Answer:
b.$11,088
Explanation:
The computation of the interest expense is shown below
= Cash interest + discount amortized
= ($88,000 × 12%) + ($88,000 - $85,360) ÷ 5 years
= $10,560 + $528
= $11,088
Hence, the interest expense is $11,088
Therefore the correct option is b.
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Answer:
Decrease in the interest rate
Explanation:
Present value is the sum of discounted cash flows
let me use an example to illustrate
the present value of $100 in year 0 discounted at 6% = $100
the present value of $100 one year from now discounted at 6% = $94.33
the present value of $100 two years from now discounted at 6% = $89
We can see that present value decreases with an increase in time
2. the present value of $100 one year from now discounted at 6% = $94.33
the present value of $90 one year from now discounted at 6% = $84.91
We can see that present value decreases with a decrease in the future value.
3. the present value of $100 one year from now discounted at 6% = $94.33
the present value of $100 one year from now discounted at 5% = $95.24
We can see that the lower the discount rate, the higher the present value
Answer:
Instructions are listed below.
Explanation:
Giving the following information:
The standard labor cost for a motor tune-up is given below:
Standard Hours= 2.5
Standard Rate= $33
Standard Cost Motor tune-up= 82.5
The shop supervisor recalls that 58 tune-ups were completed during the week, and the controller recalls the following variance data relating to tune-ups:
Labor rate variance $ 80 F
Labor spending variance $ 118 U
1) Direct labor efficiency variance= (SQ - AQ)*standard rate
Direct labor efficiency variance= (58*2.5 - actual quantity)*33
118= (145 - AQ)*33
118= 4,785 - 33AQ
-4,667= -33AQ
141.42= Actual Quantity
2) Direct labor price variance= (SR - AR)*AQ
80= (2.5 - Actual rate)*141.42
-273.55= -141.42AR
1.92= Actual rate
The answer is <span>Customer value-based pricing
</span><span>Customer value-based pricing is a form of pricing that based on consumer's perceived value of a certain product/services rather than historical cost.
</span>the productss that used this type of pricing usually a tertiary products such as jewelry or rare collectibles.
