Answer:
tank tops, and to some extent, wages paid to the other yoga instructors
Explanation:
Variable costs are costs that change as the level of activity in a business or production set-up changes. They differ from fixed costs which remain constant irrespective of the change in the level of activity.
For Sonia's yoga studio, variable costs will change as the number of students taking the yoga classes and those buying yoga clothing change. Accordingly, the identified costs for Sonia will react as follows to the change in the level of activity (number of customers and students).
- The cost of tank tops: as customers buying yoga clothing increases, the cost spent on tank tops will necessarily increase.
- Wages paid to the other yoga instructors: as more students enroll for yoga classes, Sonia, may increase the number of students in each class to an extent. However, if the number of students continue to increase beyond the limit for each class, Sonia may need to increase the number of classes and employ more instructors (or increase the number of hours for the current instructors), thus leading to an increase in wages. Thus, wages, though fixed in the short term, becomes variable when activity increases significantly.
- Lease on the studio space: lease will remain fixed since the space occupied as the yoga studio is the same.
- Insurance on the studio: the insurance cost on the studio will equally remain fixed since it will be a percentage of the value of the studio.
Therefore, the cost of the tank tops and the wages paid to the other yoga instructors (to some extent) are variable costs.
Answer:
a. $29,500
b. $28,100
c. $12,000
d. $16,100
Explanation:
The computation is shown below:
a. Gross income
= Salary + interest income
= $28,000 + $1,500
= $29,500
b. Adjusted gross income
= Gross income - deductions for adjusted gross income
= 29,500 - $1,400
= $28,100
c. The standard deduction or itemized deduction for the year 2018 is $12,000
d. Taxable income
= Adjusted gross income - standardized deductions
= $28,100 - $12,000
= $16,100
Answer and Explanation:
The computation is shown below:
As we know that
Monthly payment of a loan is given by
P = L [r(1 + r)^n] ÷ [(1 + r)^n - 1]
where,
P = Monthly payment = ?
r = Interst rate = 0.1 ÷ 12 = 0.00833
n = Term = 15 × 12 = 180
L = Loan amount = 900000
Now
P = $900,000 [0.00833(1 + 0.00833)^180] ÷ [(1 + 0.00833)^180 - 1]
= $9671.4461
Now
The Monthly payment for 30-year loan
P = $900,000[0.00833(1 + 0.00833)^360] ÷ [(1 + 0.00833)^360 - 1]
= $7898.1441
So,
Difference is
= $9671.4461 - $7,898.1441
= $1,773.3019
b.
Now
Total payment for 30-year loan is
= $7,898.1441 × 180
= $2,843,331.8871
And,
Total payment for 15-year loan is
= $9,671.4461 × 360
= $1,740,860.2907
So,
Difference is
= $2,843,331.8871 - $1,740,860.2907
= $1,102,471.60
i.e. option c
<span>The annuity payout option that allows the policyowner to choose a pre-determined number of benefit payments is known as an Annuity Certain. Which is a financial instrument that provides a stream of payments, for a predetermined number of years. If the annuitant dies before the payment term ends, an annuity certain will continue a stream of payments remitted to the annuitant's beneficiary or estate.</span>
<span>Brian should create a monthly budget using the income from each month. He should multiply his weekly income in a given month by four, to account for four weeks. This should provide him with a reasonable estimate of what his income will be for the month. Since his income varies depending on the month, he should make an individual budget for each month to achieve better accuracy.</span>
