Answer:
The company should process the units further.
Explanation:
Base on the scenario been described in the question, we can be able to use the method to prepare an analysis that shows whether the 28,000 units of Product A should be processed further or not.
Sell as is Process
further
Sale as is (28,000 units x $25.00) $700,000
Process further (5,600 units x $105) + (11,200 x $70) $1,372,000
Cost to process further (420,000)
Incremental income (loss) $700,000 $952,000
The company should process the units further
Answer:
6.218%
Explanation:
we can use the present value of an annuity due formula:
present value = annual payment x annuity due factor
- present value = 100
- annual payment = 7
- PV annuity due factor, %, 30 periods = ?
100 = 7 x annuity factor
annuity factor = 100 / 7 = 14.28571429 ≈ 14.286
using an annuity calculator, the interest rate for a PV annuity factor, 30 periods and equal to 14.286 is 6.218%
Renting is is leasing the home monthly for a certain amount & buying is paying in full with mortgage to own the home
Answer:
$38,000 loss
Explanation:
For calculation of entry to record the sale of the tractor first we need to determine the total depreciation and net book value on Jan 1, 2018 which is shown below:-
Total depreciation = (Tractor cost - Salvage value) × (Hours in 2016 + Hours in 2017) ÷ Hours of operation
= ($180,000 - $20,000) × (2,400 + 2,100) ÷ 10,000
= $72,000
Net book value on January 1, 2018 = Tractor cost - Total depreciation
= $180,000 - $72,000
= $108,000
Loss on sale = Sold tractor amount - Net book value on January 1, 2018
= $70,000 - $108,000
= $38,000