Answer:
c. $455.75
Explanation:
The calculations for the quarterly payments are as follows:
= Remaining balance ÷ PVIFA factor for 2.5% over 12 years
Here,
Remaining balance is
= $5,500 - $5,500 × 15%
= $5,500 - $825
= $4,675
And the PVIFA factor for 2.5% across 12 years is 10.2578.
Refer to the PVIFA table.
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= $4,675 ÷ 10.2578
= $455.75
Considering quarterly payments, the rate is divided by four and the time frame becomes four times as long.
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Answer:
In addressing the relevant response, it is inferred that units are measured in thousands for the request.
Thus, the complete commitment would be:
Sales = 49950
Variable Costs = 10500
Variable Selling Expenses = 18250
Contribution Margin = 21200
Considering the client's insistence on maintaining the commitment at a specific level, this would not benefit the organization as it would not yield the same level of $ 21200 as the commitment, especially since an additional $ 5000 would be required for the custom discharge despite eliminating selling costs; thus the revised figures would be:
Sales = 23320
Variable Costs = 10500
Variable Selling Expenses = 0
Contribution Margin = 12820
Part 1: Accounting concerns:
- This situation would create a bookkeeping challenge to report sales at a price lower than what is charged to other clients.
- Accepting the order would lead to an accounting deficit.
Ethical considerations:
- Other clients might be dissatisfied as they would be charged a higher rate for similar services.
- Furthermore, employees may also feel undervalued as the overtime expenses may not compensate for the extra time spent with the family
Answer:
The result is $1000.
Explanation:
Fixed costs are defined as expenses that remain unchanged regardless of the services provided or goods produced.
Following this definition, we can determine that the price of $16 per meal and the $4 ingredient costs are not considered fixed costs. Other expenses like lighting, heating, and fuel fluctuate according to utilization and therefore are variable.
However, the other costs mentioned in the query can be classified as fixed costs since they do not vary with the number of customers or the quantity of food prepared.
Thus, the weekly fixed costs for Bella Capri amount to $250 + $150 + $600 = $1000.
I hope this clarifies your question.
Explanation provided below.