Answer: $12
Explanation:
In selling the obsolete goods, the company will incur Variable Marketing costs and the alternative will be to throw the goods away.
The relevant costs they will incur are therefore the Variable Marketing costs alone.
The lowest amount that a company should accept for a good is the price that equals it's cost so that they may at least Break-Even.
Seeing as the Variable Marketing Costs are the only relevant cost then the lowest they should accept is the Variable Marketing Costs of $12.
Answer:
obligation ratio: 0.3081 = 30.81%
Explanation:
Total oblication will include all the payment:
property taxes: 2,100 / 12 = 175
insurance: 600 / 12 = 50
car monthly payment: 450
mortage monthly payment: 557.35
Total obligation: 1,232.35
<u>mortgage monthly payment:</u>
PV 110,000
time 360 (30 years x 12 months per year)
rate 0.00375 (0.045 divide into 12 months to get the monthly rate)
C 557.354
<u>total obligation ratio:</u>
1,32.35 / 4,000 = 0.3081
Answer:
All of them.
Explanation:
For considering the annuity formula we can determinate all the proposed factor:
C represent II the amount of each cash flow
r = represent the discopunt rate
while time or "n" represent the numebr of cashflow we have to calcualte the present value.
The timing refer wether the payment are made at the beginning or end of the period.
When made at the beginning it is an annuity-due
and the (1+r) factor multiplies the previous formula to represent the addtional period of capitalization each cashflow has or the one period less to discount for each cashflwo in cases of prresent value.