Answer:
The Annual payment to be made is $445,327
Explanation:
The computation of the annual payment is shown below;
As we know that
The Present value of assets = Annual payment to be made × Present value annuity factor (i%,n)
$2,400,000 = Annual payment to be made × Present value annuity factor (7%,7)
$2,400,000 = Annual payment to be made × 5.3893
So,
The Annual payment to be made is $445,327
Answer: variable budget
Explanation: In simple words, variable budget refers to the budget statement which shows how much different costs would vary if the level of activity as per standards set increases or decreases.
These are also called flexible budget and are made on the basis of current level of output. These budgets provides flexibility to the management with respect to both best case and worst case scenarios.
From the above we can conclude that the correct answer is variable budget.
Answer:
The basic earnings per share for the present year is $7.36 per share
Explanation:
The basic earnings per share for the current year of Comma is computed as:
= (Net Income - preferred stock) / Outstanding shares
where
Net Income is $200,000
Preferred stock is computed as:
= Shares × 10% × Price × 10%
= 8,000 × 10% × $20
= 800 × $20
= $16,000
Outstanding shares - 25,000
Putting the values above:
= ($200,000 - $16,000) / 25,000
= $ 184,000 / 25,000 shares
= $7.36 per common share
Answer:
The correct answer is option a.
Explanation:
An interior decorator has moved his business from Los Angeles to St. Paul, Minnesota because his spouse's company transferred her to St. Paul.
The decorator is distressed because the customers in his target market have, in his words, "banal and bourgeois taste."
The customers in St. Paul have a different taste from the customers that he catered to in Los Angeles. The consumer tastes and preferences may differ from place to place according to the climatic conditions, social status, cultures, etc.
The problem with the decorator is that he does not understands that customer needs are not right or wrong, good or bad. It is not right or wrong if the customers in Minnesota have a different preference from customers in Los Angeles.