Answer:
Effect on income= 7,500 increase
Explanation:
Giving the following information:
Variable costs are $0.50 per unit.
Current monthly sales are 183,000 units.
Heaven Company has contacted Marx Company about purchasing 15,000 units at $1.00 each.
Because it is a special offer and there is unused capacity, we will not take into account the fixed costs.
Sales= 15,000*1= 15,000
Variable cost= 15,000*0.5= (7,500)
Effect on income= 7,500 increase
Answer:
$23.6 per share
Explanation:
Given that,
Total common equity = $5,500,000
Shares outstanding = 250,000
Net income = $525,000
Dividends paid out = $125,000
Total value at the end:
= Total common equity + Net income - Dividends paid out
= $5,500,000 + $525,000 - $125,000
= $5,900,000
Therefore,
Book value per share at 2014 year end:
= Total value at the end ÷ No. of shares outstanding
= $5,900,000 ÷ 250,000
= $23.6 per share
<u>Answer:</u> The rate of interest per year is 18.49 %.
<u>Explanation:</u>
To calculate the rate of interest, we use the equation:
where,
Interest paid = $ 53.95
Amount borrowed = $ 700
Rate of interest = ?
Time = 5 months = 
(Conversion factor: 1 yr = 12 months)
Putting values in above equation, we get:
Hence, the rate of interest per year is 18.49 %.
