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2 years ago

January 1 of this year, a Company completed the following transactions (assume a 9% annual interest rate):

Business

1 answer:

Stells [14]2 years ago

3 0

Answer:

The cost of the truck that should be recorded at the time of purchase is $46,639

Paying installment is the best option

Explanation:

In order to Calculate the cost of the truck that should be recorded at the time of purchase we need find out present value of future amount of 60,400 with the following formula:

PV=FV/(1+i)^n

FV = Future value

i = interest rate

n = No of years

By applying the formula = 60,400/(1+.09)^3

PV= $46,639

Therefore, $46,639 should be recorded as a cost of truck.

Paying installment is better option than paying lump sum amount of $28,400 as present value of installment method ($26,322 as per below table) is less than immediate payment amount.

PV of installment method

Year installment method PV Factor PV

1 10,400 0.917 9,537

2 10,400 0.842 8,757

3 10,400 0.772 8,029

Total 26,322

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The consumer decision making process is comprised of these five steps: Need recognition, Environmental Scanning, Evaluation of a

Goshia [24]

Answer:

need recognition, information search, evaluation of alternatives, purchase, and post purchase behavior

Explanation:

In simple words, A consumer refers to an individual who acquire a resource in exchange of money or some other resource, to satisfy his or her needs.

The customer decision-making process involves consumers becoming aware of and identifying their interests, gathering input about how to better meet those needs, weighing alternative possible choices, making a buying judgment as well as evaluating their investment.

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2 years ago

When people have insurance against a certain event, the notion that those people are less likely to guard against that event occ

sp2606 [1]

Answer: When people have insurance against a certain event, the notion that those people are less likely to guard against that event occurring is called a moral hazard.

Explanation: Moral hazard happens frequently in cases of insurance. If a person has a house, they can decide to install a vault because it reduces the risk of being robbed;

However, when the same person has arranged an insurance that covers the risk of theft of the house, they will have fewer incentives than in the previous situation, to install the security door and ultimately it will be able to increase the probability of the loss in this Theft case. This behavior, for example, before insurance coverage is called moral hazard.

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3 years ago

What is the critical issues confronting WCC North America and what changes, if any, should be initiated to address the critical

irakobra [83]

Answer and Explanation:

What is the critical issues confronting WCC North America?

WCC North America faces a supply chain management issue whereby there are lapses in integrating divisions within the organization resulting in complications with determining order status of customers.

What changes, if any, should be initiated to address the critical issues?

The text "Supply Chain Logistics Management, by Donald J. Bowersox, David J. Closs, M. Bixby Cooper, John C. Bowersox, 2013" mentions the need to address the critical issue of WCC North America by setting up a system that populates data of customer order status,recognizing them as high volume key accounts, in order to keep order response efficient and effective.

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2 years ago

Of the following activities which is MOST likely to be an interaction between the financial manager and the information systems

ryzh [129]

Answer:

The correct answer is the option A: Developing a system to bill customers, pay suppliers and track inventory.

Explanation:

First of all, an information systems manager has the job of creating, developing and monitoring information systems that could possibly help the organization in its entire structure to improve its performance and therefore that manager focuses in the importance of information as an asset and how could it supports the decision making process for the other executives.

Second of all, a financial manager has the responsability to care about the health of the institution regarding subjects involving money and all of the companies assets. That manager must focuses in the organization of the resources that could help the organization to achieve its goal and how to use them in a proper way.

Finally, in the situation where both of those managers interact together, the main purpose will be to develop an information system, created by the information system manager, that could help the organization to gather information regarding the payment to suppliers, the track of inventory and the bill of customers due to the fact that a system with all that information will help the financial manager to take decisions more properly in order to achieve success.

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3 years ago

Estrada Corporation produced 300,000 watches that it sold for $35 each. The company determined that fixed manufacturing cost per

Advocard [28]

Answer:

Variable cost per unit = $12

The total variable cost = $3,600,000

The total contribution margin = $6,900,000

Explanation:

Number of units produced = 300,000

Selling cost = $35

Revenue = 300,000 × $35

= $10,500,000

Fixed cost = $14 per unit

Total fixed cost = 300,000 × $14

= $4,200,000

Gross margin = $2,700,000

Gross margin is the difference between the Revenue earned and the total cost.

Total cost = $10,500,000 - $2,700,000

= $7,800,000

Total cost = Total Fixed cost + Total variable cost

Total variable cost = $7,800,000 - $4,200,000

= $3,600,000

Variable cost per unit is the ratio of the total variable cost to the number of units produced.

Variable cost per unit = $3,600,000/300000

= $12

Total contribution margin is the difference between the total revenue and the total variable cost.

Total contribution margin = Total revenue - Total variable cost

= $10,500,000 - $3,600,000

= $6,900,000

4 0

3 years ago