Trek Holidays Company signed a 9%, 10-year note for $154,000. The company paid an installment of $2,900 for the first month. What portion of the first monthly payment is principal? (Round your answer to the nearest whole number.)
A) $1,745
B) $4,645
C) $1,540
D) $15,733
A .Interest expense for 1 month ($154,000 x 9%) x (1/12 ) $1,155
Total payment 2,900
Principal amount ($2,900 - $1,155 ) $1,745
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Elk Manufacturing has budgeted the following amounts for its next fiscal year:
Total fixed expenses $425,000 Selling price per unit $80 Variable expenses per unit $20 To maintain the original breakeven sales in units if fixed expenses were to increase by 20%, the selling price per unit would have to be A) increased by 65.00%. B) increased by 15.00%. C) decreased by 15.00%. D) decreased by 65.00%.