Answer:
Effect on income= $9,000 increase
Explanation:
Giving the following information:
Fashion:
Contribution margin= 20,000
Fixed expenses= 40,000
Operating income (loss)= (20,000)
$29,000 of fixed costs will be eliminated by discontinuing the Fashion line.
<u>We need to determine the effect on income if the Fashion line is discontinued.</u>
Effect on income= avoidable fixed costs + operating income
Effect on income= 29,000 - 20,000= $9,000 increase
Answer:
$84.93
Explanation:
Future value in year 4 =
PV x ( 1 + r)^n
PV = present value = $500
r = 4%
n = 4
$500(1.04)^4 = $584.93
Interest rate = future value - amount invested = $584.93 - $500 = $84.93
No enough information added
All you have to do is substitute the y values to the equation to solve the corresponding c values which stands for the consumption levels. To illustrate the solution,
when y = 100,
C = <span>120+0.65(100)
C = 185
</span>when y = 120,
C = 120+0.65(120)
C = 198
when y = 125,
C = 120+0.65(100)
C = 201.25
And so on and so forth. The answers would be:
y C
100 185
120 198
125 201.25
140 211
80 172
115 194.75
145 214.25
150 217.5
166 227.9
200 250
Answer:
The annual cash flow using the gross book value method is $18,000
Explanation:
In order to calculate the annual cash flow using the gross book value method we would have to calculate the following formula:
annual cash flow=( value of new machine*ROI)/100
Value of the new machine=$120,000
ROI=15%
annual cash flow= ($120,000* 15%)/100 =
annual cash flow=$18,000
The annual cash flow using the gross book value method is $18,000