Which of the following is not a product cost under variable costing?

A series of monthly cash flows is deposited into an account that earns 12% nominal interest compounded monthly. Each monthly dep

nirvana33 [79]

Answer:

The amount left in the account after last withdrawal is $61,945

Explanation:

The first monthly deposit occurred on June 1, 2008 and the last monthly deposit will be on January 1, 2015 = 80 deposit

Monthly deposit = 2,100

Interest rate = 12% / 1% per month

Firstly, we calculate the future worth of the monthly deposit

FW = A(F/A, i, n)

A = 2,100, i = 1%, n= 80

FW = $2100*[(1+0.01)^80 - 1 / 0.01]

FW = $2100*[2.216715 - 1 / 0.01]

FW = $2100*(121.671)

FW = $255,509.10

We calculate the effective interest rate

i(effective) = (1 + i nominal monthly interest rate)^n - 1

i `%, n = 3(no of months in quarter)

i (effective) = (1+0.01)^3 - 1

i (effective) = (1.01)^3 - 1

i (effective) = 1.030301 - 1

i (effective) = 0.030301

i (effective) = 3.0301%

The effective quarterly interest rate is 3.0301%

We calculate the future worth of the quarterly drawings

FW = A[(1+i)^n - 1 / i]

A = 5,000(drawing), i = 3.0301%, n = 26(number of drawings)

FW = 5,000*[(1+0.030301)^26 - 1 / 0.030301]

FW = 5,000*[2.17303717 - 1 / 0.030301]

FW = 5,000*(38.71282)

FW = $193,564.10

The future worth of the quarterly withdrawal is $193,564.10

We calculate the amount left in the account after last withdrawal

Amount left in account = FW(monthly deposits) - FW(quarterly drawings)

Amount left in account = $255,509.10 - $193,564.10

Amount left in account = $61,945

Thus, the amount left in the account after last withdrawal is $61,945

6 0

3 years ago

Walter used to work as a high school teacher for $40,000 per year but quit in order to start his own painting business. to inves

LekaFEV [45]

d. tyler says his profit is $34,100, and greg says he lost $6,500.

Accounting profit is simply revenues minus explicit (direct) costs whereas economic profit factors in opportunity costs and explicit costs.

7 0

3 years ago

Read 2 more answers

David owns a footwear chain. His stores attract many customers because they sell various footwear brands. Thus, David has entere

Sergeu [11.5K]

Answer:

B. trademark franchise

Explanation:

-Business format franchise is when the franchisee gets a business with the name and trademark of the franchisor and has to follow the guidelines established, for example, a restaurant's franchise.

-Trademark franchise is when the franchisee gets the permission to distribute the product but uses its business format.

-Manufacturing franchise involves the permission to produce a product to sell it to the customer or retailers.

-Management franchise requires that the owner supervises the operations but he/she doesn't have to be in the daily activities. The franchisee should be someone with management experience to handle the business successfully.

According to this, the answer is that the franchise model that David's business follow is trademark franchise because he gets the manufacturers permission to sell their products on his own footwear chain.

4 0

3 years ago

The study of how people choose to use scarce resources to satisfy their wants and needs

NeTakaya

Answer:

Economics

Explanation:

Economics is the study of the activities that individuals and society undertake to satisfy their unlimited wants using scarce resources. Economics involves analysis of the production of goods and services, their distribution and consumption in a country. It involves the study of how individuals, firms, and the government allocates scarce resources to meet the need of society.

Economics is categorized in microeconomics and macroeconomics. Microeconomics concentrates on the key economic indicators such as demand, supply, and income and how they affect an individual, firm, or product. Macroeconomics studies the economic conditions in a country as a whole. It is concerned with issues such as inflation, Unemployment rate, and GDP

5 0

3 years ago

John would like to move from the city into the suburbs and has been saving up a large down payment for a home. Which is the most

Hoochie [10]

I believe the answer is: the most cost efficient is D.Break his lease once he has bought the perfect home.

Breaking the lease on current apartment will cost john a small amount of money depending on the agreement he made with his landlord as a form of compensation. But the amount of compensation would definitely be lower compared to waiting to pay up until his apartment lease is over.

3 0

4 years ago