Answer:
$303,072 - The Question is altered by the Students, so the options given are not correct.
Explanation:
In relevant cost the only cost relevant is the variable cost not the fixed costs. So differential cost would be the difference of the cost of purchasing and the cost of making the product at home, excludin the fixed cost.
Differential cost = Cost of purchasing Less Cost of making at home
Cost of purchasing one unit is $17 which is variable cost. Likewise the cost of making the part at home is $9 which is also 100% variable cost. So by putting values, we have:
Differential cost = 37,884 Units * $17 - 37,884 Units * $9 = $303,072
Answer:
B. $280,000
Explanation:
The capital assets are those assets which are used for the personal purpose, not for the business purpose. The examples of capital assets include personal property, stocks, bonds, clothing, dwelling, etc.
It excludes that property which is used for trade or business purpose like - limousine.
In the given situation, the capital asset would be $280,000 as it owns for personal residence and furnishings.
Answer:
The equation for that satisfies the number of bananas and apples you can buy is;
x+2 y≤100, where 0≤x≤100, and 0≤y≤50
x=number of apples that can be bought
y=number of bananas that can be bough
Explanation:
A budget is the act of providing a particular amount of money to be used for a given activity. In our case, you have set aside $100. This means that whatever you buy should not exceed this amount, meaning the maximum amount you can spend is limited to this value. The equation below can be used to draw the graph for the scenario above;
(A×Na)+(B×Nb)≤I
where;
A=apple cost per unit
Na=number of apples
B=banana cost per unit
Nb=number of bananas
I=available income
In our case;
A=$1
Na=unknown=x
B=$2
Nb=unknown=y
I=$100
replacing;
(1×x)+(2×y)≤100
x+2 y≤100
We can assume values of x and y that satisfy this limitation as follows;
x=0 y≤50
y=0, x≤100
0≤x≤100
0≤y≤50
The equation for that satisfies the number of bananas and apples you can buy is;
x+2 y≤100, where 0≤x≤100, and 0≤y≤50
x=number of apples that can be bought
y=number of bananas that can be bought
Answer:
a. PV = $10,299.02
b. PV = $36,226.63
c. PV = $14,797.46
d. PV = $24,794.88
Explanation:
To solve this question, we use present value formula
PV = C/(1+r)^n
Where PV = Present value of a lump sum
C = Future amount to be discounted
r = Interest rate
n = Number of years
a. PV = C/(1+r)^n
C = $25,500
r = 12%
n = 8
PV = $25,500 /(1+12%)^8
PV = $25,500 /(1+0.12)^8
PV = $25,500 /(1.12)^8
PV = $25,500 /2.475963176
PV = $10,299.02231
PV = $10,299.02
b. PV = C/(1+r)^n
C = $58,000
r = 4%
n = 12
PV = $58,000 /(1+4%)^12
PV = $58,000 /(1+0.04)^12
PV = $58,000 /(1.04)^12
PV = $58,000 /1.601032219
PV = $36,226.62888
PV = $36,226.63
c. PV = C/(1+r)^n
C = $25,000
r = 6%
n = 9
PV = $25,000 /(1+6%)^9
PV = $25,000 /(1+0.06)^9
PV = $25,000 /(1.06)^9
PV = $25,000 /1.689478959
PV = $14,797.46159
PV = $14,797.46
c. PV = C/(1+r)^n
C = $35,000
r = 9%
n = 4
PV = $35,000 /(1+9%)^4
PV = $35,000 /(1+0.09)^4
PV = $35,000 /(1.09)^4
PV = $35,000 /1.41158161
PV = $24,794.88239
PV = $24,794.88