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xenn [34]
2 years ago
7

Barry, age 45, works for an advertising company, where he earns $75,000. Barry would like to retire at age 65. He earns 9% on hi

s investments, and inflation has averaged only 3% annually. Assuming he is expected to live until age 90 and he has a wage replacement ratio of 80% (in today's dollars), how much will Barry need to have accumulated when he retires to maintain his current lifestyle during retirement
Business
1 answer:
kakasveta [241]2 years ago
7 0

Answer:

$1,064,440.24

Explanation

Age = 45

Retirement = 65 (Retires after 20 years)

Death = 90 (After 25 years of retirement life)

Inflation = 3%

Rate of Return = 9%

Annual Salary  = $75,000

Wage replacement ratio = 80%

Retirement Income = $75,000 * 80% = $60,000

Amount required in future to match the current purchasing power

Inflation effect = $60,000 * (1 + 3%)^20

Inflation effect = $60,000 * (1.03)^20

Inflation effect = $60,000 * 1.80611123467

Inflation effect = $108366.6740802

Inflation effect = $108,366.67. ($108,366.67 is needed to Match Purchasing power of $60,000 in 20 Years)

Total amount needed at the age of 65

i = 9%, Fv = 0, Nper = 25, PMT = -$108,366.67

= PV(9%, 33, -108,366.67, 0)

= 1064440.243

= $1,064,440.24

So, Barry need to accumulated $1,064,440.24 as of the day he retires to adequately provide for his retirement lifestyle.

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Answer:

it is a type of discrimination at workplace which is permitted by law

4 0
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fenix001 [56]

Answer:

Collision

uninsured motorist

comprehensive

liability coverage

Explanation:

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✓comprehensive

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3 0
3 years ago
Lillich, Inc., manufactures and sells two products: Product U6 and Product R5. Data concerning the expected production of each p
Goryan [66]

Answer:

Lillich, Inc.

c. The unit product cost of Product U6 under traditional costing is greater than its unit product cost under activity-based costing by $5.63.

Explanation:

a) Data and Calculations:

Direct labor rate = $28.00 per DLH

                                         Product U6                      Product R5      Total

Expected production            690                                  1,060

Direct materials cost/unit   $250.40                             $167.80

Direct Labor Hours/unit         8.9                                     5.9

Total direct labor hours        6,141                                 6,254        12,395

Direct labor costs               $171,948 ($28*6,141)          $175,112 ($28*6,254)

Total direct materials cost $172,776 ($250.4*690)   $177,868 ($167.8*1,060)

Total overhead                 $636,360                         $658,752                 $1,295,112

Total production cost        $981,084                         $1,011,732

Expected production            690                                  1,060

Cost per unit                      $1,421.86                         $954.46

Traditional costing:

Direct labor costs               $171,948 ($28*6,141)          $175,112 ($28*6,254)

Total direct materials cost $172,776 ($250.4*690)   $177,868 ($167.8*1,060)

Total overhead                   $641,612                          $653,418                 $1,295,112

Total production cost       $986,336                       $1,006,398

Expected production            690                                  1,060

Cost per unit                      $1,429.47                         $949.43

Allocation of overhead based on direct labor hours

= $ 1,295,086/12,395

= $104.48 per DLH

Product U6 = $641,612 ($104.48 *  6,141)

Product R5 = $653,418 ($104.48 * 6,254)  

Estimated Expected Activity

Activity Cost Pools  Activity      Overhead  Product     Product   Total

                               Measures       Costs          U6           R5    

Labor-related           DLHs         $ 201,638    7,125        7,280     14,405

Production orders   Orders            72,840   1,350         1,250      2,600

Order size                MHs          1,020,608   6,500        6,800    13,300

Total                                        $ 1,295,086

Overhead rates:

Labor-related = $201,638/14,405 = $14.00 per DLH

Production orders = $72,840/2,600 = $28.00 per order

Order size = $1,020,608/13,300 = $76.74 per machine hour

Overhead allocation:

                               Product U6                      Product R5              Total

Labor-related         $99,750 (7,125*$14)       $101,920 (7,280*$14) $201,670

Production orders    37,800 (1,350*$28)         35,000 (1,250*$28)    72,800

Order size               498,810 (6,500*$76.74) 521,832 (6,800*$76.74) 1,020,642

Total overhead   $636,360                         $658,752                 $1,295,112

5 0
3 years ago
[The following information applies to the questions displayed below.] Vail Resorts, Inc., owns and operates five premier year-ro
Sphinxa [80]

Answer:

JOURNAL ENTRIES

01 Dec Debit bank $2,900,000 Credit Note payable $2,900,000

31 Dec Debit Snowplow $95,000 Credit Bank $95,000

  c)    Debit inventory $31,000 Credit Accounts Payable $31,000

  d) Debit Maintenance expense $55,000 Credit Bank $55,000

   e)Debit Bank $378,000 Credit Season Passes $378,000

    f) Debit Accounts receivables $740 Credit Revenue $740

   g)  Debit Cost of sales $420 Credit Inventory $420

    h) Debit Bank $260,000 Credit Daily lift passes $260,000

    i) Debit Bank $2,200 Credit refundable deposit $2,200

j)  Debit Accounts payable $15500 Credit Bank $15,500

 k) Debit Bank $410 Credit Accounts receivables $410

    l) Debit Salaries and Wages $264,000 Credit Bank $264,000

Explanation:

1. Prepare journal entries for each transaction. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

8 0
3 years ago
Direct Labor Variances Advanced Micro Devices develops high-performing computing products. Assume one of its processors, Ryzen 7
Butoxors [25]

Answer and Explanation:

The computation is shown below:

a. The labor rate variance is

= (standard rate - actual rate) × actual labor hours

= ($20 - $19.50) × 64,000

= $32,000 favorable

b. The labor efficiency variance is

= (standard hours - actual hours) × standard rate

= (62,500 - 64,000) × $20

= -$30,000 unfavorable

c. the total flexible budget variance is

= standard cost - actual cost

= ($1,250,000 - $1,248,000)

= $2,000 favorable

7 0
3 years ago
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