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3 years ago

Andrew Company has predicted the following costs for this year for 50,000 units:

Business

1 answer:

krok68 [10]3 years ago

5 0

Answer:

Explanation:

textAndrew Company has predicted the following costs for this year for 50,000 units:ManufacturingSelling and AdministrativeVariable$200,000$ 50,000Fixed300,000150,000Total$500,000$200,000What is the initial selling price needed to obtain a target profit of $25,000 using the variable costmarkup method?Select one:A. $14.70B. $ 5.00C. $ 8.00D. $ 4.50FeedbackRationale

:($300,000 + $150,000 + $35,000) / ($200,000 + $50,000) = 194%

markupVariable cost per unit = ($200,000 + $50,000) / 50,000 = $5.00 × 1.94 = $9.70 markup

Cost plus markup = $5.00 + $9.70 = $14.70

OR(VC $250,000 + FC $450,000 + Profit$35,000) / 50,000 = $14.70The correct answer is: $14.70

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3 years ago

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3 years ago

Suppose Carla has $7000 to invest. Which investment yields the greater return over 4 years: 7% compounded quarterly or 6.85% com

o-na [289]

Answer:

The option with the quarterly compounding provides a higher future value.

Explanation:

Giving the following information:

Initial investment= $7,000

Number of years= 4 years

To calculate the future value, we need to use the following formula:

FV= PV*(1+i)^n

Quarterly compounding:

Interest rate (i)= 0.07/4= 0.0175

n= 4*4= 16

FV= 7,000*(1.0175^16)

FV= $9,239.51

Monthly compounding:

i= 0.0685/12= 0.00571

n= 4*12= 48

FV= 7,000*(1.00571^48)

FV= $9,200.07

The option with the quarterly compounding provides a higher future value.

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3 years ago