Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

QUESTION 32 John is buying a motorhome. He has the following options: Option 1: Purchasing the motorhome for $62,880 from Honest Susie. Under this deal

image text in transcribed
image text in transcribed
QUESTION 32 John is buying a motorhome. He has the following options: Option 1: Purchasing the motorhome for $62,880 from Honest Susie. Under this deal he would pay 10% down and making 60 equal monthly which would include interest at 6%. Not being complete sure of the trustworthiness of Susie, he called the bank and, indeed, 6% was the going rate on such purchases. Option 2: Dealing Dave has offered the bus of $75,000. Under this deal, he would pay no money down and annual interest payments of 2%. Then at the end of the fifth year, he would pay the $75,000 Option 3: Mostly Honest Bill would sell him the bus to $72,000. Under this deal he would put no money down and pay the 72,000 in 48 equal monthly payments that include interest at 3% What would be the monthly payments under Mostly Honest Bill's deal? A $ 2,849.60 B. $4,600.63 C. $ 1,593.67 D. $ 1,690.92 One of the listed choices QUESTION 54 Jetson's Dynamics makes scooters. The company has three models of scooters, the Astro, the Elroy and the Rosie. The controller has prepared the following estimates for next year. (All projections are on a per scooter basis) Astro Elroy Rosie Selling Price Variable Costs $150 60 $200 100 $300 180 Sales Mix 50% 40% 10% Estimated Sales are $ 60,000,000 Estimated fixed costs are $ 18,000,000 Jetson believes they can increase the sales of Elroy by 5,000 units by spending $20,000 on additional advertising. If they do this and the sales do increase as planned, what will be the effect on profits? O A. Profits will increase by $ 250,000 B. Profits will decrease by $ 406,778 C. Profits will increase by $400,000 D. none of the listed choices E. Profits will increase by $ 480,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions