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Hoochie [10]
2 years ago
15

Silver Corporation, which operates a department store, sells a television to a store employee for $300. The regular customer pri

ce is $500, and the gross profit rate is 25%. The corporation also sells the employee a service contract for $120. The regular customer price for the contract is $150. How much must the employee include in income from both these transactions in total
Business
1 answer:
tatuchka [14]2 years ago
8 0

Answer:

$75

Explanation:

Calculation to determine How much must the employee include in income from both these transactions in total

Customer price for property $500

Less: Gross profit (25%*$500) ($125)

($500-$125=$375)

Employee price ($300)

INCOME $75

($375-$300)

Customer price for service $150

Less: (20%*$150)max exclusion (30)

($150-$30=$120)

Employee price 120

INCOME 0

($120-$120=$0)

Therefore the amount that the employee must include in income from both these transactions in total is $75

You might be interested in
There are two aspects of efficiency that the equilibrium of market for loanable funds exhibits. Select the TWO statements that c
Mashutka [201]

Answer:

a. Savers who lend money are willing to accept a lower minimum interest rate than potential savers who do not lend money.  

b. Investment projects that are financed by savers have larger rates of return than projects that do not receive financing.  

Explanation:

Loanable funds refer to the aggregate amount of money that all sectors, entities and individuals within an economy have decided to keep as an investment, instead of spending on personal consumption, by saving and giving them out as loans to borrowers.  

The market for loanable funds is in equilibrium when the supply of loanable funds by the saver is equal to demand for loanable funds by the borrowers at a given interest rate.

When the market for loanable funds is in equilibrium, efficiency is maximized because projects that have higher rates of return are given priority to be funded first before the projects with lower rates of return are funded. The reason is that savers that have lowest costs of lending provides funds for the projects that have highest return rates in equilibrium. However, potential saver who do not lend money will prefer a higher interest rates.

Therefore, the correct options related to the two aspects of efficiency that the equilibrium of market for loanable funds exhibits are as follows:

a. Savers who lend money are willing to accept a lower minimum interest rate than potential savers who do not lend money.  

b. Investment projects that are financed by savers have larger rates of return than projects that do not receive financing.  

5 0
3 years ago
Matt inherited as a trust a fifteen-year annuity-immediate with annual payments. He has been told that the annuity payments earn
Pavel [41]

Answer:

effective annual interest rate = 6.32%

annual payment = $1,585

Explanation:

I believe that this is an ordinary annuity, so we can use the future and present value of an ordinary annuity formula:

FV = annual payment x FV annuity factor, so annual payment = FV / FV annuity factor

PV = annual payment x PV annuity factor, so annual payment = PV / PV annuity factor

we can equal both equations:

PV / PV annuity factor = FV / FV annuity factor

FV / PV = FV annuity factor / PV annuity factor

$37,804.39 / $15,077.10 = FV annuity factor / PV annuity factor

2.5074 = FV annuity factor / PV annuity factor

the easiest way to solve this is to use an annuity table since we already know that there are 15 periods (I used an excel spreadsheet):

%,15 periods      FV annuity factor     PV annuity factor        FV/PV

1                                 16.097                   13.865                      1.1609

2                                17.293                   12.849                      1.34586

3                                18.599                    11.938                      1.55797

4                               20.024                     11.118                       1.80104

5                                21.579                   10.380                      2.07890

<u>6                               23.276                   9.7122                       2.3966</u>

<u>7                                25.129                   9.1079                       2.7590</u>

8                                27.152                   8.5595                       3.1721

9                                29.361                   8.0607                      3.6425

10                               31.772                   7.6061                         4.4112

The interest rate must be between 6 and 7%:

%,15 periods      FV annuity factor     PV annuity factor        FV/PV

6                               23.276                   9.7122                       2.3966

6.1                             23.45404              9.6461                       2.43145

6.2                            23.63369              9.5858                      2.46549

6.3                            23.81491               9.52467                     2.50034

6.31                           23.83312               9.51851                     2.50387

<u>6.32                          23.85135               9.51236                     2.5074</u>

6.4                            23.99773              9.46337                     2.53585

effective interest rate = 6.32% per year

annual payment = $37,804.39 / 23.85135 = $1,585

           

6 0
2 years ago
Robinson Manufacturing found the following information in its accounting records: $523,000 of direct materials used, $215,000 of
cupoosta [38]

Answer:

Company’s Cost of Goods Manufactured = $1,506,500

Explanation:

Use following formula to calculate cost of goods manufactured

Cost of Goods Manufacture = Direct Material cost + Direct labor cost + Manufacturing overhead + Work in process beginning balance - Work in process Ending balance

Cost of Goods Manufacture = $523,000 + $215,000 + $774,500 + $78,000 - $84,000

Cost of Goods Manufacture = $1,506,500

3 0
3 years ago
Fisher-Price developed a line of toys for infants in China. While they will be the ultimate end user of the product, by definiti
guapka [62]

Answer:

 This is true because babies still have no conscience to choose what kind of products they want to buy. In this case, the target would be the parents who want to offer their children quality toys at a price that is consistent with the market. So the technique would be to sell the product for the qualities that are beneficial for the baby and at the same time flashy, so that the parents make the purchase decision.

4 0
3 years ago
Income Statement, Retained Earnings Statement, and Balance Sheet The amounts of the assets and liabilities of Glacier Travel Ser
pashok25 [27]

Answer:

  Income Statement Dec. 31, 20Y6

<u>           Glacier Travel Service                 </u>

Total revenue                        $900,000

- Wages expense                 ($425,000)

- Rent expense                     ($180,000)

- Utilities expense                 ($75,000)

- Supplies expense               ($38,000 )

<u>- Miscellaneous expense     ($37,000) </u>

EBIT                                        $145,000

<u>- Taxes                                   ($30,000)</u>

Net profit                                $115,000

4 0
3 years ago
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