Using the direct write-off approach for bad debts, this write-off will not impact the company's net income, nor will it affect total assets.
Response:
$22,419,192.19
Detailed explanation:
Utilizing an Excel sheet, I calculated the future payments and their present worth. If the annual payments rise by $450,000 each year, then the second payment will amount to $1.9 million, not $1.7 million.
Year Payment
0 $1,000,000
1 $1,450,000
2 $1,900,000
3 $2,350,000
4 $2,800,000
5 $3,250,000
6 $3,700,000
7 $4,150,000
8 $4,600,000
9 $5,050,000
10 $5,500,000
Present worth = $22,419,192.19
Answer:
Total cost = Sum of ordering costs + Sum of holding costs
Total cost = DCo + QH
Q 2
Where
D = Annual demand
Co = Cost of ordering per order
Q = EOQ
H = Cost of holding per item annually
D = 40,000 units
Co = $48
H = 18% x $8.00 = $1.44
EOQ = √(2DCo)/H
EOQ = √(2 x 40,000 x $48)/$1.44
EOQ = 1,633 units
Explanation:
EOQ is derived by multiplying two times the annual demand and ordering cost, which is divided by holding cost per item on an annual basis. The annual holding cost is determined as the product of the holding rate and unit cost.
Volunteers tasked with serving alcohol at an event must
1) first, they must be of legal age to serve alcohol at any function.
2) Volunteers need to comply with all rules and regulations regarding alcoholic beverages in the state where the event occurs; for instance, some places may require the volunteer to obtain a one-time permit for serving alcohol.
3) Volunteers should recognize signs of intoxication and refuse service to anyone visibly intoxicated in a professional manner.
4) It's important for volunteers to monitor ages of guests. It can be challenging to request ID, but if uncertain, it's wise to check IDs before serving alcohol, and to consult management or a superior if necessary.
5) Crucially, volunteers must not serve alcohol to minors, as this could lead to legal consequences.
The mean is represented as μ = 58 and the standard deviation σ = 5. With given values of x₁ = 48.5 and x₂ = 60, we compute t-values through the formula t = (x₂ - μ) / σ, which leads to t = (60 - 58) / 5 = 0.4, yielding an area of 0.1554 from the normal distribution curve. Similarly, for the lower value, t is computed as (μ - x₁)/ σ, resulting in t = (58 - 48.5) / 5 = 1.9 with an area of 0.4713. Totaling these, the total area under the curve is 0.4713 + 0.1554 equating to 0.6267 or 62.67%.
