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bonufazy [111]
3 years ago
11

Trade credit and discounts are important strategies used by firms in the daily operations of their business. Calculate the cost

of a firm's trade credit in each of the following situations (answers should be carried out to 2 decimal points, e.g. 35.78%, not 35% or 36% !) a) 2/12, Net 32 b) 3/15, Net 36 c) 2.5/18, Net 35 d) 2.25/20, Net 38
Business
1 answer:
Olegator [25]3 years ago
5 0

Answer:

When a discount is given as 2/12, Net 32, it means that the customer is allowed a 2% discount if they pay off their purchase in 12 days. If they don't, they would have to pay off the full amount in 32 days.

The Cost of a firm's credit is calculated by the formula:

= Discount %/ ( 100% - Discount %) * (360/Allowed payment days - Discount days)

a. 2 / 12, Net 32

= (2%/ (100 - 2% )) * (360 / (32 - 12))

= 36.73%

b) 3/15, Net 36

= (3%/ (100 - 3% )) * (360 / (36 - 15))

= 53.02%

c) 2.5/18, Net 35

= (2.5%/ (100 - 2.5% )) * (360 / (35 - 18))

= 54.30%

d) 2.25/20, Net 38

= (2.25%/ (100 - 2.25% )) * (360 / (38 - 20))

= 46.04%

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The government has provided tax credits toward individuals who purchase electric vehicles. This is an attempt to do which of the
MariettaO [177]

Answer:

make environmentalism profitable

Explanation:

THe Government´s effort on providing tax credits to those individuals that purchase electric vehicles is an attempt to make environmentalism profitable and encouraging the purchase and trade of electric vehicles that do not use fossil fuels to run and helo the environment, this is a very important effort by the government to make enviromentalism profitable for people and give an incentive to go green.

5 0
3 years ago
Hadley, Inc. manufactures a product that uses $18 in direct materials and $5 in direct labor per unit. Under the traditional cos
Rama09 [41]

Answer:

Total Manufacturing cost per unit is $53

Explanation:

Manufacturing cost is the cost used to manufacture a product, both direct and indirect cost incurred in manufacturing process are included. It is the total value of material cost, labor cost and overhead cost.

Direct Material Cost = $18

Direct Labor cost  = $5 per hour

Manufacturing overhead applied = $13 per unit

Total Activity rate = $30

Activity based costing is the method of allocation of overhead to the products / department / projects on the basis of uses of activity by each one.As we know that calculating an activity rate which is similar to predetermined overhead rate.

Total Manufacturing Cost = Direct material cost + Direct Labor cost + Manufacturing overhead cost

As we know that calculating an activity rate which is similar to predetermined overhead rate. so the activity rate will be used for overhead expense.

Total Manufacturing Cost = $18 + $5 + $30 = $53 per unit

6 0
3 years ago
Is 40 a prime number​
Nat2105 [25]

Answer: No, 40 is a composite number. :)

Explanation:

8 0
3 years ago
Mary wants to help pay for beth's education(her granddaughter). she has decided to pay for  half of the tuition costs, which are
STALIN [3.7K]

First, you have to calculate the amount of tuition when the student reaches age 18. Do this by multiplying $11,000 by 1.07 each year from age 12 until it reaches age 18. Thus, 7 times.

At age 18: 16,508

At age 19: 17,664

At age 20: 18,900

At age 21: 20,223


Then, we use this formula:

A = F { i/{[(1+i)^n] - 1}}

where A is the monthly deposit each year, F is the half amount of the tuition each year illustrated in the first part of this solution, n is the number of years lapsed.

At age 18:

A = (16508/2) { 0.04/{[(1+0.04)^6] - 1}} = $1,244.389 deposit for the 1st year

Ate age 19

A = (17664/2) { 0.04/{[(1+0.04)^7] = $1,118 deposit for the 2nd year

At age 20:

A = (18900/2) { 0.04/{[(1+0.04)^8] = $1,025 deposit for the 3rd year

At age 21:

A = (18900/2) { 0.04/{[(1+0.04)^8] = $955 deposit for the 4th year

3 0
3 years ago
Explaination about floating rate notes as a type of bond​
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Its a suspension bond
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