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4 years ago

The 2-year discount factor is 0.92.

Business

1 answer:

lora16 [44]4 years ago

3 0

Answer:

a. $0.92

b. $1,840

Explanation:

a. 2 year discount factor is 0.92

Present value of $1 to be received in 2 years =

$1 * discount factor

Present value = $1 * 0.92

Present value = $0.92

b. Present value of $2000 can also be calculated in the same manner by using the 2 year discount factor.

Present value = $2000 * 0.92

Present value = $1,840

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Philadelphia Company has the following information for March: Sales $450,000 Variable cost of goods sold 240,000 Fixed manufactu

Effectus [21]

Answer:

Manufacturing margin = $210,000

Contribution margin = $158,000

Operating income = $53,000

Explanation:

Requirement 1

We know,

Manufacturing margin = Sales revenue - Cost of goods sold

given,

Sales revenue = $450,000

Cost of goods sold = $240,000

Putting the values into the formula, we can get

Manufacturing margin = Sales revenue - Cost of goods sold

Manufacturing margin = $450,000 - $240,000

Manufacturing margin = $210,000

Manufacturing margin also called gross margin.

Requirement 2

Contribution margin = Sales revenue - Variable expense

Given,

Sales revenue = $450,000

Variable expense = Variable cost of goods sold + Variable selling and administrative expenses

Given,

Variable cost of goods sold = $240,000

Variable selling and administrative expenses = $52,000

Putting the values into the formula, we can get

Variable expense = $240,000 + $52,000

Or, Variable expense = $292,000

Therefore,

Contribution margin = $450,000 - $292,000

Contribution margin = $158,000

Requirement 3

Operating income = Contribution margin - Fixed expense

Given,

Contribution margin = $158,000 (From requirement 2)

Fixed expense = Fixed manufacturing costs + Fixed selling and administrating expenses.

Fixed expense = $70,000 + $35,000

Fixed expense = $105,000

Putting the values into the formula, we can get

Operating income = Contribution margin - Fixed expense

Operating income = $158,000 - $105,000

Operating income = $53,000

5 0

3 years ago

True or false a central issue of economics is how to fulfill an unlimited demand for goods and services in a world with limited

fredd [130]

The answer is true. Economics is a system invented to supply a certain demand from a population. But the underlying central issue is will the resources last to supply that demand.

4 0

3 years ago

ShipIt Corporation reported the following rounded amounts (in millions): 2016 2015 Accounts Receivable $ 5,535 $ 5,240 Allowance

Amanda [17]

Answer:

a. 8.65 times

b. 42 days

Explanation:

The computation of Receivables turnover ratio and days to collect is shown below:-

a. Receivables turnover ratio = Net sales ÷ Average receivables

= $43,500 ÷ ($5,180 + $4,880) ÷ 2

= $43,500 ÷ ($10,060 ÷ 2)

= $43,500 ÷ $5,030

= 8.65 times

b. Days to collect = 365 ÷ Receivables turnover ratio

= 365 ÷ 8.65 times

= 42 days

6 0

3 years ago

Match each type of insurance with an example of when the insurance

Simora [160]

Answer:

See below

Explanation:

Renter's insurance

Your stereo and computer are stolen from your apartment. Renters insurance is designed to offer protection against loss or damages to properties belonging to renters living in apartments or standalone units.

Liability coverage

You cause an accident that damages someone else's car. Provide financial protection against medical or damages claims against the policyholder if found at fault in an accident.

Health insurance

You go to the emergency room after a car accident. Take care of medical and other hospital-related expenses should the policyholder or their dependents require medical attention.

Disability Insurance

You have to take a month off from work because of a broken leg. Provide financial compensation against loss of income due to serious bodily injuries to the policyholder.

8 0

3 years ago

Consider the case of a good with external benefits. If you plant trees in front of your house, the neighborhood is more attracti

Veronika [31]

Answer:

1. b. Tax homeowners who plant trees.

2. Win - society and consumer

Loose - tax payers and producers.

Explanation:

1. a). If the good creates a positive externalities, then the $\text{private benefits from the good are less than the social benefits}$ from the good.

In the context, the following would not help to correct the problem :

Taxing the homeowners who plant the trees.

If the government taxes or takes some money form the people or the house owners who plant trees in their neighborhood will discourage the people to plant the trees and would not help in correcting the problem.

2. If the government pays for the program that helps to increase the planting the trees, then,

the one who will win from this program is : society and the consumers

the one who will loose : tax payers and the producers as the government would impose more tax in order to fuel the project.

6 0

3 years ago