The cost of producing a good and getting it to the customers is called the ____

Lusk Corporation produces and sells 14,300 units of Product X each month. The selling price of Product X is $25 per unit, and va

zloy xaker [14]

Answer:

Annual financial disadvantage = $ (669,600)

Explanation:

Relevant cost are future incremental cash costs that arise as a direct consequence of a decision.

The relevant costs of this decision to disconnected includes the following:

The variable cost of making the product = $19 per unit
Sales revenue at a price of $25
Savings in avoidable fixed costs (102,000-72,000) = 30,000

Annual financial advantage

$

Lost contribution $(25-19)× 4,300 units = (85,800)

Saving in fixed cost = 30,000

Monthly net loss 55,800

Annual financial disadvantage

Monthly net loss × 12 months

= (55,800) × 12

= $ (669,600)

8 0

3 years ago

Because your mother is about to retire, she wants to buy an annuity that will provide her with $75,000 of income a year for 20 y

siniylev [52]

The calculated present value of the annuity is $915,166.70.

Explanation and Solution:

Annuity is a collection of fixed payments made or earned either at the close or at the beginning of any term such that a significant initial payment or receipt may be turned into a set of comparatively minor payments or receipts. An annuity that lasts indefinitely is called perpetuity.

The formula for the present value of the annuity is given by:

$P = \frac{1- (1+i)^{-n} }{i} * R$

Where;

R = annual payment = $75,000

i = interest rate = 5.25%

P = Present value of annuity

n = number of years = 20 years

P = $\frac{1- (1+5.25)^{-20} }{5.25} * 75,000$

P = $915,166.70

5 0

3 years ago

An income statement for Sam's Bookstore for the first quarter of the year is presented below: Sam's Bookstore Income Statement F

yawa3891 [41]

Answer:

The contribution margin for Sam's Bookstore for the first quarter is 0.84 or 84 %

Explanation:

Contribution Margin = Contribution ÷ Sales

Where,

Contribution = Sales - Variable Costs

where,

Sales :

Sales = $ 900,000

Number of Books Sold = $ 900,000 ÷ $50

= 18,000 books

Variable Costs Calculation :

Cost of goods sold $630,000

Variable selling expenses ($5 × 18,000 books) $90,000

Variable administrative expenses( 4% × $ 900,000) $36,000

Total Variable Costs $756,000

Therefore,

Contribution Margin = $756,000÷ $ 900,000

= 0.84 or 84 %

7 0

3 years ago

One of the most dramatic changes in connectivity and communications in the past few years has been _______.

bekas [8.4K]

The right phrase to fill the blank is: widespread use of mobile devices with wireless internet connectivity.

This is one of the major changes that have occurred in recent years, where we no longer have to access internet from local area network connection which requires a cable for you to connect to the internet and a computer is no longer necessary to be able to use it as well.

5 0

3 years ago

What happens if you lose the money you invested in your stock?

saveliy_v [14]

If that happen, other investors that bet for the opposite cause of your investment would be the one that gained that money, and you will still able to keep that stocks to collect dividend as long as you don't sell it.
(this circumtances won't happen if the reason you lost the money is the firm going into bankruptcy)

7 0

3 years ago

The cost of producing a good and getting it to the customers is called the _____ .