You are in the market for a new refrigerator for your company’s lounge, and you have narrowed the search down to two models. The energy-efficient model sells for $1,700 and will save you $45 in electricity costs at the end of each of the next five years. The standard model has features similar to the energy-efficient model but provides no future saving in electricity costs. It is priced at only $1,500
Answers
Answer:
It is better to buy an energy efficient model for $ 1700.
Explanation:
It is better to buy an energy efficient model for $ 1700 because at the end of five years its costs will be less than $ 1500. It saves $ 45 each year and that would save $ 45*5 = $ 225 at the end of five years. That would result in low costs as $ 1700- $ 225= $ 1475 which is less than $ 1500.
Buying $1500 is not a smart choice because then it would add up to expenses . Expenses for $ 45 each year would result in $225 in five years that would add up to be $ 1725 which is higher than $ 1700.
Related Questions
A contingent deferred sales charge is commonly called a ____.
Analysts estimate the cost of debt capital for Abbott Laboratories (NYSE: ABT) is 3.0% and that its cost of equity capital is 5.0%. Assume that ABT's statutory tax rate is 37%, the risk-free rate is 2.5%, the market risk premium is 5.0%, the ABT market price is $65.60 per common share, and its dividends are $0.88 per common share. (a) Compute ABT's average pretax borrowing rate and its market beta. (Round your answers to one decimal place.) Average borrowing rate = Answer 1.3 % Market beta =
TB MC Qu. 3-209 Chavez Corporation reported the ... Chavez Corporation reported the following data for the month of July: Inventories: Beginning Ending Raw materials $ 41,000 $ 37,000 Work in process $ 23,000 $ 31,000 Finished goods $ 39,000 $ 54,000 Additional information: Raw materials purchases $ 73,000 Direct labor cost $ 98,000 Manufacturing overhead cost incurred $ 66,000 Indirect materials included in manufacturing overhead cost incurred $ 10,800 Manufacturing overhead cost applied to Work in Process $ 65,000 Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold. The cost of goods manufactured for July is:
During 2016, Ayayai Corporation spent $144,000 in research and development costs. As a result, a new product called the New Age Piano was patented. The patent was obtained on October 1, 2016, and had a legal life of 20 years and a useful life of 10 years. Legal costs of $17,400 related to the patent were incurred as of October 1, 2016. Prepare all journal entries required in 2016 and 2017 as a result of the transactions above. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Answers
Answer:
In a closed economy, public saving is the amount of
d. tax revenue that the government has left after paying for its spending.
Explanation:
Public saving or budget surplus in a closed economy describes the excess of government revenue (obtained through taxation of individuals and businesses in the economy) and government expenditures on goods and services. In an open economy, transfers are deducted before arriving at the public saving. In all economies, the addition of private (individual and business) and public savings result to national investments.
Answers
Answer: The Economic order quantity(EOQ) is 74 boxes.
Explanation:
Given weekly demand (d)= 4 boxes
Annual demand (D) = 452 = 208 boxes
Ordering cost S = $5
Holding cost H = $0.347
Standard deviation () = 0.50
Lead time (L) = 2 weeks
∴ Economic order quantity (EOQ) Q is as follow :
Q =
Q =
Q = 77.42 or 74
The Economic order quantity(EOQ) is 74 boxes.
Answers
Answer:
The quarter has 3 months so all 15 weeks shall have following taxes:
Employee Wages Exempt under FUTA or SUTA
Employee 1
Wages = 15 week x 900 = 13.500
Exempt under FUTA or SUTA = 13,500 - 7,000 = 6.500
Employee 2
Wages = 15 week x 1200 = 18.000
Exempt under FUTA or SUTA = 18.000 - 7,000= 11000
From the above table.
The JM pays employee 1: 900 and employee 2: 1,200. For 15 weeks they were paid,
Employee I is paid, 900 x 15 weeks
= 13,500
Employee 2 is paid, 1200 x 15 weeks
= I 8,000
For employee 1,
= 13,500 - 7,000
Here, SUTA tax is 5.4% on the first 7,000 the employer pays an employee = 6500
For employee 2,
=18,000 - 7000
Here, the SUTA tax is 5.4% on the first 7000 the employer pays an employee =11000
The taxable wages are obtained by deducting.
= (13,500 +18000) - (6,500 +11,000)
= 31500 - 17500
= 14000
The SUTA and FUTA taxes that JM pays at the end of quarter 1 and 2 is, SUTA,
0.057 x 14,000 = $798
FUTA.
0.008 x 14000
= $112
Hence. The SUTA and FUTA taxes paid are $798 and $112 respectively.
Final answer:
Jean Michaud will pay a state unemployment tax of $1,556.10 and a federal unemployment tax of $163.80 per quarter for his two employees.
Explanation:
The question pertains to calculating the unemployment taxes that Jean Michaud will have to pay for his two employees at a state rate of 5.7% and federal rate of 0.6%. Firstly, we calculate the total wages paid to both employees per quarter. One quarter comprises 13 weeks, therefore the total wages paid per quarter would be ($900+$1200) * 13 = $27,300.
Next, we calculate the unemployment taxes. The state unemployment tax would be $27,300 * 5.7% = $1,556.10 and the federal unemployment tax would be $27,300 * 0.6% = $163.80.
Therefore, the state and federal unemployment taxes Jean will pay at the end of quarters 1 and 2 are respectively $1,556.10 and $163.80. Note, these calculations assume that these are the only two employees and their wages are constant throughout these quarters.
Learn more about Unemployment Taxes here:
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Answers
Answer:
Function
Explanation:
Functional departmentalisation is when staff who perform similar functions are put in the same department.
Examples of functional departmentalisation includes- marketing department, production department, finance department, human resources department.
Advantages of functional departmentalisation include:
1. It makes coordination of activities easier
2. It enhances supervision of staff
3. It enhances specialisation.
Functional departmentalisation can lead to overspecialisation and the inability of managers to perform in other departments other than their primary departments.
Other types of departmentalisation are :
1. Customer departmentalisation
2. Geographic departmentalisation
3. Process departmentalisation
4. Product departmentalisation
Answers
Answer:
Please see attachment
Explanation:
Please see attachment
b. $360,000.
c. $72,000.
d. $48,000.
Answers
Answer:
b. $360,000.
Explanation:
Data provided in the question
Purchase value of the patent = $720,000
At the time of purchase, the patent life is 15 years
And, the useful life of the patent is 10 years
So, the amortization expense recorded value is
= $720,000 ÷ 10 years × 5 years
= $360,000
The five years is counted from the year 2006 to the year 2011