Answer:
Allura’s Little Robotics Company sells Good S in a perfectly competitive market with a downward-sloping demand curve and an upward-sloping supply curve. The market price is $62 per unit.
Answer:
1. Ending inventory = $3519
2. Cost of Goods Sold = $21030
3. Sales Revenue = $27279
4. Gross Profit = $6249
Explanation:
FIFO method of inventory valuation is whereby the stock that first comes into the business, leaves first. This is common in perishable inventory such as vegetables or fruits.
Jan 1. Beginning inventory: 53 units x $45 = $2385
Total
53 units x $45 = $2385
Apr 7. Purchase 133 units x $47 = $6251
Total
53 units x $45 = $2385
133 units x $47 = $6251
Jul 16. Purchase 203 units x $50 = $10150
Total
53 units x $45 = $2385
133 units x $47 = $6251
203 units x $50 = $10150
Oct 6. Purchase 113 units x $51 = $5763
53 units x $45 = $2385
133 units x $47 = $6251
203 units x $50 = $10150
113 units x $51 = $5763
1. Ending inventory = 502 - 433 = 69 hence,
69 units x $51 = $3519
2. Cost of Goods Sold =
[$2385 + $6251 + $10150 + (44 units x $51)] = $21030
OR $24549 - 3519 = $21030
3. Sales Revenue =
433 units x $63 = $27279
4. Gross Profit = Sales Revenue - Cost of Goods Sold hence,
$27279 - 21030 = $6249
I believe this shouldn't affect him since he is 75 years old, past the 65 retirement age. So the $50K from this IRA can be withdrawn tax free. If he moved the funds to a checking account BEFORE 65, then it would be taxable. Check with a financial advisor.
Answer:
Explanation:
D0 = $1.88
D1 = 1.88*1.25 = $2.35
D2 = 2.35*1.25 = $2.94
D3 = 2.94*1.25 = $3.67
PV of Dividends:
r = 12%
1/(1.12) = 0.89
PV of D1 = 2.35/0.89 = $2.64
PV of D2 = 2.94/0.797 = $3.69
PV of D3 = 3.67/0.71 = $5.17
Total PV = $11.5
Value after year 3:
(D3*Growth rate)/(Required rate - growth rate) = $3.67*1.06/(0.12-0.06) = $64.8
Pv of 64.8 is 64.8/(1.12)^3 = $46.3
So, the maximum price per share is 11.5+46.3 = $57.8
Answer:
The higher the price, the higher the producer's profits. Your needs and wants are unlimited. If heavy competition for a product keeps its price low, businesses will be very motivated to offer the product for sale.
