a) The finance charge totals $1,100. b) The APR stands at 9.75%. The amount needing to be financed comes to 11,000 - 4,000 = $7,000, while the total repayment equals 225 x 36 = $8,100. Thus, the finance charge is derived from the total repayment minus the financed amount, yielding $1,100. For part b), we apply the present value formula for annuities to determine the monthly interest rate i: Amount needing financing = (monthly installment x i) / [1 - (1+i)^-36], equating to 7,000 = (225/i) x [1 - (1+i)^-36], giving us i = 0.811%, which translates to APR = 12 x i = 9.732%.
Answer: $1,651
Explanation:
The sole cost associated with Internal failure is the expense for fixing the dog beds prior to sale, totaling $1,651.
The remaining costs fall into the following categories:
- Repairs for dog beds under warranty - External failure cost Seamstress training. -
- Prevention cost Wages of part-time inspector of products - Appraisal cost
- The cost of replacements provided to customers for defective dog beds - External failure cost
- Product liability insurance - External failure cost
- Inspection of sewing machines during routine maintenance - Appraisal cost Inspection of fabric and thread for defects -
- Appraisal cost
Answer:
I'm not entirely sure, maybe ccccccc, but what’s your take on this?
The gross profit method of inventory valuation is invalid under the circumstance where the gross margin percentage experiences significant changes throughout the year.
