Answer:
27.29 months
Explanation:
Using Present Value Annuity (PV A):
PV A = c x (1- 1/(1+r)^t)/r
c = Monthly repayment
t = time it will take to pay off
r = rate of interest per month
$ 11,500 = $500 x (1 – 1 / (1+0.0125)^t / 0.0125
When you solve this problem you get:
1/(1+0.0125)t = 1 – (($11,500)(0.0125) / ($500))
1/1.0125^t = 0.7125
1.0125^t = 1/0.7125
1.0125^t = 1.4035
t = In 1.4035 / In 1.0125
t = 27.29 months
Answer:
True
Explanation:
At least in the short run the company will stop production since the contribution margin will be negative: variable costs are higher than selling price, so the company is losing money with every unit it produces.
The company should start producing again as soon as the price increases and the contribution margin is positive. This way the company will at least be able to cover some of its fixed costs.
The cost of the land & building is split among the assets purchased in proportion to the market value of the assets as a whole in the case of a basket purchase
<h3>What is a
basket purchase?</h3>
It is called a lump sum acquisition because its involves the purchase of many assets as a group.
In this purchase, when an investor purchases an assets, it means the the investor is able to buy many assets as one group in a single transaction,
Read more about basket purchase
<em>brainly.com/question/13884440</em>
Is that more people will buy your product
Answer:
a. 1,090
Explanation:
Without any other information provided, the easiest way to answer this question is to make directly the calculations of income and costs. the logic behind this problem is to calculate all the income and substract the costs of production, in this particular case we have:
+Income: 3,250
-Cost of goods: 1,285
-Operating expenses: 875
Net Income: 1,090