Answer: $50,846.3701
Explanation:
Need to save $4 million to live comfortably,
Interest rate, r = 3%
N = 40 years
= 1,226,241.57
![1,226,241.57=C[\frac{1}{0.03}\times(1-0.3065)+1]](https://tex.z-dn.net/?f=1%2C226%2C241.57%3DC%5B%5Cfrac%7B1%7D%7B0.03%7D%5Ctimes%281-0.3065%29%2B1%5D)
= $50,846.3701
Hence, $50,846.3701 will be the annual payment to have $4 million in the account on 65th birthday.
Answer:
a. Total revenue received:
= 4,500 * 140
= $630,000
Date Account Title Debit Credit
XX-XX-XXXX Cash $630,000
Unearned revenue $630,000
Revenue is unearned because the games have not been played yet therefore Blue Spruce University has not provided the service for which it was paid and has not earned the revenue.
b. The revenue per game is:
= 630,000 / 12 games
= $52,500
Date Account Title Debit Credit
XX-XX-XXXX Unearned Revenue $52,500
Revenue - Ticket Sales $52,500
Answer:
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Explanation:
<em>s</em><em>o</em><em>r</em><em>r</em><em>y</em><em> </em><em>a</em><em>g</em><em>a</em><em>i</em><em>n</em><em> </em><em>i</em><em> </em><em>n</em><em>e</em><em>e</em><em>d</em><em> </em><em>a</em><em>n</em><em>s</em><em>w</em><em>e</em><em>r</em><em> </em><em>t</em><em>o</em><em>o</em><em>,</em><em>a</em><em>n</em><em>y</em><em>o</em><em>n</em><em>e</em>
Answer: b. Increases, decreasing
Explanation: For most companies, the web increases the threat that new competitors will enter the market by decreasing traditional barriers to entry. Traditional barriers to entry include
a. Economies of scale
b. Product differentiation
c. Capital requirements
d. Switching costs
e. Access to distribution channels
f. Cost disadvantages
g. Government policy
thus, by reducing some of these barriers to entry the Web increases the threat of new competition.
Answer:
The marginal benefit from selling the vane without restoring it is $200.
Explanation:
Marginal benefits are the extra income a company can get from selling one additional unit of production.
Zane had already spent $250 in purchasing the vane and the restoration process.
Zane has two options:
- Sell the vane as it is for $200.
- Keep restoring the vane, spend $200 more and sell the vane for $500.
If Zane decides to sell the vane as it is, his marginal benefit will be $200. That would not be enough to cover his costs, this transaction will result in a $50 loss.
If Zane decides to continue the restoration, then his marginal costs will be $200 extra, but his marginal benefit would be $500. If he chose this option he could end up earning a $50 profit.
