Answer:
The differential revenue is equal to $25,000.
Explanation:
Differential revenue is the difference in revenue that may occur due to different course of actions.
Here, the projected revenue of Alternative A is $125,000.
And, the projected revenue of Alternative B is $150,000.
The differential revenue can be found by calculating the difference between these two.
Differential Revenue
=$150,000-$125,000
=$25,000
So, the differential revenue for this decision will be $25,000.
Lenny will generate $471,250 after-tax cash.
<h3>
What is an insurance policy?</h3>
- The insurance policy, which establishes the claims that the insurer is legally obligated to pay, is a contract between the insurer and the policyholder.
- The insurer guarantees to reimburse losses brought on by risks covered by the policy language in return for an upfront payment known as the premium.
<h3>What is a cash surrender value?</h3>
- If a policyholder or the owner of an annuity contract chooses to cancel their policy before it matures or an insured event occurs, the insurance company will give them the cash surrender value as compensation.
<h3>
Solution -</h3>
Money Lenny will get = $725,000.
Subtract the tax to find the money Lenny will get.
35% of 725,000 = $253,750.
Therefore, Lenny will generate $471,250 after-tax cash.
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Answer:
$93,840
Explanation:
Calculation to determine how much is the total budgeted variable selling and administrative expenses for October
October Total budgeted variable selling and administrative expenses=
(0.6 + 1.2 + 0.3 + 0.35) x 7200 +6000 + 39,000 + 7,200 + 24,000
October Total budgeted variable selling and administrative expenses=2.45x 7200 +6000 + 39,000 + 7,200 + 24,000
October Total budgeted variable selling and administrative expenses=$17,640+6000 + 39,000 + 7,200 + 24,000
October Total budgeted variable selling and administrative expenses=$93,840
Therefore the total budgeted variable selling and administrative expenses for October is $93,840
Answer:
$45,111.41
Explanation:
For calculation of value of the payments today first we need to find out the value at 3 years which is shown below:-
Value at 3 years = PMT × (1 - (1 ÷ (1 + r^n))) ÷ r
= $3,000 × (1 - (1 ÷ (1.0265 ^24))) ÷ 0.0265
= $52,776.45
Now, The value of the payment today = Value at 3 year ÷ (1 + r^n)
= $52,776.45 ÷ (1.0265^6)
= $45,111.41
Therefore we have applied the above formula.
Answer:
Increase
Explanation:
Since the Contribution increased and Fixed Costs have decreased, the resulting effect is an Increase in Net Operating Income. Thus, all other factors remain the same, net operating income will: Increase
