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3 years ago

The _____ portion of mixed cost that remains constant per unit with activity within the relevant range

Business

1 answer:

kobusy [5.1K]3 years ago

8 0

Answer:

Fixed cost

Explanation:

Mixed cost is fixed cost plus variable cost

Fixed costs are costs that do not vary with output. e,g, rent, mortgage payments

If production is zero or if production is a million, Mortgage payments do not change - it remains the same no matter the level of output.

Hourly wage costs and payments for production inputs are variable costs

Variable costs are costs that vary with production

If a producer decides not to produce any output, there would be no need to hire labour and thus no need to pay hourly wages.

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The main objective of enterprise systems is to create competitive advantage by streamlining business activities within and outsi

Romashka [77]

Answer:

True

Explanation:

Enterprise system, which is also referred to Enterprise resource planning (ERP) refers to a business software which is implemented centrally so as to help coordinate and exchange data smoothly between departments and people.

Such a system makes it convenient for the businesses to share information within as well as with outside parties of an organization and helps integrate information between different departments.

Initially, the ERP software was primarily used by businesses for internal business processes but gradually it has been applied for suppliers, customers and outside business functions.

Effective application of such a system ensures competitive advantage to an enterprise.

6 0

3 years ago

At the end of 2011, retained earnings for the bisk company was $3,050. revenue earned by the company in 2011 was $1,935, expense

Sliva [168]

<u>Calculation of retained earnings beginning balance:</u>

Retained earning beginning balance can be calculated using the following formula:

Retained earnings ending balance = Retained earning beginning balance + Revenue – Expenses - Dividends

Hence using the given information we can solve the equation as follows:

3,050 = Retained earning beginning balance + 1935 – 1065 - 550

3,050 = Retained earnings beginning balance +320

Retained earnings beginning balance = 3050-320 = $2,730

Hence, Retained earnings beginning balance is <u>$2,730</u>

8 0

4 years ago

IgorC [24]

The answer would be b

6 0

3 years ago

A loan is amortized over five years with monthly payments (i.e. end of month) at an annual nominal interest rate of 5% compounde

BlackZzzverrR [31]

Given:
Amortizing period = 5 years
APR=5% per annum
interest rate, i = 0.05/12 per month
number of periods, n = 5*12=60 months (for amortization)
Payment schedule:
$500 at the end of first month,
increased by $20 each month thereafter.
Borrowed amount: not given

Question: Find outstanding loan balance after the 40th payment.

Solution:
Step 1: First we need to find the amount borrowed, P.
From the payment schedule, we decompose the payment into two components,

A. Equivalent uniform monthly payment, As, for a step amount of G=$20 a month, starting with zero after the first month, for a period of 5 years (n=60).
The value of As can be obtained from a specialized formula for step-payments,
$As=\frac{G((1+i)^{n}-i*n-1)}{i(1+i)^{n}-i}$
Substitute values, G=20,i=0.05/12,n=60
$As=\frac{20((1+.05/12)^{60}-(.05/12)*60-1)}{(.05/12)(1+.05/12)^{60}-(.05/60)}$
=565.0847

B. Principal, Pb, for a uniform monthly payment of A a month
The principal,Pb can be found from the basic amortizing formula to be
$Pb=\frac{A((1+i)^{n}-1)}{i(1+i)^{n}}$
We have
Equivalent uniform monthly payment
=500+equivalent uniform payment step amounts
=500+565.0847
=1065.0847
substituting values, A=1065.0847,i=.05/12,n=60
$=\frac{1065.0847((1+.05/12)^{60}-1)}{(.05/12)(1+.05/12)^{60}}$
=56439.591
check: average monthly payment = 1100
duration: 60 months
total amount paid = 60*1100=66000
average annual interest=((66000-56439)/56439-1)/5=3.3% (~ 5%/2) ok.

Amount borrowed, P=56439.591

Step 2: Future value of loan at the end of the 40th month.
This can be found by the compound interest formula
F=P(1+i)^n=56439.591(1+0.05/12)^40=66652.416

Step 3: Future value of payments
first we need to find the equivalent monthly payment of the step payments, using the same formula as in step 1, but with n=40
$A=\frac{G((1+i)^{n}-i*n-1)}{i(1+i)^{n}-i}$
$=\frac{20((1+0.05/12)^{40}-(0.05/12)*40-1)}{(0.05/12)(1+0.05/12)^{40}-(0.05/12)}$
=378.924
This should be added to the constant payment of $500 a month to give
A=500+378.924=878.924
Future value of monthly payment of 878.924
$F=\frac{A((1+i)^{n}-1)}{i}$
Substitute values, A=878.924, i=0.05/12, n=40
$=\frac{878.924((1+0.05/12)^{40}-1)}{0.05/12}$
=38170.213

Step 4: Outstanding balance right after the 40th payment
=future value of loan - future value of payments
=66652.416-38170.213
=28482.20

Answer: Outstanding balance after the 40th payment is $28482.20

7 0

3 years ago

Laurel, Inc., and Hardy Corp. both have 8 percent coupon bonds outstanding, with semiannual interest payments, and both are curr

vredina [299]

Answer:

Laurel bond will decrease by 7.72%

Hardy bond will decrease by 15.8%

Explanation:

current bond price $1,000

interest rate 8%

Laurel bond matures in 5 years, 10 semiannual payments

Hardy bonds matures in 16 years, 32 semiannual payments

if market interest increases to 10%

Laurel bond:

$1,000 / (1 + 5%)¹⁰ = $613.91

$40 x 7.7217 (annuity factor, 5%, 10 periods) = $308.87

market price = $922.78

% change = -7.72%

Hardy bond:

$1,000 / (1 + 5%)³² = $209.87

$40 x 15.80268 (annuity factor, 5%, 32 periods) = $632.11

market price = $841.98

% change = -15.8%

4 0

4 years ago