Answer:
$21,370.1071
Explanation:
The calculation for the present value of this perpetuity is as follows:
= Present value five years later + present value at the time of purchase
where,
The present value after five years is
= ($1,000) ÷ (1.04)^5
=$821.9271
Additionally, the present value at the purchase time is
= $821.9271 ÷ 4%
=$20,548.18
Thus, the total present value of the perpetuity is
=$821.9271 + $20,548.18
= $21,370.1071
Answer:
The opportunity cost for Janet to create a pizza amounts to 0.67 gallons of root beer, while for Megan it is 0.71 gallons of root beer.
Janet possesses an absolute advantage in pizza making, and Janet also has a comparative advantage in this activity.
When it comes to trading, Janet will exchange pizza for root beer. The price of pizza can be represented by the amount of root beer in gallons. To ensure both roommates benefit, the highest trade price for pizza is 0.71 gallons of root beer, while the minimum price allowing for mutual benefit is 0.67 gallons of root beer per pizza.
Explanation:
For Janet, the cost to produce one gallon of root beer is 3/2, which equals 1.5 pizzas.
Janet's cost for making a pizza is calculated as 2/3, resulting in 0.67 gallons of root beer.
As for Megan, her cost to produce a gallon of root beer is 7/5, translating to 1.4 pizzas.
Megan's cost of producing a pizza is 5/7, which equals 0.71 gallons of root beer.
Opportunity costs represent the additional expenses or benefits forfeited when electing one action or investment in place of another option. For instance, Janet can create either 1.5 pizzas or 1 gallon of root beer in a span of 3 hours, but she cannot accomplish both simultaneously; she must make a choice between the two options.
Answer:a. ($35,000)
Explanation:The analysis of the financial outcomes for discontinuing product V860 is shown here:
= Sales Revenue - Variable Costs - Avoidable Fixed Manufacturing Expenses - Avoidable Fixed Selling Expenses
= $150,000 - $72,000 - $30,000 - $13,000
= $35,000
This $35,000 represents a financial disadvantage, and fixed costs should not be factored since they are not relevant for decision-making purposes
Therefore, the appropriate option is a
Answer:
A general ledger adjustment should reflect: 1. Debit Bank Fee Expense $45 and Credit Bank Account $45.
Explanation:
The discrepancies between the Cash Book Bank Balance and the Bank Statement Balance often arise due to Unrecorded Items.
The bank's charge of $45 appears in the Bank Statement but was not documented in the Cash Book.
Thus, the appropriate adjustment is to reduce the Cash Book - Bank Balance and acknowledge this expense in the Income statement pertaining to these Bank Charges.
