Can somebody help me figure out what he means by this assignment. Don't actually do it but like explain it to me

The next two questions refer to the following fictional financial statement from Sharpie Markers, who sells their markers direct

Karo-lina-s [1.5K]

Answer:

B. 20,904

Explanation:

For computing the additional pens first we have to determine the contribution per unit which is shown below:

Revenue $500,000

Less: Plastic cost -$200,000

Less: ink cost -$1,000

Contribution margin $299,000

Divided by Number of units sold ($500,000 ÷ $2) $250,000

Contribution per unit $1.196

Now the additional pens required is

= $25,000 ÷ $1.196

= $20,904

6 0

4 years ago

What tactics does a financial planner apply to deal with a difficult client? A. Persuasion or surrender B. Accusation or surrend

Komok [63]

Answer:

A. Persuasion or surrender

Explanation:

When dealing with a difficult client one of two tactics are applied either Persuasion or Surrender. First, you would try to calmly but firmly explain the situation to your client and persuade them to follow your professional instructions and that you know exactly what you are doing, that the plan that you have presented is the best option going forward. If the persuasion is unsuccessful then the next best tactic would be to surrender the job and move on to the next client.

5 0

3 years ago

Odeletta Corporation is considering an investment of in a land development project. The investment will yield cash inflows of pe

Bond [772]

Answer: $337,800

Explanation:

Cashflow is constant so is an annuity.

The Present value of the Investment;

= Present Value of Cashflow - Investment cost

= (220,000 * Present value interest factor of an annuity, 5 years, 9% ) - 518,000

= (220,000 * 3.89) - 518,000

= 855,800 - 518,000

= $337,800

4 0

3 years ago

A University of Iowa basketball standout is offered a choice of contracts by the New York Liberty.

Ratling [72]

Answer: The lowest interest rate at which the present value of the second contract exceeds that of the first is a. 7 percent.

Explanation:

Calculating present values is a useful way to compare cases where money is to be received in the future. The higher the present value (when comparing cases where you get money), the better. To calculate it, we make use of the next formula:

$PV=\frac{C}{(1+r)^{n}}$

Where PV: Present value,

C: Cash flow at a given period,

r: Interest rate, and

n: Number of periods that will have passed (in this case, we are talking about years).

Now, since we are getting money twice in each case (the first payment one year from today, and the final payment two years from today), we can restructure our present value formula to include these two payments. We will get something like this:

$PV=\frac{C_1}{1+r}+\frac{C_2}{(1+r)^{2}}$

Notice how each fraction represents one of the payments received, with one having an 'n' of 1 year, and the other one having an 'n' of 2 years. C₁ and C₂ represent the first and the second payment, respectively.

Now that we have our completed formula, let's review each contract's present value (PV) with the lowest interest rate (7%), just to see how it turns out. Remember that 7% equals 0.07 in any formula:

Contract A) This one gives her $100,000 one year from today and $100,000 two years from today.

$PV_{A,0.07}=\frac{100000}{1+0.07}+\frac{100000}{(1+0.07)^{2}}\\PV_{A,0.07}=93457.944+87343.873\\PV_{A,0.07}=180801.817dollars$

So Contract A's present value at 7% interest rate would be equal to $180801.817.

Contract B) The second one gives her $132,000 one year from today and $66,000 two years from today.

$PV_{B,0.07}=\frac{132000}{1+0.07}+\frac{66000}{(1+0.07)^{2}}\\PV_{B,0.07}=123364.486+57646.956\\PV_{B,0.07}=181011.442dollars$

So Contract B's present value at 7% interest rate would be equal to $181011.442, which exceeds that of Contract A.

Since among our options of interest rates, 7 percent is the lowest one, and, with this taken into account, the present value of the second contract (Contract B) exceeded that of the first (Contract A), the answer is a. 7 percent.

8 0

3 years ago

Both nondeductible contributions to a traditional IRA and contributions to a Roth IRA are similar in the sense that neither prov

Nastasia [14]

Answer:

The answer to this question can be defined as follows:

Explanation:

In part A

When Most citizens can't deductible in tax and their daily IRA donation, when the revenue is higher then all thresholds refer to specific levels. So, It can also pay to save for a non-deductible IRA to your withdrawal. Even if your IRA is not exempt.

Regulations on IRA Revenue:

When a company provides individuals or their spouse has been decided to hire by users have a 401(k) or 403(b) employee withdrawal account, experience some IRA depreciation contribution limits donations.

For an alternative to Roth IRA:

Most individuals have incomes above limits and the Roth IRA may indeed meet the criteria for a frequent IRA tax benefit and the higher level donation.

In part B

I will also take a glance at the answer from a tax viewpoint if a competent payment decreases subject to tax salaries and further decreases taxable income. It is a great way for both management and workers and employers receive big profits without taxation. Its value of a qualified retirement benefit provided for both the worker increases the amount that can be spent on behalf of the company by providing an eligible program.

4 0

3 years ago