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ycow [4]
3 years ago
13

Gross Inc. signs a five-year licensing agreement with Maiger Company. Gross Inc. will pay Maiger annual installment payments of

$10,500 at the beginning of each of the five years. The fair value of the contract is $48,000. Over the five-year contract period, Gross Inc. will pay interest of:
Business
1 answer:
olganol [36]3 years ago
7 0

Answer:

$4,500

Explanation:

First, calculate the total Installment

Total Installment payment = Annual Installment x Numbers of annual

Where

Annual Installment = $10,500 per year

Numbers of annual = 5 years

Installment payment = $10,500 per year x 5 years

Installment payment = $52,500

Now use the following formula to calculate the Interest payent

Interest payment = Installment Payment - Fair value of contract

Where

Installment Payment = $52,500

Fair value of contract = $48,000

Placing values in the formula

Interest payment = $52,500 - $48,000

Interest payment = $4,500

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3 years ago
For the coming year, Belton Company estimates fixed costs of $60,000, the unit variable cost of $25, and the unit selling price
NeTakaya

Answer:

1. Break even point in units = 2,400 units

2. Sales required = 6,400 units

3. Operating income = $140,000

Explanation:

Given:

Fixed costs = $60,000

Variable cost =$25 per unit

Selling price = $50 per unit

Computation:

1. Break-even point in units of sales.

Contribution per unit = sales - VC

Contribution per unit = $50 - $25

Contribution per unit = $25

Break even point in units = Fixed costs / Contribution per unit

Break even point in units = $60,000 / $25

Break even point in units = 2400 units

2. Unit sales required to realize operating income = $100,000

Sales required = (Fixed costs + Operating income) / Contribution per unit

Sales required = ($60,000 + $100,000) / $25

Sales required = 6400 units

3. Operating income if sales total = $400,000

Contribution margin = [$25/ $50]100 = 50%

Operating income = Contribution margin - Fixed costs

Operating income = ($400,000 × 50%) - $60,000

Operating income = $140,000

5 0
3 years ago
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Nonamiya [84]

Answer:

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Market maven -

The term is associated with the person, who has the complete knowledge of the goods and services and the market , is referred to as a market maven.

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Hence , from the given scenario of the question,

The correct answer is market maven .

7 0
3 years ago
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