Answer:
Our answer is 2430798.798
Explanation:
. 70% of pre-retirement salary should be equal to the interest that we get from savings(5% of savings).
Therefore, 0.7 × 173628.4856 = 0.05×savings
==> savings = 2430798.798
Answer:
$525,000
Explanation:
The amount to be recognized as research and development expense for the year includes the cost of research and development services performed by Key Corp. for Orr, the cost incurred on testing of pre-production prototypes and models as well as the cost of testing in search for new products or process alternatives,
In other words, all costs incurred would be expensed since no of them met the capitalization criteria as per generally acceptable accounting principles
Answer:
$897
Explanation:
Calculation to determine the value today
Using Financial calculator to determine the Present value (PV)
N = (12- 2) = 10 years
I = 14%
PMT =12%*1,000=120
FV = $1000
PV=?
Hence;
PV = $896.68
PV=$897 (Approximately)
Therefore the value today is $897
Answer:
a. 300 units
b. $3,750
c. $3,750
d. 100 units
Explanation:
a. The computation of the economic order quantity is shown below:
=
=
= 300 units
The number of orders would be equal to
= Annual demand ÷ economic order quantity
= 15,000 ÷ 300 units
= 50 orders
And, The average inventory would equal to
= Economic order quantity ÷ 2
= 300 units ÷ 2
= 150 units
The total cost of ordering cost and carrying cost equals to
b. Carrying cost = average inventory × carrying cost per unit
= 150 units × $25
= $3,750
c. Ordering cost = Number of orders × ordering cost per order
= 50 orders × $75
= $3,750
d. The reorder point would be
= Annual demand ÷ number of days × lead time
= 15,000 ÷ 300 days × 2 working days
= 100 units