Answer:
$114 Favorable
Explanation:
For computation of activity variance for personnel expenses first we will find out the planning budget and flexible budget which is shown below:-
Planning Budget = Fixed element of personnel expenses + (Budgeted Client visit × Variable element per client visit of personnel expenses)
= $30,500 + (3,800 × $11.40)
= $30,500 + $43,320
= $73,820
Flexible Budget = Fixed element of personnel expenses + (Actual Client visit × Variable element per client visit of personnel expenses)
= $30,500 + (3,790 × $11.40)
= $30,500 + $43,206
= $73,706
Activity variance = Planning Budget - Flexible Budget
= $73,820 - $73,706
= $114 Favorable
Answer:
Sabrina owes Alexander nothing because the agreement was not in writing
Explanation:
The reason Sabrina owes Alexander nothing is because there was no legal agreement on ground. Alexander reached this agreement with her without the both of them doing the appropriate writings, signings and documentation.
Alexander may have been able to get the courts to rule in his favor if Sabrina has tried escaping or changing the obligation they have both agreed to in writing.
Answer:
The best alternative will be of 180,000 today.
Explanation:
We calculate the present value of the second and third alternatives and compare with the cash received today:
.2. A 20-year annuity of $16,000 beginning immediately
C 16,000
time 20
rate 0.07
PV $169,504.2279
3.- A 10-year annuity of $50,000 beginning at age 65.
C $ 50,000
time 10 years
rate 0.07
PV $351,179.0770
This start at age 65 currently he's 55 so we bring it to present:
Maturity $ 351,179.08
time 10 years
rate 0.07
PV 178,521.64
As non of the alternatives is better than 180,000 today we pick this alternative.