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trapecia [35]
3 years ago
11

Newsome Inc. buys on terms of 3/15, net 45. It does not take the discount, and it generally pays after 60 days. What is the nomi

nal annual percentage cost of its non-free trade credit, based on a 365-day year?
Business
1 answer:
gogolik [260]3 years ago
5 0

Answer:

16.22%

Explanation:

3/15, net 45 means that if Newsome pays within 15 days, it will get discount of 3%, otherwise it can pay within 45 days in full.

Nominal annual percentage cost of  non-free trade credit based on 365 days can be calculated using the below formula:

Discount %/(100%-Discount %)*(365/(Actual credit days – Discount days))

In this case

Discount%=2%

Actual credit days=60

Discount period=15

Cost of non- free credit=2%/(100%-2%)*(365/(60-15)

                                       =2%/98%*(365/45)

                                       =0.02*8.11

                                       =16.22%

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2 years ago
A July sales forecast projects that 5,000 units are going to be sold at a price of $12.50 per unit. The management forecasts 2%
Pavlova-9 [17]

Answer:

P_i = 5000 units *12.5\frac{dollars}{unit} = 62500 dollars

And for the new case we know that the sales increase by a factor of 2%, so then we can find the new number of sales like this:

1.02*5000 units= 5100 units

And the Total August sales would be given by:

P_f = 5100 units *12.5 \frac{dollars}{unit}= 63750 dollars

And the correct answer for this case would be:

$63,750

Explanation:

For this case the original number of sales for this case is 5000 units and the unitary price is given by 12.5 \frac{dollars}{unit}

And the total sales for the original case would be given by:

P_i = 5000 units *12.5\frac{dollars}{unit} = 62500 dollars

And for the new case we know that the sales increase by a factor of 2%, so then we can find the new number of sales like this:

1.02*5000 units= 5100 units

And the Total August sales would be given by:

P_f = 5100 units *12.5 \frac{dollars}{unit}= 63750 dollars

And the correct answer for this case would be:

$63,750

7 0
3 years ago
QUESTION 3 Project governance does NOT include Setting standards for project selection. Overseeing project management activities
zimovet [89]

Answer: Allowing project managers to plan the project the way they see fit.

Explanation: Project governance may be described as collectively adopted and designated framework or structure which is employed to serve as a guide or model during the entire process of project planning and development. The project governance model is often in tandem with the organizational management framework and provides the necessary guidance and protocol for project management. Hence, it includes setting standard benchmarks, continuous monitoring of project activities and Options for standard incorporation and continuous improvement.

8 0
2 years ago
Sleep Tight, Inc., manufactures bedding sets. The budgeted production is for 51,500 comforters this year. Each comforter require
andrezito [222]

Answer:

Total direct labor hours= 77,250

Direct labor cost= $911,550

Explanation:

Giving the following information:

Production= 51,500 units

Standard hours= 1.5 per unit

Standard rate= $11.8 per hour

<u>First, we need to calculate the direct labor hours required:</u>

Total direct labor hours= 1.5*51,500= 77,250

<u>Now, the direct labor cost:</u>

Direct labor cost= 77,250*11.8

Direct labor cost= $911,550

3 0
2 years ago
A consultant predicts that there is a 25 percent chance of earning $500,000 and a 75 percent chance of earning $100,000. The exp
antiseptic1488 [7]

Answer:

$173,205

Explanation:

According to the scenario, computation of the given data are as follows:

Given data:

Earning (X1) = $500,000

Chances of X1 (Y1) = 25%

Earning (X2) = $100,000

Chances of X2 (Y2) = 75%

Expected Profit (Z) = $200,000

Formula for solving the problem are as follows:

Standard deviation = [ (X1 - Z)^2 × Y1 + (X2 - Z)^2 × Y2 ]^1/2

By putting the value in the formula, we get

Standard deviation = [ ($500,000 - $200000)^2 × 0.25 + ($100,000 - $200,000)^2 × 0.75 ]^1/2

= [ $22,500,000,000 + $7,500,000,000 ]^1/2

= ($30,000,000,000)^1/2

= $173,205.08 or $173,205

Hence, $173,205 is the correct answer.

6 0
3 years ago
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