Answer:
Low balance checking account
Explanation:
Since Becca has a small amount of money, only $500, and only uses the ATM around 4 times per month, her best option is a low balance checking account. This type of checking account works very well for people that can only keep a small balance. Many banks don't charge fees for this type of account as long as you write only a limited number of checks, your bank statement is sent to you online, and you use only their ATMs.
The other types of checking accounts usually require much higher balances, and of the minimum balance is not met, then they will charge you a monthly fee.
Answer:
Variable cost per unit= $0.10
Explanation:
Giving the following information:
Cost Machine Hours
March $3,106 15,176
April 2,668 9,558
May 2,892 11,947
June 3,538 17,899
<u>To calculate the variable cost under the high-low method, we need to use the following formula:</u>
Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)
Variable cost per unit= (3,583 - 2,668) / (17,899 - 9,558)
Variable cost per unit= $0.10
Answer:
No it wont have enough money to build a warehouse in two years.
Explanation:
Firstly we are given that the warehouse is $1 million so the company needs to save this amount of money in two years time.
We know that the company has invested $500000 to date therefore we need to calculate if this $50000 per quarter investment will cover the the other portion for $500000 to meet the warehouse cost of $1 million so we will use the future value annuity formula to calculate this which is :
Fv = C[((1+i)^n -1)/i]
where Fv will be the future value after two years of the $50000 investment
C is the periodic payment of $50000
i is the interest rate per period which is 6% per quarter
n is the number of periods the payment is done here it is 4 x 2years= 8 periods / investments of $50000 that will be done.
thereafter we substitute on the above formula:
Fv = 50000[((1+6%)^8 - 1)/6%]
Fv = $494873.40
then we combine this amount to $500000 to see if it reaches $1 million
$494873.40+ $500000 = $994873.40 which is close to the warehouse cost of $1 million but it does not reach it so the company wont have enough money to purchase the warehouse.
Answer:
Predatory pricing.
Explanation:
Predatory pricing is a strategy that is used by firms to gain customers, create barrier of entry from a market, or to drive competition out of the market. The firm prices it's products very low so that competitors cannot afford to sell at the same price.
This results in competitors going out of business. The result of predatory pricing is that there are few firms left in the industry, or there is establishment of a monopoly.
