Answer:
a. We have:
Interest cost of long-term fixed-rate = $191,475
Interest cost of short-term variable-rate = $192,51
b. Long-term fixed rate plan is less costly
Explanation:
a. Determine the total interest cost under each plan.
Interest cost of long-term fixed-rate = Amount required to be borrowed * Fixed interest rate per year * Number of years = $690,000 * 9.25% * 3 = $191,475
Interest cost of short-term variable-rate = (Amount required to be borrowed * First year interest rate) + (Amount required to be borrowed * Second year interest rate) + (Amount required to be borrowed * Third year interest rate) = ($690,000 * 7.50%) + ($690,000 * 12.15%) + (($690,000 * 8.25%) = $192,510
b. Which plan is less costly?
Since the $191,475 interest cost of long-term fixed-rate is less than $192,510 interest cost of short-term variable-rate, this implies that long-term fixed rate plan is less costly.
Answer:
Option (d) is correct.
Explanation:
Given that,
Elasticity of demand for Good A = −3
Percentage decrease in quantity demanded for Good A = 33%
Elasticity of demand for Good A = Percentage change in quantity demanded for Good A ÷ Percentage change in price of Good A
-3 = - 33 ÷ Percentage change in price of Good A
Percentage change in price of Good A = (-33) ÷ (-3)
= 11%
Therefore, percentage increase in price of good A is 11%.
Answer:
Transfer price would be $ 20 less profit part = $ 13
Explanation:
Is necessary to deduct the 35% of the price.
As there is no outside market for the component, and part is normally sold at price of $20, which includes profit.
Hence transfer price would be $ 20 less profit part = 13
Answer:
Bank reconciliation for the month ended July 31
Particulars Amount
Balance as per bank $7,943
Add: Deposit in transit $1,840
Less: Outstanding checks <u>$600 </u>
Adjusted balance as per bank <u>$9,183</u>
Balance as per books $7,964
Add: Direct collections by bank $1,256
($1,240 + $45 - $29)
Less: Bank charges <u>$37 </u>
Adjusted balance as per books <u>$9,183</u>
