Answer:
NPV = $ 87,592.90
Explanation:
Net present value is calculated by taking the Present Day (discounted) value of all future Net Cash Flow based on the Business Cost of Capital and subtracting the Initial cost of the Investment.
<u>Calculation of Net present value (Financial Calculator)</u>
Period and Cash flow
CF0 = ($900,000)
CF1 = $200,000
CF2 = $200,000
CF3 = $200,000
CF4 = $200,000
CF5 = $200,000
CF6 = $300,000
Cost of Capital = 8%
NPV = $ 87,592.90
I believe that this problem has the
following choices:
> a debit of $2,500 to
Merchandise Inventory.
> a credit of $2,500 to Sales.
> a debit of $1,900 to
Merchandise Inventory.
> a credit of $1,900 to Cost of
Goods Sold.
The correct answer from the choices
is:
<span>> a credit of $2,500 to Sales
</span>
<span> </span>
Answer:
The correct answer is option e.
Explanation:
In a perfectly competitive market, there are no limitations on the entry and exit of firms. If the existing firms have positive economic profits, this attracts other potential firms to join the market. In case of losses the firms incurring losses exit the market.
If Dirk’s Doughnuts is operating in a perfectly competitive market and is incurring economic losses, firms having losses will exit the market.
This will cause the market supply to decrease. As the supply curve shifts to the left, the price of the product will increase. This will cause profits to increase. The firms will operate at zero economic profits.
Answer:
40%
Explanation:
The markup percentage to the variable cost using the variable cost method can be obtained by dividing the addition of the target profit and total fixed cost by the total variable cost as follows:
Total fixed cost = Fixed overhead costs + Fixed selling and administrative costs = $120,000 + $50,00 = $170,000
The markup percentage to the variable cost = (Target profit + Total fixed cost) / Total variable cost = ($100,000 + $170,000) / $675,000 = $270,000 / $675,000 = 0.40, or 40%.
Therefore, the markup percentage to the variable cost using the variable cost method is 40%.
