergent, and water are mixed together and then bottled in
jek_recluse [69]

Answer:

Brody Company

1. Direct Materials Used in Production:

Beginning balance, raw materials  $124,000

Raw materials purchase                  250,000

Raw materials for production        $374,000

less raw materials, ending balance 102,000

Cost of Direct materials used     $272,000

2. Total Prime Cost:

Cost of Direct materials used     $272,000

Direct labor                                     140,000

Total Prime Cost                         $412,000

3. Total Conversion Cost:

Direct labor $140,000

Factor overheads:

Depreciation on factory equipment 45,000

Depreciation on building 30,000

Factory insurance 15,000

Property Taxes $20,000

Utilities for factory 34,000

Indirect labor salaries 156,000

Total Conversion Cost = $440,000

4. Cost of Goods Manufactured Statement:

Prime Cost                               $412,000

Conversion cost                      $440,000

Beginning Work in Process      124,000

less ending work in process   (130,000)

Cost of goods manufactured $846,000

Unit Product Cost = $846,000/100,000 = $8.46

5. Cost of Goods Sold Statement:

Cost of goods manufactured $846,000

Beginning finished goods          84,000

less ending finished goods      (82,000)

Cost of goods sold               $848,000

6. Income Statement                                                %

Sales Revenue                               $1,200,000      100

Cost of goods sold                             848,000        71

Gross Profit                                     $352,000        29

Operating Expenses:

Depreciation on building $50,000                           4

Property Taxes                    18,000                           1.5

Sales Office Utilities              1,800                         0.15

Administrative salaries     150,000                         12.5

Sales office salaries           90,000                          7.5

Sales Commission             60,000                           5

Total Operating Expenses              $369,800        31

Net Loss                                            ($17,800)     14.83

Explanation:

Raw materials purchases $250,000

Direct labor 140,000

Depreciation on factory equipment 45,000

Depreciation on building 30,000

Depreciation on headquarters building 50,000

Factory insurance 15,000

Property taxes:

Factory 20,000 and Headquarters 18,000

Utilities for factory 34,000

Utilities for sales office 1,800

Administrative salaries 150,000

Indirect labor salaries 156,000

Sales office salaries 90,000

Beginning balance, raw materials 124,000

Beginning balance, work in process 124,000

Beginning balance, finished goods 84,000

Ending balance, raw materials 102,000

Ending balance, work in process 130,000

Ending balance, finished goods  82,000

b) Sales Commission = $60,000 (5% of $1,200,000)

c) Prime cost is the cost of direct raw materials and direct labor.  Conversion cost includes the cost of direct labor and factory overheads.

6 0
3 years ago
Prepare adjusting entries for the following transactions.
g100num [7]

Answer:

1. Debit Depreciation expense  $1,340

  Credit Accumulated depreciation  $1,340

2. Debit Interest expense  $275

   Credit Accrued Interest  $275

3. Debit Supplies expense  $450

   Credit Supplies Account  $450

4. Debit Unearned Service revenue  $3,100

   Credit Service revenue  $3,100

5. Debit Salaries expense  $900

   Credit Accrued Salaries  $900

Explanation:

Depreciation is the systematic allocation of the cost of an asset to the income statement over the estimated useful life of that asset.

It is determined as the depreciable value of the asset over the estimated useful life of the asset where the depreciable value is the difference between the cost and salvage value of the asset

Mathematically,  

Depreciation = (Cost - Salvage value)/Estimated useful life

It is recorded by debiting depreciation and crediting accumulated depreciation.

When interest is incurred as an expense but yet to be paid, it will be accrued for by Debiting Interest expense and crediting accrued Interest. The same applies to salaries incurred but yet to be paid.

When Supplies is purchased, Debit supplies and credit Cash/Accounts payable. As Supplies are used up, debit supplies expense (with the amount used) and Credit Supplies account.

Amount of supplies used up = $550 - $100

= $450

When a fee is received in advance for a service yet to be rendered, the revenue for such fee is said to be unearned. The entries required are

Debit Cash account and Credit Unearned fees or deferred revenue.

As the service is performed and the revenue is earned, debit Unearned fees and credit revenue.

Earned revenue = $4,000 - $900

= $3,100

5 0
3 years ago
A pen that costs five cents to make may cost a consumer $2 to buy. according to critics, this is an example of ________.
inna [77]
I'm not sure I believe its mark up or supply and demand
3 0
3 years ago
Read 2 more answers
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