Answer:
The monthly return on this investment vehicle is 1.37%
Explanation:
A perpetuity contract is one which lasts forever, It does not any time limit. Live Forever Life Insurance Co will pay $1,600 for indefinite time on today's investment of #117,000.
Monthly return will be calculated using following formula:
Present value of Perpetuity = Perpetuity Received / Interest rate
$117,000 = $1,600 / r
r = $1,600 / $117,000
r = 1.37%
Monthly return on the perpetuity is 1.37% for this perpetuity.
Answer:
<u>The correct answer is that the cost of the ending inventory using the retail inventory method is US$ 100,962</u>
Explanation:
Wall-to-Wall Records
Cost Retail
Beginning Inventory $ 48,000 $ 70,000
Purchases $ 210,000 $ 390,000
Cost of Goods Available for Sale $ 258,000 $ 460,000
Cost to Retail Ratio
= $ 258,000 ÷ $ 460,000
= 0.5609 = 56.09%
Cost Retail
Cost of Goods Available for Sale $ 258,000 $ 460,000
− Sales $ 280,000
Ending Inventory $ 180,000
× Cost to Retail Ratio 0.5609
<u>Ending Inventory $ 100,962 </u>
Answer:
B. a fixed-price contract.
Explanation:
"A fixed price contract places minimum administrative burden on the contracting parties, but subjects the contractor to the maximum risk arising from full responsibility for all cost escalations. Also called firm price contract."
Mr. Plow couldn't come back to Springfield because he took full responsability for all cost escalations.
Reference: WebFinance Inc. “What Is Fixed Price Contract? Definition and Meaning.” BusinessDictionary.com, 2019
Answer:
D. Kurt’s division is less risky than the other divisions.
Explanation:
Based on the information provided within the question it can be said that the most likely reason is that Kurt’s division is less risky than the other divisions. Just as the saying goes "the greater the risk, the greater the reward", the same goes for the opposite, the lower the risk that a division has to undertake the lower the percent for the required return.
Is an example of Market segmentation, which divides the market in half, due to a different demographics like age, target market etc.
The new target market that divides the market is possibly ages: 6-9
Hope this helps.
