Answer:
Answer is in table which is attached in the attachment. Please refer to the attachment.
Explanation:
<em>Calculations:</em>
Status quo: Revenue 30* 200= 6000, VC 30*20= 4000, CM 6000-4000= 2000, 2000-3000= -1000 (Contribution Margin – fixed cost = Profit/Loss)
(b) Since the loss is less in Advertising even after $300 cost of advertisement, so we would choose the option 3 for advertising.
(c). In order to survive in the period of recession, a business needs cash and reducing operation expenses can do it better. This business is in loss from last three months so it might be useful to shut down the business for some period.
Answer:
14.74 %
Explanation:
Accounting rate of return = Average Profits / Average Investment x 100
therefore,
Accounting rate of return = ($100,000 - $65,000) / $237,500 x 100
= 14.74 %
where,
Average Investment = ( initial investment + scrape value ) ÷ 2
Answer:
A
Explanation:
it's a because the processing time required by product 1,2 and 3 using machine type 1
D.Is the right answer for sure
Answer:
$388,017.16
Explanation:
The amount that shall be accumulated at the beginning of retirement to provide a $2,500 for the period of 25 years shall be determined through the present value of annuity formula which is mentioned below:
Amount that should be accumulated=R[(1-(1+i)^-n)/i]
In the given question
R=monthly check that will be received=$2,500
n=number of months during which monthly checks will be received=25*12=300
i=interest rate compounded monthly=6/12=0.50%
Amount that should be accumulated=2500[(1-(1+0.50%)^-300)/0.50%]
=$388,017.16
