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padilas [110]
3 years ago
9

Heller Company offers an unconditional return policy to its customers. During the current period, the company records total sale

s of $850,000, with a cost of merchandise to Heller of $340,000. Based on past experience, Heller Company expects 4% of sales to be returned. How much in net sales will Heller Company recognize for the current period? A. $816,000 B. $850,000 C. $510,000 D. $489,600
Business
1 answer:
Evgen [1.6K]3 years ago
5 0

Answer:

A. $816,000

Explanation:

The formula to compute the net sales is shown below:

= Total sales - sales returned

where,

Sales returned = Total sales × sales return percentage

                        = $850,000 × 4%

                        = $34,000

And, the total sales is $850,000

Now put these values to the above formula  

So, the value would equal to

= $850,000 - $34,000

= $816,000

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When presenting an offer to a listing agent on behalf of a buyer, the buyer's agent must not
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Kristi is considering an investment that will pay $5,000 a year for 7 years, starting one year from today. How much should she p
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Answer:

She should pay $22,819 for this investment.

Explanation:

A fix Payment for a specified period of time is called annuity. The discounting of these payment on a specified rate is known as present value of annuity.

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PV of annuity = P x [ ( 1- ( 1+ r )^-n ) / r ]

Where P = Annual payment = $5,000

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3 0
3 years ago
Assume investors expect a 2.0 percent real rate of return over the next year. If inflation is expected to be 0.5 percent, what i
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Answer:

The correct answer is 2.5%

Explanation:

The rate of inflation is always factored in when calculating the expected market interest for a year.

From the example, the expected real rate of return/interest rate = 2.0 percent

Factoring in an expected 0.5% inflation rate,

= 2.0 + 0.5 = 2.5%

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4 0
3 years ago
A firm has production function f(L,K,M)=L+K2+4M, where L is units of labor, K is units of capital, and M is units of materials.
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Answer:

1800

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Production Function is the relationship between production inputs & production outputs, given technology. It shows maximum output that can be produced with minimum inputs, given technology.

Production Function: f (L,K,M) = L + K^2 + 4M

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Production = 100 + (40)^2 + 100

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= 1800

8 0
4 years ago
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