The above statement is TRUE. Compounding is the process by which the worth of an investment increases because the earnings on an investment, which is made up of the capital gains and interest earn interests as time passes.
Answer:
A. True
Explanation:
In the case when the payment is arise or occur either at the starting of the period or at the closing of the period, so the time line could be constructed for the annuities purpose
Therefore the given statement is true
That means the given statement cannot be false
Hence, the correct option is a.
Answer:
Results are below.
Explanation:
Giving the following information:
Sales $382,500 (units 5,100 $75 per unit)
variable costs $245,000 (48.04 per unit)
fixed costs $98,000.
Option 1:
Increase selling price by 16%.
New selling price= 75*1.16= 87
Sales= 5,100*87= 443,700
variable costs= (245,000)
fixed costs= (98,000)
Net income= 100,700
2. Reduce variable costs to 59% of sales.
Contribution margin= (382,500*0.41)= 156,825
fixed costs= (98,000)
Net income= 58,825
T<u>he most profitable option is the first one.</u>
