Answer:
D. Replacement cost.
Explanation:
As we know that the inventory should be recorded at the cost or market value whichever is lower
Given that
Original cost is less than the net realizable value subtract the profit margin
So we assume the following figures
Original cost $10
Net realizable value 9
Replacement cost 8
NRV less normal profit margin 7
As if we compare the original cost and replacement cost so the lower value is of replacement cost
hence, the same is to be considered
Therefore the correct option is D.
Answer:
Explanation:
Total revenue is the amount of money you got for selling all of your products/services.
Marginal revenue is the amount of money you got for selling the last unit of goods or services.
Certificates of deposit is considered a low-risk investment.
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Explanation:
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CD s or Certificates of Deposits are the accounts for making deposits and are offered by banks. These funds that you deposit in this account will be safer and it should be deposited for some specific time period. There will not be any uncertainty associated with this type of investments.
The interest rates will not be change based on any factors.But the advantage is that if you want to withdraw the invested amount before the maturity period there should be some penalties associated with that. So we can have several CD account to withdraw during the maturity dates.
Answer: Karl must sell 1350 small heaters and 450 large heaters to break even.
We follow these steps to arrive at the answer:
No. Small Large Total
1 Selling Price per unit 80 250
2 Variable Cost per unit 30 120
3 Number of units sold 2100 700 2800
4 Sales mix 3 1
5 Total sales (1*3) 168000 175000
6 Total Variable Cost (2*3) 63000 84000
7 Contribution Margin (5-6) 105000 91000 196000
Next we compute the Weighted Average Contribution Margin as follows:
Now, Break even point (BEP) is computed as
Since the large and small heaters are sold in the 3:1 ratio, we can find the number of large and small heaters to be sold in order to achieve the break even point at 1800 units.
Answer:
The amount to be invested today is $3604.78
Explanation:
This is a case of an ordinary annuity,to calculate the present value, the below formula is made used of:
PV=A*(1-1/(1+r)^N)/r
A is the annuity payment of $1000 for 5 years
r is the rate of return on the annuity of 12%
N is the duration of the annuity payment , that is 5years
PV=$1000*(1-1/(1+12%)^5)/12%
PV=$3604.78
In essence, in order to receive $1000 every year starting a year today for 5 years, the sum of $3604.78 must be deposited today at rate of return of 12% per year.
The amount required would be been different if the first payment of $1000 is due today
