Answer:
R = 8.2803%
Rounded: 8%
Explanation:
Solving our equation:
r = (1/3)(98000/78500) - 1) = 0.08280255
r = 0.08280255
Converting r (decimal) to R a percentage
R = 0.08280255 * 100
= 8.2803%
Hope this helped! :D
Answer:
Financial disadvantage of 138,600
Explanation:
![\left[\begin{array}{cccc}&produce&buy&Differential\\$Purchase&&-447,000&-447,000\\$Avoidable\: Cost&-283,400&0&283,400\\$Unavoidable\: Cost&-114,400&-114,400&0\\$Total Cost&-397,800&-561,400&-163,600\\$additional segment&0&25,000&25,000\\$Net Effect&-397,800&-536,400&-138,600\\\end{array}\right]](https://tex.z-dn.net/?f=%5Cleft%5B%5Cbegin%7Barray%7D%7Bcccc%7D%26produce%26buy%26Differential%5C%5C%24Purchase%26%26-447%2C000%26-447%2C000%5C%5C%24Avoidable%5C%3A%20Cost%26-283%2C400%260%26283%2C400%5C%5C%24Unavoidable%5C%3A%20Cost%26-114%2C400%26-114%2C400%260%5C%5C%24Total%20Cost%26-397%2C800%26-561%2C400%26-163%2C600%5C%5C%24additional%20segment%260%2625%2C000%2625%2C000%5C%5C%24Net%20%20Effect%26-397%2C800%26-536%2C400%26-138%2C600%5C%5C%5Cend%7Barray%7D%5Cright%5D)
The allocate cost and teh depreciation cost will be unavoidable, so should be considered as a cost for the purchase option
Also the inocme from teh additional segment is only considered for the purchase option
<u>The avoidable cost will be:</u>
Direct Materials
Direct Labors
Variable overhead
Supervisor
Thse cost are zero in the purchase escenario
Answer:
c. decrease by $10,000 per year.
Explanation:
The contributing margin of a business is sales revenue less the variable cost to produce the product
Contributing margin refers to the profit that is free to be used by the business to pay fixed costs and reserve as net profit.
In this scenario if the department is discounted the fixed expense will reduce by $40,000
This implies that the net income will increase by $40,000 if the department is discontinued.
If the department is discontinued income from the department will reduce by $50,000. That is -$50,000
Net income= -50,000 + 40,000= -$10,000
Answer:
$ 870,000
Explanation:
Given data:
The funds raised by the cancer society = $ 900,000
The amount that has been collected back = $ 600,000
The amount that is uncollectible = 10% of the remaining amount
i.e 10% of ( $ 900,000 - $ 600,000 ) = $ 30,000
Therefore,
the net amount of revenue the society should recognize during the current year from this pledge drive is calculated as:
= The funds raised by the cancer society - The amount that is uncollectible
or
= $ 900,000 - $ 30,000
or
= $ 870,000
