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Alborosie
3 years ago
12

You are taking a $6,226 loan. You will pay it back in four equal amounts, paid every year, with the first payment occurs at the

end of year 5. So the first payment is 5 periods from now. Even though you did not make payments during that time interest still accrues. The annual interest rate is 11%. Calculate the amount of each annual payment to pay off the loan 4 years after you start paying it back.
Business
1 answer:
Pavlova-9 [17]3 years ago
4 0

Answer:

annual payment = $2,362.88

Explanation:

we must first calculate the future value of the loan at the end of year 4 = $6,226 x (1 + 11%)⁴ = $9,451.51

using the present value of an annuity formula we can determine the annual payment:

annual payment = present value of an annuity / PV annuity factor

  • present value of an annuity = $9,451.51
  • PV annuity factor 11%, 4 periods = 3.1024

annual payment = $9,451.51 / 3.1024 = $2,362.88

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Peggy-Sue's cookies are the best in the world, or so I hear. She has been offered a job by Cookie Monster, Inc., to come to work
Ivan

Answer:

Accounting profit $103,000

Economic profit(loss here) is -$64,000

She should rather take the job at Monster Inc as she is not enjoying an economic profit

Explanation:

In this question, we are asked to calculate the economic and accounting profits for Peggy-sue’s cookies. We proceed as follows;

Accounting profit(I.e profit without opportunity cost) = 250,000 - 80,000 - 22,000 - 40,000 - 5,000 = $103,000

The Economic profit(profit with opportunity cost) = Accounting Profit - opportunity cost

Let’s calculate the opportunity cost;

Opportunity cost = 160,000( her salary I’d she was working with Monster Inc) + 35,000 * 20%( her investment if she leaves the company) = 160,000 + 7,000 = 167,000

Her Economic Profit = 103,000 - 167,000 = -64 000( a loss in this case)

5 0
3 years ago
Read 2 more answers
Developing an understanding of cultural implications can greatly improve workplace interactions in the long run, resulting in im
skelet666 [1.2K]

Developing an understanding of cultural implications can greatly improve workplace interactions in the long run, resulting in improved relationships with suppliers, customers and employees.

<h3>What are cultural implications?</h3>

The impacts of a policy, event, activity or movement on a particular culture are referred to as cultural implications.

External and internal events can weaken, change, or reinforce specific parts of a culture, affecting the success of cultural globalization.

In the long term, developing a cultural knowledge can considerably improve workplace interactions, resulting in improved connections with suppliers, customers, and employees.

Therefore, option D is correct.

To learn more about the cultural implications, refer to:

brainly.com/question/15373432

#SPJ1

3 0
2 years ago
Appliance Possible Inc. (AP) is a manufacturer of toaster ovens. To improve control over operations, the president of AP wants t
joja [24]

Answer:

Appliance Possible Inc. (AP)

a) Flexible Budgets for productions level:

i) Production level of 90,000 units:

Unit variable cost = $13 $(7+4+2)

Total Variable Costs = 90,000 x $13 = $1,170,000

Fixed Costs = $225,000

Total Costs = $1,395,000

ii) Production level of 105,000 units:

Total Variable costs = 105,000 x $13 = $1,365,000

Fixed Costs = $225,000

Total Costs = $1,590,000

iii) Production level of 120,000 units:

Total Variable costs = 120,000 x $13 = $1,560,000

Fixed Costs = $225,000

Total Costs = $1,785,000

b) If AP sells the toaster ovens for $18 each, to make a profit of $309,000 before taxes, units to be sold are:

Break-even Point + Target Profit =  (Fixed Cost + Target Profit)/Contribution per unit

Contribution per unit = $18 - $13 = $5

= ($225,000 + $309,000)/ $5

= $534,000/$5

= 106,800 units

Explanation:

a) A flexible budget tries to change the level of output.  It is a technique used to assess performance under different volumes or activities.  It helps management to make the right decisions, given the fact that different levels of activity may call for different cost and revenue reflections.

b) To make a target profit, the fixed cost is added to the target profit and divided by the unit contribution.  This produces the number of units to be sold in order to achieve the target profit.

c) Contribution is the difference between the selling value and the variable costs.  It is the element that covers fixed costs and generates profit before taxes.

7 0
3 years ago
Suppose the current price of a good is $130. At this price, the quantity supplied is 125 units, and the quantity demanded is 165
Natali5045456 [20]

Answer:

Equilibrium quantity: 145

Equilibrium price: $140

Explanation:

In order to find the answer, first we determine the current difference between quantity supplied and quantity demanded.

Quantity supplied - quantity demanded = difference

125 - 165 = -40

So we have a shortage of -40 units.

We have the information that a $1 increase in price increases supply by 2, and decreases demand by 2. Thus, in order to close the shortage, we need a $10 price increase, because this will raise supply by 20 units, and lower demand by 20 units as well, bringing the 40 gap to 0.

For this reason, the equilibrium quantity is 145 units, and the equilibrium price is $140.

5 0
2 years ago
Multiple Production Department Factory Overhead Rates
Vinil7 [7]

Answer:

total overhead costs for blending department = $342,000

total machine hours blending department = 2,960

overhead rate per machine hour = $342,000 / 2,960 hours = $115.5405405 per machine hour

total overhead costs for packaging department = $324,000

total direct labor hours packaging department = 800

overhead rate per direct labor hour = $324,000 / 800 hours = $405 per machine hour

product             blending department             packaging department

Whole milk       1,210 x $115.54 = $139,804     260 x $405 = $105,300

Skim milk          980 x $115.54 = $113,230       280 x $405 = $113,400

Cream               770 x $115.54 = $88,966       260 x $405 = $105,300

total                       $342,000                                 $324,000

total overhead rate assigned to each product:

product          blending dep.          packaging dep.           total

Whole milk       $139,804                   $105,300               $245,104

Skim milk          $113,230                    $113,400               $226,630

<u>Cream               $88,966                    $105,300              $194,266  </u>

total                 $342,000                   $324,000              $666,000

7 0
3 years ago
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