Answer:
Annual deposit= $99,722.29
Explanation:
Giving the following information:
Future value (FV)= $1,750,000
Number of years (n)= 10
Interest rate (i)= 12%
<u>To calculate the annual deposit, we need to use the following formula:</u>
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
Isolating A:
A= (FV*i)/{[(1+i)^n]-1}
A= (1,750,000*0.12) / [(1.12^10) - 1]
A= $99,722.29
Answer:
a. Tyler says his costs are $25,900, and Greg says his costs are $66,500.
Explanation:
We know accounting cost is the expenditure made on ingredients by the company which is, $25000 that Walter paid for supplies last year. Walter also paid 3 % interest to his uncle,
Interest to the uncle = (30000*3)/ 100
= $900
total accounting cost that an accountant quotes = 25000 + 900
= $25,900
According to the economist explicit cost is $25900. We also include implicit cost in it. If Walter would not be a business then he would be earning $40000 as teacher and $600 interest from savings bank account.
total economic cost according to economist = 25900 + 40000 + 600
= $66,500
A potential risk is confusing the customers - customers have brand loyalty and recognition based off of the look and familiarity of packaging. They might always reach for the "green tic tacs" without even knowing the official flavor because they are familiar with the color, and changing the packaging could affect that.
However, a potential benefit of changing the packaging is attracting new customers who would have otherwise overlooked the product. Making the packaging new and exciting might entice new people to become buyers.
A good way to test this would be with focus groups, which are groups of people who you ask to pretend to be the customer and give you feedback on the idea. Focus groups are a good way to learn the good and bad perceptions about a change before it is put into effect.
Answer:
$106.17
Explanation:
Data provided in the question:
Amount received i.e the Principle amount = $100
Time for which money is kept in savings account, n = 12 months
Interest paid per month by the bank , r = 0.5% monthly
Now,
Future value = principle × ( 1 + r )ⁿ
or
Future value = $100 × ( 1 + 0.005 )¹²
or
Future value = $106.17
Answer:
The break-even level of output is 120 units.
Explanation:
Since Total Cost formula is provided, we can use elements contained in the formulae to determine the break-even level of output.
The break-even level of output is the level of activity where a firm makes neither a Profit nor a Loss. In other words, Profit = $0
<u>Step 1 : Collect data</u>
So given :
TC = 2,400 + 100 Q
This means :
Fixed Costs = $2,400
Variable Costs = $100 per unit
Additional Information gives :
Selling Price per unit = $120
<u>Step 2 : Determine the break-even level of output</u>
Break even (units) = Fixed Costs ÷ Contribution per unit
where,
Contribution per unit = Selling Price - Variable Cost
= $20
thus,
Break even (units) = $2,400 ÷ $20
= 120 units
Conclusion :
The break-even level of output is 120 units.
