Answer:
$24,000
Explanation:
Product A Product B Product C
sales 70,000 97000
Variable cost 37000 51000
Contribution margin 33000 46000
Avoidable cost 10,000 20000
Unavoidable cost 7000 12000 9400
Operating income 16000 14000
Total operating income if product C is dropped is (16000+14000 +3400-9400)
=$24000
Please note that Giant company with still incur the unavoidable cost even if the product is dropped. This is assumed to be a portion of the fixed overhead expenses allocated to the product in the course of normal operation.However , the loss made of 3400 will be avoided as well
Answer:
103.4709
Explanation:
The computation is shown below:
Given that
U.S inflation rate = 3%
Japan inflation rate = 1.5%
Current exchange rate = 105
Now the new exchange rate for the yen is
= Current exchange rate × (1 + Japan inflation rate) ÷ (1 + U.S inflation rate)
= 105 × (1 + 1.5%) ÷ (1 + 3%)
= 105 × (1.015 ÷ 1.03)
= 105 × 0.985436893
= 103.4709
Answer:
Net cashflow = Net income + Depreciation
Net cashflow = 3,100,000 + 500,000 = 3,600,000 dollars
Explanation:
Net cashflow equals net income plus depreciation.
Answer:
a) 7% as their market price will adjsut to give the same yield as the market
b) bond P = -10.17
bonds D = 10.07
Explanation:
we have to calcualte the price variation of the bonds from now (10 years to maturity) to next year (9 years)
Bond P
C 90.000
time 10
rate 0.07
PV $632.1223
Maturity 1,000.00
time 10.00
rate 0.07
PV 508.35
PV c $632.1223
PV m $508.3493
Total $1,140.4716
then, at time = 9
C 90.000
time 9
rate 0.07
PV $586.3709
Maturity 1,000.00
time 9.00
rate 0.07
PV 543.93
PV c $586.3709
PV m $543.9337
Total $1,130.3046
Capital loss: 1,130.30 - 1,140.47 = -10.17
We repeat the process for bond D
C 50.000
time 10
rate 0.07
PV $351.1791
Maturity 1,000.00
time 10.00
rate 0.07
PV 508.35
PV c $351.1791
PV m $508.3493
Total $859.5284
C 50.000
time 9
rate 0.07
PV $325.7616
Maturity 1,000.00
time 9.00
rate 0.07
PV 543.93
PV c $325.7616
PV m $543.9337
Total $869.6954
Capital gain: 869.70 - 859.53 = 10.07
Answer:
Spotlighter, Inc.
Cash
Account Titles Debit Credit
Beginning balance $0
Notes Payable $4,740
Common stock $5,430
Equipment $1,000
Supplies $1,100
Ending balance $8,070
Notes Payable
Account Titles Debit Credit
Beginning balance $0
Cash $4,740
Equipment 1,600
Ending balance $6,340
Common stock
Account Titles Debit Credit
Beginning balance $0
Cash $5,430
Equipment
Account Titles Debit Credit
Beginning balance $0
Cash $1,000
Notes Payable $1,600
Ending balance $2,600
Supplies
Account Titles Debit Credit
Beginning balance $0
Cash $1,100
Accounts Payable $1,500
Ending balance $2,600
Accounts Payable
Account Titles Debit Credit
Beginning balance $0
Supplies $1,500
Ending Balance $1,500
Explanation:
1) Data and Transaction Analysis:
a. Cash $4,740 Notes Payable $4,740
b. Cash $5,430 Common stock $5,430
c. Equipment $2,600 Cash $1,000 Notes Payable $1,600
d. Supplies $1,100 Cash $1,100
e. Supplies $1,500 Accounts Payable $1,500