Answer:
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Explanation:
Option 'C' is correct
<u>Explanation:</u>
Present value of an ordinary annuity of $1
The present value of an annuity is the current value of future payments from an annuity, given a specified rate of return or discount rate.
The future estimation of cash is determined by utilizing a rebate rate. The markdown rate alludes to a financing cost or an accepted pace of profit for different speculations. The littlest markdown rate utilized in these figurings is the hazard free pace of return. U.S. Treasury bonds are commonly viewed as the nearest thing to a hazard-free venture, so their arrival is regularly utilized for this reason.
Answer:
<u>The target cost per iron= $83.25</u>
Explanation:
Profit Required = Required Investment * required rate of return
= $ 3,500,000*15%
= $ 525,000
Sales= 300000*85=$25,500,000.00
Less: profit required=$525,000.00
Cost= Sales- Profit
Cost=24,975,000.00
Per Unit Target Cost = Total Cost / Total Units
= $ 24,975,000/ 300,000
= $ 83.25
Answer:
$96,000
Explanation:
Total cash received during the period = beginning cash + cash received - ending cash
$38,000 + $74,000 - $16,000 = $96,000
I hope my answer helps you
Answer: c. $100 favorable fixed operating cost variance
Explanation:
Cost Variance is a way of measuring the efficiency of a Company or segment in terms of how well they are managing resources and keeping with the budget.
It is calculated by subtracting the Actual balance from the Budgeted balance.
If the result is negative it is called UNFAVORABLE. If it is positive on the other hand it'll be labeled FAVORABLE.
Option C is correct because,
Budgeted balance of Fixed Cost is 500.
Actual balance is 400.
Fixed Operating Cost Variance = 500 - 400
= $100
$100 is positive so it is $100 FAVORABLE.
