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jolli1 [7]
3 years ago
7

You would like to have $50,000 saved at the end of Year 5. At the end of Year 2, you can deposit $7,500 for this purpose. If you

earn 4.5 percent, how much must you deposit today to reach your goal assuming no other deposits are made
Business
1 answer:
Helen [10]3 years ago
5 0

Answer:

The amount that should be deposited today is $33254.58

Explanation:

The deposit should be such that the future value of the deposit made today and at the end of year 2 should be equal to $50000 after 5 years. Let the deposit made today be x. The equation for the future value will be,

50000 = x * (1+0.045)^5  +  7500 * (1+0.045)^3

50000 = x *  (1.045)^5  +  8558.745938

50000 - 8558.745938  =  x * (1.045)^5

41441.25406 / (1.045)^5  =  x

x = $33254.57769 rounded off to $33254.58

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Dorcan Corporation manufactures and sells T-shirts imprinted with college names and slogans. Last year, the shirts sold for $7.6
storchak [24]

Answer:

b. 18,602 units.

Explanation:

First, we need to use last year's information to determine last year's fixed costs.

Price (P1) = $7.68

Variable costs (VC1) = $2.25

Units sold to break-even (n1) = 21,800

At the break-even point, net income is zero and the fixed cost can be found by:

N=0 = n_1*(P_1-VC_1) -FC_1\\0=21,800*(\$7.68-\$2.25) - FC_1\\FC = \$118,374

With information from last, information for the current year can be determined:

Price (P2) = $10.00

Variable costs (VC2) = $2.25 x 1.3333 = $3.00

Fixed cost (FC2) = $118,374 x 1.10 = $130,211.4

The number of units required to break even is:

N=0 = n_2*(P_2-VC_2) -FC_2\\0=n_2*(\$10-\$3) - \$130,211.4\\n_2 = 18,601.63\ units

Rounding up to the nearest whole unit, Dorcan Corporation must sell 18,602 units to break-even.

7 0
3 years ago
produces sports socks. The company has fixed expenses of $ 90 comma 000$90,000 and variable expenses of $ 0.90$0.90 per package.
antiseptic1488 [7]

Answer:

The contribution margin and the contribution ratio is $0.90 and 50% respectively.

Explanation:

The formula to compute contribution margin per package is shown below:

Contribution margin = Selling price per package - variable expense per package

= $1.80 - $0.90

= $0.90

And, the formula to compute contribution ratio is shown below:

= (Contribution per package ÷ selling price per package) × 100

= ($0.90 per package) ÷ ($1.80 per package) × 100

= 50%

8 0
3 years ago
​A(n) __________ structure is an organizational structure in which executives are at the​ center, spreading their vision outward
damaskus [11]

Answer: ​A <u>CIRCULAR STRUCTURE</u> structure is an organizational structure in which executives are at the​ center, spreading their vision outward in rings grouped by function​ (managers, then​ specialists, then​ workers).

Explanation: Circular structures have a circular organization chart that is a type of business organization chart that is identified by its spherical shape. It is an organizational chart that represents customer services and does not determine the chain of command like other organizational charts. It contains a central circle, where the figure that has the highest authority in the company is located and has the necessary number of concentric circles around it, according to the people who represent the organization.

3 0
3 years ago
Totz Company produces jump ropes. Totz Company has the following sales projections for the upcoming​ year:First quarter budgeted
LenKa [72]

Answer:

Production budget for First quarter= 16,500 units

Explanation:

<em>The production budgeted for a particular period is the expected units to be produced after adjusting the sales budget figures for opening and closing inventories. </em>

Production = Sales volume + closing inventory - opening inventory

Closing inventory = 20% × second quarter sales

                           = 20% × 20,000 = 4,000 units

<em />

<em>Production budget for the first quarter</em>

=17,000 + 4000 -4500

= 16,500 units

8 0
3 years ago
Explain the law of one price and the theory of purchasing power parity. Why doesn't purchasing power parity explain all exchange
Masteriza [31]

Answer:

The law of one price establishes that the product or service price will remain the same for all the entire world.

Explanation:

The law of one price establishes that the product or service price will remain the same for all the entire world. It is necessary to take into account for this law that the price of the currency  needs to be also the same and that the price of the product or service would not be affected by other factors such as additional buyers or sellers in the market.

On the other hand the purchasing power parity refers to the idea of an equilibrium of currencies in exchange rates, it means that the power for purchasing will be represented in the same way in the different countries, and it is important to mention that this theory is base in the law of one price.

The  the long run equilibrium is an idea that in theory represents all the equilibrium of prices, quantities, and markets in general; on the other hand, for the short run equilibrium there are some limitations in which the market cannot be explained as properly and fully balanced.

6 0
3 years ago
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