Jupiter Company signed a onedashyear $36,000 note payable at 8% interest on March 1, 2019. How much interest expense must be
1 answer:
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Answer: $2.6 per unit.
Explanation:
Given that,
Tons of cement produced and sold = 225,000
Sales revenue = $1,035,000
Variable manufacturing expense = $421,000
Fixed manufacturing expense = $280,000
Variable selling and administrative expense = $29,000
Fixed selling and administrative expense = $220,000
Net operating income = $85,000
Sales price per unit:
=
=
= $4.6 per unit
Variable cost per unit:
=
=
= $2 per unit
Contribution margin = Sales price per unit - Variable cost per unit
= $4.6 - $2
= $2.6 per unit
Answer:
$109,688.89
Explanation:
According to the scenario, computation of given data are as follows,
Formula for Net present value are as follows,
NPV = -Investment in fixed asset - Net working Capital + Operating cashflow × ( 1 - ) ÷ r + Net working capital ×
Where, r = rate of return
n = number of years
By putting the value, we get
NPV = -28,000 - 2,800 + 32,500 × ( 1 - ) ÷ 0.14 + 2,800 ×
By solving the above equation, we get
NPV = $109,688.89