1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Brilliant_brown [7]
3 years ago
7

Replace an existing asset: You have a 2000 Nissan that is expected to run for another three years, but you are considering buyin

g a new Hyundai before the Nissan wears out. You will donate the Nissan to Goodwill when you buy the new car. The annual maintenance cost is $1,500 per year for the Nissan and $200 for the Hyundai. The price of your favorite Hyundai model is $18,000, and it is expected to run for 15 years. Your opportunity cost of capital is 3 percent. Ignore taxes. When should you buy the new Hyundai?

Business
1 answer:
bixtya [17]3 years ago
7 0

Answer:

Drive Nissan for three more years then buy a Hyundai.

Explanation:

See the attached picture for further explanation.

You might be interested in
All of the following are methods of bringing your business to the attention of prospective clients. Once your child care busines
AnnyKZ [126]
C word by mouth......
7 0
3 years ago
On January 1, Collins Corporation had 800,000 shares of $10 par value common stock outstanding. On March 31, the company declare
mash [69]

Answer:

Total Stockholders' equity was affected.

Explanation:

Stock dividend refers to distributing shares free of cost among the existing shareholders. Such a dividend does not result in resources flowing out of the entity but merely reassign amounts from retained earnings to other equity accounts. Thus, such a dividend does not affect the total equity of the stockholders. This can be seen through the following entry,

Retained Earnings     $1,800,000 Dr

      Common Stock, at par      $1,200,000 Cr

      Paid in Capital in excess

      of par, Common Stock      $600,000 Cr

The above transaction shows that we just redistributed the reserves by reducing retained earning by the value of stock dividend 1800000 [( 800000*0.15) * $15]  and adding it to the Common Stock 1200000 [(800000*0.15) * 10] and to paid in capital in excess of par 600000 [(800000*0.15) * 5].

6 0
3 years ago
Bernard's firm has set corporate direction to become one of the leaders in each of its significant market segments. It was Berna
Mashutka [201]

Answer:

Sales-Oriented Pricing objective

Explanation:

Sales-oriented pricing objective focuses on increasing sales and gaining a greater market share.

This strategy prioritizes increasing sales over increasing profits, and it can be achieved by cutting costs and reducing prices to attract more customers.

7 0
3 years ago
Each visor requires a total of $4.00 in direct materials that includes an adjustable closure that the company purchases from a s
olasank [31]

Answer:

A. $10.75

B. May $6,288.75

June $4,407.5

Explanation:

A . Calculation to Determine Shadee's budgeted manufacturing cost per visor.

Budgeted direct Material $4.00

Direct labor $3.6

(0.30*$12)

ariable manufacturing overhead is $1.25

Fixed overhead per unit is $1.90

Budgeted manufacturing cost per visor $10.75

Therefore Shadee's budgeted manufacturing cost per visor is $10.75

B. Computation for Shadee's budgeted cost of goods sold for May and June.

May June

Expected sales units 585 410

Minimum cost per unit $10.75 $10.75

Budgeted cost of goods sold for May and June

$6,288.75 $4,407.5

May (585*$10.75=$6,288.75)

June(410*$10.75=$4,407.5)

Therefore the budgeted cost of goods sold for May is $6,288.75 and June is $4,407.5.

3 0
2 years ago
Taylor is negotiating to buy some land. Under the first option, Taylor will give Ella $150,000 and assume her mortgage on the la
Anna11 [10]

Answer:

The cost basis for the land is equal under both options.

Explanation:

If Taylor pays Ella $150,000 in cash and assumes the mortgage of $100,000, the cost basis of the land will be $250,000 (= $150,000 + $100,000). If he decides to pay Ella the full amount of $250,000, that will also be the cost basis of the land.

The only real difference is that if Taylor decides to assume the mortgage, he will need a smaller initial cash flow ($150,000).

8 0
3 years ago
Other questions:
  • The money price of a half gallon of milk a half gallon of milk is ​$ 1.80​, and the relative price of a half gallon of milk a ha
    9·1 answer
  • Fixed costs that relate specifically to one center and are incurred for the sole benefit of that center are Entry field with inc
    13·1 answer
  • A journal entry for a $75 payment for Rent expense was posted as a debit to Salary expense and a credit to Cash. This error will
    5·1 answer
  • With respect to product quality, deming believed that a company should never ________. pay more attention to quality than to pri
    6·1 answer
  • A market researcher wants a large sample size for her survey and decides to stand in the food court of a mall during Christmas s
    15·1 answer
  • For an extra level of security, some smart cards today store ____ data in the card and use that data to authenticate the card's
    15·2 answers
  • How can expansionary and contractionary tax policies be used to manage the economy? Be sure to give your answer in two to three
    7·2 answers
  • A debit balance is the bank statement indicates?
    14·1 answer
  • many companies provide office supplies for their employees use while on the job. imagine that you work for such a company. sever
    10·1 answer
  • prepare the horizontal model for each of the following transactions. a. to record the payment on july 1, assuming that all $27,0
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!