Charge for a maintenance contract

Assignment Help Financial Accounting
Reference no: EM132419832

Craig Jones owns a computer sales and repair business. He has decided to sell maintenance contracts with new computers that cover all repairs needed within three years of purchase. On average, each new computer needs $100 in repairs and maintenance per year during the first three years it is operated. (The $100 is the customer's cost for maintenance, including parts, labor, and Craig's profit.) How much should Craig charge for a maintenance contract if the interest rate is 13%?

Reference no: EM132419832

Questions Cloud

MN624 Digital Forensic Assignment : MN624 Digital Forensic Assignment Help and Solution, Melbourne Institute of Technology Assessment Writing Service - Digital Forensics: Challenges and approaches
Interest rate on a newly issued a2 public utility bond : What should be the interest rate on a newly issued A2 public utility bond?
Find the market value of the bonds-cox media corporation : Cox Media Corporation pays an 8 percent coupon rate on debentures that are due in 10 years. The current yield to maturity on bonds of similar risk is 6 percent
How much should craig charge for a maintenance contract : How much should Craig charge for a maintenance contract if the interest rate is 13%?
Charge for a maintenance contract : How much should Craig charge for a maintenance contract if the interest rate is 13%?
What is the profit or loss associated with copper : Allocate the joint costs using the relative sales values. With these costs, what is the profit or loss associated with Copper?
Make adjusting entries at july 31 : Make adjusting entries at July 31, assuming the company prepares adjusting entries monthly.
What are the ethical issues in given case : MBA 5410 - What are the ethical issues in this case?Who are the stakeholders in this case?Does Monsanto maintain an ethical cultural
How does the legal structure and capital structure : How does the legal structure and capital structure affect a company's progress in bankruptcy? Can you explain with practical examples please

Reviews

Write a Review

Financial Accounting Questions & Answers

  Adjusting entries for accruals-provide journal entries

Identify two items that may result in adjusting entries for deferrals and provide sample journal entires. Identify two items that may result in adjusting entries for accruals and provide sample journal entires.

  Management authorizes a write-off

At the end of 2013, Morley Co. has accounts receivable of $762,300 and an allowance for doubtful accounts of $26,990. On January 24, 2014, it is learned that the company's receivable from Spears Inc. is not collectible and therefore management author..

  Fabulous fabricators needs to decide how to allocate space

Fabulous Fabricators needs to decide how to allocate space in its production facility this year. It is considering the following contracts

  Illustrate what is the amount of owner equity

Illustrate what is the amount of owner's equity as of July 1 of the current year?

  Boswell company reported

What is Boswell’s break-even point in units

  Weighted-average method in process costing system

The Gasson Company uses the weighted-average method in its process costing system. The company's ending work in process inventory consists of 10,000 units, 100% complete with respect to materials and 70% complete with respect to labor and overhead.

  Prepare the general journal entry to update depreciation

Prepare the general journal entry to update depreciation to July 1, 2009 and prepare the general journal entry to record the disposal of the machine

  Calculate nates net profit using the cash method

James owns an insurance agency. The following selected data are taken from the agency balance sheet and income statement prepared using the accrual method. Calculate Nate's net profit using the cash method for 2014.

  Explain how much cost would the firm anticipate

On the basis of this information, explain how much cost would the firm anticipate at an activity level of 205,000 units?

  Prepare a budget showing the quantities of each type

Materials equal to one-half of the next month's requirements are to be on hand at the end of each month. This requirement was met on January 1, 19A. Prepare a budget showing the quantities of each type of material to be purchased each month for th..

  Discuss the ethical dilemma jack faces

Discuss the ethical dilemma Jack faces. What is the issue? Who are the parties involved? What factors should Jack consider in making his decision?

  Merchandise available for sale and the cost of goods sold

Kinsey Company had the following information: What is the merchandise available for sale and the cost of goods sold?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd