How are credit unions different than banks?

Jane Westerlund owns a picture-framing store, The Caplow Co. The average price she receives for a framed picture is $120. This p

Olegator [25]

Answer:

this would cause total costs to Increase and the break-even quantity to Increase.

Explanation:

Total Cost is the Sum of All Manufacturing and Non-Manufacturing Cost of a product.

Advertising expense before adjustments are at $500. The cost of advertising does not vary with the sales quantities therefore this is a fixed cost.

Therefore an Increase in the advertising expense causes an increase in Total cost figure.

Break even quantity is a function of Fixed Costs divided by Contribution per unit.The break even quantity will definitely change. By increasing the fixed costs (<em>Advertising Expense</em>), the Break even quantity will increase.

5 0

3 years ago

Read 2 more answers

If we were able to invest a Gradient = $100 at the end of each year for 7 years at 6% interest (i.e., So at the end of year 1, $

zavuch27 [327]

Answer:

We can withdraw an equivalent annuity of $ 293.658 each year.

Explanation:

We build a scheduled table to know the future value of the gradient investment

Time Beg Gradient Total Rate Ending

1 $100.00 $100.00 $100.00 0.060 $106.00

2 $106.00 $100.00 $206.00 0.060 $218.36

3 $218.36 $200.00 $418.36 0.060 $443.46

4 $443.46 $300.00 $743.46 0.060 $788.07

5 $788.07 $400.00 $1,188.07 0.060 $1,259.36

6 $1,259.36 $500.00 $1,759.36 0.060 $1,864.92

7 $1,864.92 $600.00 $2,464.92 0.060 $2,612.81

Then, we solve for the equivalent annuity-due:

$PV \div \frac{1-(1+r)^{-time} }{rate}(1+rate) = C\\$

PV 2,613

time 7

rate 0.06

$2612.81 \div \frac{1-(1+0.06)^{-7} }{0.06}(1+0.06) = C\\$

C $ 293.658

Itis annuity due as we will going to retire cash in a 6 year period for seven times. (at each year-end during 6 years thus, annuity-due

1st 2nd 3rd 4th 5th 6th 7th

/-------/-------/-------/-------/-------/-------/-------/

1 2 3 4 5 6 7

3 0

3 years ago

On June 30, 2018, the High Five Surfboard Company had outstanding accounts receivable of $600,000. On July 1, 2018, the company

attashe74 [19]

Answer:

The Journal entry is as follows:

On July 1,

Cash A/c Dr. $439,200

Finance charge Expense A/c Dr. $10,800

To Financing arrangement A/c $450,000

(To record the amount of borrowings)

Workings:

Finance charge expense = ($600,000 × 1.8%)

= $10,800

So, cash account = $450,000 - $10,800

= $439,200

4 0

3 years ago

Megan’s balance sheet shows that on February 7, 2010 she had assets totaling $27,600 and debts totaling $32,500. Which of the fo

balandron [24]

Answer:

Option (C) is correct.

Explanation:

Given that,

Megan’s balance sheet shows:

Total assets = $27,600

Total debts = $32,500

Net worth is the difference between total assets and total liability.

Net worth = Total assets - Total debts

= $27,600 - $32,500

= -$4,900

Therefore,

Megan’s balance sheet shows the negative worth of $4,900.

4 0

4 years ago

The minimum feasible long-run average cost for firms in a perfectly competitive industry is $27 per unit. If every firm in the

Furkat [3]

Answer: Marginal cost is $27 and market price is $27

Explanation:

In the long run, perfectly competitive industries make zero economic profit. This means therefore that Average cost will be the same as the Market price so Market price will be $27.

Firms in a perfectly competitive industry will produce at a rate where Marginal revenue will equal marginal cost in order to maximise profit.

In a perfectly competitive industry, firms are price takers which means that the Market price is also the same as the Marginal revenue. The Market price will therefore be equal to marginal cost which means that Marginal cost will also be $27.

5 0

3 years ago