Answer:
According to the data provided the opportunity costs is detailed below:
Initial Balance $20,000
Monthly interst $200
Investment $500
________________________
The Opportunity cost is $500
Explanation:
The opportunity cost is the price you pay for not choosing best second alternative when you make a decision. In this case the person has three options:
1. Spending the money
2. Save the money
3. Invest the money
Once the money is spent the opportunity costs is generated and it is measured by the interest rate lost for not keeping the money in the investment that will generate an interest rate of $500 monthly.
Answer:
The total amount of dividends paid over these three years is $8,600
Explanation:
The computation of the total amount of dividend for three years is shown below:
= Net income for first-year - net loss for the second year + net loss for the third year - ending retained earning balance
= $6,700 - $1,200 + $3,800 - $700
= $8,600
As we know,
The ending balance of retained earning = Beginning balance of retained earnings + net income - dividend paid
So, we apply the same formula to compute the dividend amount
Answer:
$150
Explanation:
Calculation of how much income that Gramps will recognize on the first payment.
Since joint survivor annuity has 23.1 as the annual return multiple .
Calculation for Expected return
Expected return =Annual payment *Return multiple
($500*12) =$6,000
$6,000×23.1
=$138,600
Therefore :
$97,020/$138,600
=0.7×100
=70%
The 70% of each of the payment will be the return of capital while the 30%(100%-70%) will be the income.
Hence the first payment be:
30%×500
=$150
Therefore the amount of income that Gramps will recognize on the first payment will be $150
Answer:
539,000.00
Explanation:
As per the contribution margin analysis concept, the break-even point is obtained by dividing fixed cost by contribution margin per unit.
For Etuck327,
The selling price is $39
Variable expense is $28
Break-even in units is 49,000 books.
Contribution margin per unit = selling price - variable costs
=$39- $28
=$11
if Break-even = fixed cost/ contribution margin per unit, then
49,000= fixed cost / 11
fixed costs = 11 x 49000
Fixed costs = 539,000.00
A legal firm would be considered a service company because they provide legal services to clients and persons.
