Answer:
$6,900
Explanation:
When you use the incremental cost allocation method, you must rank cost activities and how they will be allocated. In this case, department 2 is the primary user, and therefore, rental costs must be allocated first to them. Rental costs will be allocated at a $25/hour rate.
Since department 1 is the next user, 100 hours will be allocated using the same rate as department 2, but the next 200 hours will be allocated at the lower $22/hour rate. Total rental cost allocation to department 1 = (100 x $25) + (200 x $22) = $2,500 + $4,400 = $6,900
So what is the question? This is just a statement.
The present value of of $6,811 to be received in one year if the discount rate is 6.5 percent will be $6, 395.31.
What does Present Value mean?
A financial concept that calculates the current value of a future sum of money or stream of cash flows is present value. It's used to compare the relative worth of different amounts of money that aren't available at the same time. The inverse of future value. The sum of future investment returns discounted at a specified rate of return is calculated as the present value of money you expect from future income.
What is Financial concept?
Financial concepts are the fundamental principles and theories of finance, which provide guidance on how to assess and manage financial risks, return, and value. These concepts include the time value of money, diversification, risk-return trade-off, capital budgeting, and portfolio selection. Financial concepts are essential for making sound financial decisions and investments.
The procedure to find an present value:
Present Value = FV/ (1+i)^n
6,811/(1+0.065)^1
6, 395.31
To know more about Present value,
brainly.com/question/15904086
#SPJ1
Answer:C) $2,125.
Explanation:
Interest = Principal x rate x time (period)
using days in a year = 360 days
Interest = $85,000 X 10% x 90/360
=$2,125
Therefore, Alabaster Inc, must repay the $85,000 principle and $2,125 in interest
Answer:
Part 1
<u>Income Statement at 15,600 units</u>
Sales ($ 180 x 15,600) $2,808,000
Less Variable Costs ($126 x 15,600) ($1,965,600)
Contribution $842,400
Less Fixed Costs ($842,400)
Net Income $0
Part 2
$3,278,000
Explanation:
Break even (units) = Fixed Cost ÷ Contribution per unit
= $ 842,400 ÷ ($ 180 - $126)
= 15,600 units
<u>Assume the company's fixed costs increase by $ 141.000</u>
Break even (units) = Fixed Cost ÷ Contribution per unit
= ($ 842,400 + $ 141.000) ÷ ($ 180 - $126)
= 18,212 units
Break even Revenue = 18,212 x $ 180 = $3,278,000
