Answer:
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Bob has to own his land for 18 years if the price is increasing at the rate of 6% per year.
Given that land was bought by Bob for $16390, the price is increasing at the rate of 6%, price of land today is $46817.
We are required to find the time for which Bob need to own the land so that the price of the land is $46817 today.
Compounding means calculating amount on the principal and the amount added interest.
Rate of increasing the price of land be 6%.
Price when Bob bought the land=$16390.
Price of land today=$46817.
It is like compounding of interest and the sum is calculated as under:
S=P*
In the above equation P is theamount at beginning,r is rate of increasing and n is the number of years.
46817=16390
46817/16390=
=2.8564
=
(Approximately)
From both the sides we will get n=18.
Hence Bob has to own his land for 18 years if the price is increasing at the rate of 6% per year.
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Answer:
The dollar value of ending inventory is $7.500.000
Explanation:
To calculate the dollar value of ending inventory you need to use the next formula:
End inventory= (Beginning inventory + production - sales).$
In this case:
- Beginning inventory: 10.000 units
- January Production: 20.000 units
- Sales: 15.000 units
End inventory= 10000+20000-15000
End inventory= 15.000 units
Dollar value= 150000 . $500= $7.500.000
Answer:
Effect on income= $9,600 increase
Explanation:
Giving the following formula:
Unitary contribution margin= $90
The marketing manager believes that a $7,500 increase in the monthly advertising budget would result in a 190 unit increase in monthly sales.
<u>To calculate the effect on income, we need to use the following formula:</u>
Effect on income= increase in total contribution margin - increase in fixed costs
Effect on income= 190*90 - 7,500
Effect on income= 17,100 - 7,500
Effect on income= $9,600 increase