An inusrcane company pays its agents 40% prrcent commisison om the first years premium and 5% in the second year. If the premiums are 500 bucks a year what is the total commission that will be paid during th two years
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An inusrcane company pays its agents 40% prrcent commisison om the first years premium and 5% in the second year. If the premiums are 500 bucks a year what is the total commission that will be paid during th two years (this is also for a test i have tomorrow so this is study practice)
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- Now assume that it is several years later. The brothers are concerned about the firm’s current credit terms of net 30, which means that contractors buying building products from the firm are not offered a discount and are supposed to pay the full amount in 30 days. Gross sales are now running $1,000,000 a year, and 80% (by dollar volume) of the firm’s paying customers generally pay the full amount on Day 30; the other 20% pay, on average, on Day 40. Of the firm’s gross sales, 2% ends up as bad-debt losses. The brothers are now considering a change in the firm’s credit policy. The change would entail: (1) changing the credit terms to 2/10, net 20, (2) employing stricter credit standards before granting credit, and (3) enforcing collections with greater vigor than in the past. Thus, cash customers and those paying within 10 days would receive a 2% discount, but all others would have to pay the full amount after only 20 days. The brothers believe the discount would both attract additional customers and encourage some existing customers to purchase more from the firm—after all, the discount amounts to a price reduction. Of course, these customers would take the discount and hence would pay in only 10 days. The net expected result is for sales to increase to $1,100,000; for 60% of the paying customers to take the discount and pay on the 10th day; for 30% to pay the full amount on Day 20; for 10% to pay late on Day 30; and for bad-debt losses to fall from 2% to 1% of gross sales. The firm’s operating cost ratio will remain unchanged at 75%, and its cost of carrying receivables will remain unchanged at 12%. To begin the analysis, describe the four variables that make up a firm’s credit policy and explain how each of them affects sales and collections.Markson and Sons leases a copy machine with terms that include a fixed fee each month of $500 plus a charge for each copy made. The company uses the high-low method to analyze costs. If Markson paid $360 for 5,000 copies and $280 for 3,000 copies, how much would Markson pay if it made 7,500 copies?Gear Up Co. pays 65% of its purchases in the month of purchase, 30% in the month after the purchase, and 5% in the second month following the purchase. What are the cash payments if it made the following purchases in 2018?
- Grummet Company is acquiring a new wood lathe with a cash purchase price of $80,000. The Wood Master Industries (the manufacturer) has agreed to accept $23,500 at the end of each of the next 4 years. Based on this deal, how much interest will Grummet pay over the life of the loan? A. $94,000 B. $80,000 C. $23,500 D. $14,000Moonlight Industries just signed a sales contract with a new customer. JK will receive annual payments in the amount of $50,000, $96,000, $123,000, and $138,000 at the end of Years 1 to 4, respectively. What is this contract worth at the end of Year 4 if the firm earns 3.75 percent on its savings? Can the excel and calculator solution be provided?An accountant purchases a T-bill with a face value of $4,000 for $3,955. If the term of the T-bill is 115 days, what is the annual simple interest rate (in percent) earned by the client? Round to the nearest tenth of a percent. (Use 360 days in 1 year.)
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- A) Merchandise is received for $25,000 now and $50,000 in 6 months. If $10,000 is paid within a month, what will be your balance to be paid in the third month if we consider an interest rate of 18% annual compounded monthly? Consider the third month as the focal date. R $ $ 63 655.56 B) A merchant acquires articles for his business for a value of $8,600 paying 30% in cash and the rest with direct financing from the supplier; Two months later he makes a payment of $2,000, agreeing to pay off the debt with a final payment after 6 months. Find the value of the final payment considering that the money is financed at 7%. R $ 4.184,03Jayne Company presently pays its employees at the end of each week. The weekly payroll totals $500,000. If Jayne Company were to extend the pay period so as to pay its employees 1 week later throughout an entire year, the employees would in effect be "lending" the firm how much for the year? And if Jayne company gets a discount loan at a 12 percent interest rate. They borrow $100,000 for one year. What is the effective interest rate?Cowboy Construction buys materials on account from Highes. Highes offers a 2 percent discount for invoices paid within 10 days. Full payment is due within 90 days. But Cowboy Construction routinely pays its invoices on the ninetieth day. If Cowboy’s effective tax rate is 42 percent, what is the cost of capital for accounts payable in percentage? Excel calculation