Answer:
Dr Land 397,950
Cr Cash 117,950
Cr Notes payable 280,000
Explanation:
Certain ordinary and necessary costs can be included in the purchase cost of land:
- cost of the land
- title fees
- applicable taxes
- legal fees
- broker fees
- survey costs
- leveling costs
- zoning fees
- etc.
In this case, the total purchase cost of the land = $110,000 + $280,000 + $1,400 + $650 + $5,900 = $397,950
Answer:
10%
Explanation:
Since the bond is selling at a discount, it means that the coupon rate is blow the market rate, so the actual rate must be higher. Since there is only one option with an interest rate above 9%, we must check to see if it works.
10% yearly interest rate = 5% semiannual interest rate
we must determine the PV of the 20 coupons paid and the face value at maturity.
to calculate the PV of the 20 coupons ($45 each) we can use an excel spreadsheet and the NPV function with a 5% discount rate: PV of the coupons = $560.80
the PV of the face value in 10 years = $1,000 / 1.05²⁰ = $376.89
the present value of the coupons and the bond at maturity = $560.80 + $376.89 = $937.69. The PV using a 5% semiannual rate is very similar to $937.75, and since the question asked us to round up to the nearest whole percent, we can assume it is correct.
Answer:
d. I, II, and III are true
Explanation:
Answer:
A. 52% and $11 per unit
Explanation:
The contribution margin ratio is a measure of how much of a business revenue is available for covering its variable expenses. It also reveals how much is left to cover its fixed cost. The contribution margin is the unit income generated from each product sold. To calculate contribution margin ratio we divide contribution margin by sales. i.e
Contribution margin ratio = (contribution margin)/sales
Contribution margin = (sales - variable expenses)/sales
OR
contribution margin = (selling price - average variable cost)/ selling price
Since selling price is $21 and average variable cost is $10
contribution margin = (21 - 10)/21
= 11/21
=52.38% or 0.5238
Contribution margin = $21 - $10
= $11
thus, A. 52% and $11 per unit is the answer.
variable cost per unit also means average variable cost.
Answer:
Promotion
Explanation:
A marketing rep must also contemplate where and how his concept is delivered to consumers. This phenomenon is known as product promotion.
This concept refers to the spread of information regarding the product to the targeted buyers with the intent that it would increase the sales.
It also triggers the demand in the customers or creates a need that might not exists before, which would eventually increase the overall sales of the product.
