Answer:
PV of 1st option = $185,015.50
PV of 2nd option = $192,683.78
Explanation:
Computing the present value of the monthly payments, we use the formula
Where PV = present value of the monthly payments
A = monthly salary
r = monthly interest rate = 6%/12 = 0.5% = 0.005
n = number of months = 24 months
PV of the 1st option, $8,200 monthly for the next 2 year
= $185,015.50.
PV of the 2ns option, $6,900 monthly + $37,000 signing bonus
= $155,683.78 + $37,000 = $192,683.78.
Answer:
Cost of goods sold = $960,839
Explanation:
Preparing cost of goods sold budget:
Number of units to be sold = 20,000 - 675 = 19,325
As for the information provided:
Direct Materials = $14 19,325 = $270,550
Direct Labor hours = 1.9 19,325 = 36,717.5
Direct Labor Cost = $16 36,717.5 = $587,480
Variable overhead = $1.20 36,717.5 = $44,061
Fixed overhead = $1.60 36,717.50 = $58,748
Therefore, cost of goods sold = $960,839.
Answer:
attached diagrams
Explanation:
As the freeze decrease teh output of coffee the supply decreased heavily. This make the price of coffee go up which decreased demand. This makes consumer move to substitute goods like tea making increase their demand. This ended with a greater price of both, coffee and tea.
