Stand alone principle
Explanation:
The principle that an organization must determine whether to undertake a project on the basis of the results of similar projects with the same risk.
Take for example: independent profit, independent risk.
It is possible to measure the isolated income of every individual business unit or section, then combine them together, to calculate the total profit of the whole organization.
When measuring self-employment, values will only be included because they are generated directly from the business of the company segment.
Answer:
$ 6.56
Explanation:
Sales price per unit = $6
Sales price for 1000 units:
= $6 × 1000 units
= $6,000
Contribution = Sales - Variable Cost
= $6,000 - ($1.50 per unit × 1,000 units)
= $6,000 - $1,500
= $4,500
Operating Cost = Contribution - Fixed cost
= $4,500 - $1,800
= $2,700
For further processing:
Variable Cost = $ 1.70 per unit
Variable cost for 1000 units:
= 1000 × 1.70
= $1,700
Fixed Cost = $1,800 + 20% × $1,800
= $1,800 + $360
= $2,160
Let the sale price per unit be "x"
Operating Income = Sales - Variable Cost - Fixed Cost
2,700 = (1000 units × x) - $1,700 - $2,160
2,700 = 1000x - $3,860
1000x = 6,560
x = $6.56
Answer: $8
Explanation:
Total loan is $3,000
Monthly instalments of $258
Tenor of 12 months
Total interest paid on loan = $258 x 12= $3,096
Interest = $3,096 - $3,000 = $96
Apr = $96/$3000= 0.032
= 0.032 x 100
= 3.2% annual rate
= 3000 x 3.2%
= 96/12 = $8
Answer:
d. 4 years.
Explanation:
The payback period is the length of time that it takes for the future cash flows to equal the amount invested in a project. It takes 4 years to get $800,000 for Natal Technologies product.
