Answer:
Income will increase by $84.
Explanation:
<u>The break-even point is the number of units required to cover the fixed costs. Net income is zero.</u>
First, we need to calculate the unitary variable cost:
Unitary variable cost= 120*0.3= $36
<u>Now, the unitary contribution margin:</u>
unitary contribution margin= 120 - 36
unitary contribution margin= $84
Income will increase by $84.
Answer:
b. $588
Explanation:
Terms 2/10, n/30 means that 2% discount for the payment within 10 days and the full amount to be paid within 30 days.
When Larson Company sold merchandise, the following entry was made to recording revenue (sales) and the receivable:
Debit Receivable Account $1,000
Credit Revenue $1,000
On July 20 Stuart Co. returns merchandise, the entry is made to record the decreasing of Receivable Account:
Debit Revenue $400
Credit Receivable Account $400
The balance Receivable Account of Stuart Co. = $1000-$400 = $600
On July 24, Stuart Co. makes the payment, the sales discount was:
$600 x 2% = $12
The amount of cash received = $600-$12=$588
The following entry is made:
Debit Cash: $588
Debit Sales discount: $12
Credit Receivable Account $600
Answer:
$21,080.2
Explanation:
The price of the car will be the down-payment plus the future value of 375 paid each month for 5 years compounded monthly at 9.72%.
The formula for calculating future value is
PV = P × 1 − (1+r)−n
r
PV is $350
r is 9.72 % or 0.0972 % per year or 0.0081
t is five year or 60 months
FV = 350 x (1-(1+0.0081)-60
0.0081
Fv =350 x 1-0.61628715419
0.0081
FV =350 x( 0.38371284581/0.00810
FV =350 x 47.371956
FV =16,580.20
The value of the car = $4500 + 16,580.20
=$21,080.2
Answer:
Stock price = $74.26
Explanation:
<em>The value of a share can be determined using the price earning ratio model. According to this model, the price of a share is estimated as the EPS of the company multiplied by a representative (benchmark) price- earning (P/E) ratio</em> .
The ratio relates the price of a stock to its earning. A stock with a higher P/R indicates a high potent for growth.
Price of stock =Earnings per share( EPS) × benchmark P/E ratio
The appropriate comparative price earnings ratio in the question has been given as 18.8 times.
DATA-
EPS- 3.95
PE- 18.8
Stock price = 3.95 × 18.8= $74.26
Stock price = $74.26
