Answer:
$449,830
Explanation:
A fix Payment for a specified period of time is called annuity. The discounting of these payment on a specified rate is known as present value of annuity.
Don draper will receive total 7 payments in 6 years time.
Formula for Present value of annuity is as follow
PV of annuity = P + P x [ ( 1- ( 1+ r )^-n ) / r ]
P = Payment = $80,000
r = rate of return = 8%
n = number of years = 6 years
PV of annuity = $80,000 + $80,000 x [ ( 1 - ( 1+ 8% )^-6 ) / 8% ]
PV of annuity = $80,000 + $369,830
PV of annuity = $449,830
Answer:
$480,000
Explanation:
Calculation to determine what total relevant costs to make the part internally are
First step is to calculate Relevant cost per unit:
Relevant cost per unit:
Direct materials $6
Direct labor $24
Variable manufacturing overhead $12
Fixed manufacturing overhead ($15 × 0.40) $6
Relevant manufacturing cost $48
Now let determine the Total relevant costs to make the part internally
Total relevant costs to take the part internally=($48 × 10,000)
Total relevant costs to make the part internally = $480,000
Therefore total relevant costs to make the part internally are $480,000
Answer:
Disagree
Explanation:
The decrease in the demand for the apartments caused the decrease in the rent price, not vice versa. When the quantity demanded of a product decreases, the equilibrium price will also decrease.
This situation was probably the result of a leftward shift in the demand curve which resulted in a decrease of both the quantity demanded and the rental price. In my opinion, this shift was probably due to a decrease in the income of people demanding rental apartments. Detroit's largest industry is the car industry, and American car manufacturers are not doing very well lately.
Answer:
Reduce supply. Customers generally reduce their purchases of luxury items when the economy falters.
Explanation:
During the recession, the number of unemployment will rise and the purchasing power that people have will be reduced.
When this happen, the supply of the diamond watches in the market will heavily outnumbered the number of consumers that afford to buy it. (this is applicable to all type of products, not only diamond watches)
Because of this, when expecting a recession in the future, companies tend to reduce the amount of supply to minimize their loss. They can resell it after market has been restabilized.
