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andrezito [222]
3 years ago
6

The manager of Gloria's Boutique has approved Carla's application for 24 months of credit with maximum monthly payments of $70.I

f the APR is 14.2 percent, what is the maximum initial purchase that Carla can buy on credit?
Business
1 answer:
Ymorist [56]3 years ago
4 0

Answer:

Maximum initial purchase that Carla can buy on credit is <u>$1455.08</u>

Explanation:

Formula = M = [P (1 + r)^n * r] / [(1 + r)^n - 1]

$70 = P [(1 + 0.142/12)^24 * 0.142/12 ] / [(1 + 0.142/12)^24 - 1]

= $70 = P (1.326209535) * 0.142/12 / 0.326209535

= $70 = P * 0.0156934795 / 0.326209535

= P = $1455.08

So, the maximum initial purchase that Carla can buy on credit = $1455.08

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Accepting Business at a Special Price Box Elder Power Company expects to operate at 85% of productive capacity during May. The t
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Answer:

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Explanation:

The computation of total overhead unit cost is shown below:-

Actual full capacity = Production of batteries ÷ Productive capacity

= 40,000 units ÷ 85%

= 47,059

Direct Material per unit = Direct material ÷ Production of batteries

= $240,000 ÷ 40,000

= $6

Direct Labor per unit = Direct Labor ÷ Production of batteries

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Variable Factory Overhead per unit = Variable factory overhead ÷ Production of batteries

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Total overhead per unit = Direct Material per unit  + Direct Labor per unit + Variable Factory Overhead per unit

= $6 + $2.5 + $0.8

= $9.3

Thus, we have applied the above formula.

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