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morpeh [17]
2 years ago
11

Joss is a marketing consultant. Iris and Daphne are potential customers interested in commissioning Joss to undertake a market s

urvey and compile the findings in a report. Iris is willing to pay $500 for the service while Daphne is willing to pay $800. Suppose that the opportunity cost of Joss's time is $1,200. Assume that Iris and Daphne do not know each other. Which of the following statements is true?
a. only Iris will purchase Joss's services and Joss will undertake the job for her.
b. only Daphne will purchase Joss's services and Joss will undertake the job for her.
c. both Iris and Daphne will purchase Joss's services and Joss will undertake the job.
d. both Iris and Daphne will want to purchase Joss's services but Joss will not be willing to undertake the job.
Business
1 answer:
posledela2 years ago
6 0

Answer: d. both Iris and Daphne will want to purchase Joss's services but Joss will not be willing to undertake the job.

Explanation:

Iris will want Joss's services but they will be unable to afford them as Iris is only willing to pay $500 whereas Joss wants $1,200 for the job.

The same goes for Daphne who is only willing to pay $800.

Both of them will therefore want to hire Joss but will be unable to.

Joss could however charge both of them their willingness to pay and then sum the cash up and give them both the research whilst still making a profit.

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Bringham Company issues bonds with a par value of $540,000 on their stated issue date. The bonds mature in 6 years and pay 9% an
Vladimir [108]

Answer:

1. $24,300

2. 12

3. the bond is trading at a discount.

4. $470,090.86

5. <u>Journal Entry</u>

Cash $470,090.86 (debit)

Bond Payable $470,090.86 (credit)

Explanation:

<u>1. seml-annual Interest payment</u>

Seml-annual Interest payment = ($540,000 × 9 %) ÷ 2

                                                  = $24,300

<u>2. Number of seml-annual Interest payment</u>

Number of seml-annual Interest payment = 6 years × 2

                                                                     = 12

<u>3. Issue</u>

The annual market rate for the bonds (YTM) ,  12% is greater than the coupon rate of the bond 9%.

The Price will be less than the par value and we say that the bond is trading at a discount.

<u>4. Computation of the Issue Price, PV</u>

PMT = $24,300

n = 12

YTM = 12 %

FV = $540,000

p/yr = 2

PV = ?

Using a Financial Calculator, the Issue Price, PV is $470,090.86

<u>5. Journal Entry</u>

Cash $470,090.86 (debit)

Bond Payable $470,090.86 (credit)

4 0
3 years ago
Karla Salons leased equipment from Smith Co. on July 1, 2021, in a finance lease. The present value of the lease payments discou
photoshop1234 [79]

Answer:

d. $5,204

Explanation:

Interest expenses up to December 31, 2020 = (Total present value of lease payment - Lease payment on July 2021) * 8% * 6/12

= $61,600 - $8,500 * 8% * 6/12

= $53,100 * 8% * 6/12

= $2,124

Depreciation Expenses up to December 31, 2021

= Fair value of equipment / Useful life * 6/12

= ($61,600 / 10) *6/12

= $6,160 * 6/12

= $3,080

Therefore, the total decrease in earnings (Pretax) in Larlas December 31, 2021 Income statement would be

= Interest expenses + Depreciation Expenses

= $2,124 + $3,080

= $5,204

3 0
3 years ago
Individual marketing across segments creates more total sales than any other type of marketing. ​
Flura [38]

Answer:

false

Explanation:

7 0
3 years ago
The study of economics is primarily concerned with:
IgorC [24]
Choices/ The way goods and services are produced and provided to consumers, and to used by them.
5 0
2 years ago
You are saving for a Porsche Carrera Cabriolet, which currently sells for nearly half a million dollars. Your plan is to deposit
Firdavs [7]

Answer:

  • 1. $486,134.86
  • 2. $525,593.86
  • 3. $602,492.04

Explanation:

You need to use the formula to calculate the future value of a constant annual deposit:

      Future\text{ }value=Deposit\times \bigg[\dfrac{(1+r)^n-1}{r}\bigg]

Where r is the expected percent return, and n the number of years.

<em><u>1. For a deposit of  $30,800 at the end of each year for the next 11 years, with 7% interest.</u></em>

You will have saved:

         Future\text{ }value=\$ 30,800\times \bigg[\dfrac{(1+0.07)^{11}-1}{0.07}\bigg]

         Future\text{ }value=\$ 30,800\times 15.7835993=\$486,134.86

<em><u>2.  For a deposit of $33,300 each year, for the same number of years and with the same interest rate.</u></em>

You will have saved:

       Future\text{ }value=\$ 33,300\times \bigg[\dfrac{(1+0.07)^{11}-1}{0.07}\bigg]

      Future\text{ }value=\$ 33,300\times 15.7835993=\$525,593.86

<em><u>3. For a deposit of $30,800 each year, but with 11 percent interest, for 11 years.</u></em>

        Future\text{ }value=\$ 30,800\times \bigg[\dfrac{(1+0.11)^{11}-1}{0.11}\bigg]

       Future\text{ }value=\$ 30,800\times 19.56143=\$602,492.04

3 0
3 years ago
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