Answer:
The required annual installment payment is $4067.25.
Explanation:
annual installment = (20000×6%)/(1 - (1 + 6%)^6)
= $4067.25
Therefore, the required annual installment payment is $4067.25.
Answer:
Margin of safety in dollars divided by total budgeted (or actual) sales in dollars
Explanation:
The formula to compute the margin of safety is shown below:
Margin of safety = Margin of safety in dollars ÷ total budgeted (or actual) sales in dollars
where,
The margin of safety = Total sales - break-even sales
And, the break-even sales (In dollars) = (Total fixed expenses) ÷ (contribution margin ratio)
The contribution margin ratio = (Contribution ÷ sales) × 100
So, the last option is correct and the rest options are wrong.
Answer:
Consider the possible advantages and drawbacks of a decision.
Explanation:
In Financial accounting, costing is the measurement of the cost of production of goods and services by assessing the fixed costs and variable costs associated with each step of production.
Cost-benefit analysis is also known as the break even analysis, it is an important tool in predicting the volume of activity, the costs to be incurred, the sales to be made, and the profit to be earned is. It is used to determine how changes in differing levels of activities such as costs and volume affect a company's operating income and net income.
Generally, to use the cost-benefit analysis, financial experts usually make some assumptions and these are;
1. Sales price per unit product is kept constant.
2. Variable costs per unit product are kept constant and the total fixed costs of production are kept constant i.e costs can be divided into fixed and variable components.
3. All the units produced are sold i.e there is no change in inventory quantities during the period.
5. The costs accrued are as a result of change in business activities.
6. A company selling more than a product should simply sell in the same mix i.e the sales mix is constant.
Hence, a business performs a cost benefit analysis when it consider the possible advantages and drawbacks of a decision i.e whether or not it would bring value to the company or create a significant level of impact on the business.
Answer:
TuneCore, Audiomack(for People to listen), Spotify, Google Play Music, and Apple Music...
Explanation:
Global trade is trade that happens across international borders. Rather than one country buying and selling things, goods and services are traded between countries across the globe.