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
Answer:
The decision is incorrect. It is cheaper to make in house.
Explanation:
Giving the following information:
Make in house:
Direct materials and direct labor 10
Variable factory overhead 6
Fixed factory overhead 4
The company recently decided to buy 10,000 fishing reels from another manufacturer for $18
We need to calculate the unitary variable cost of production. Fixed costs are unavoidable, therefore they shouldn't be taken into account.
Variable cost= direct material + direct labor + variable overhead
Variable cost= 10 + 6= $16
The decision is incorrect. It is cheaper to make in house.
Answer:
$12,000 during the first year or $1,200 per year during 10 years
Explanation:
The IRS considers mortgage points as interest paid in advance, and generally individuals and small businesses will deduct them entirely during the current year. But the taxpayer can choose to deduct that amount ratably over the life of the loan (in this case 10 years). Of course most people chooses to deduct them completely during the first year because the IRS doesn't recognize any interest.
Well managers learn more efficient ways than most others which helps them alot such as having people on task, making sure no one is lacking on working times or any thing is messed up. managers are the ones who keep tracks on tasks that not alot of others can.
