11.55% is the weighted average cost of capital for these funds
Explanation:
Firm has 76000000 in debt and 100000000 in equity. Thus the proportion of debt =
= 76000000/(76000000 + 100000000)
= 43.18%
and proportion of equity = 1 - 43.18% = 56.82%
Therefore, WACC = 0.4318 * 6.1 + 0.5682 * 15.7
= 11.55%
You can take it out through an ATM machine, or using a debit card.
Answer:
$57,400
Explanation:
The computation of the estimated total manufacturing overhead for the Customizing Department is shown below:
= Total fixed manufacturing overhead cost + Direct labor-hours × Variable manufacturing overhead per direct labor-hour
= $35,000 + 7,000 direct labor hours × $3.20
= $35,000 + $22,400
= $57,400
All other information that is given in the question is ignored.
Answer:
$15 per backpack
Explanation:
The average variable cost per of producing a backpack by using the high low method is shown below:
Variable cost per backpack = (High total cost - low total cost) ÷ (High backpack produced - low backpack produced )
= ($110,000- $87,500) ÷ (4,000 backpack produced - 2,500 backpack produced )
= $22,500 ÷ 1,500 backpack produced
= $15 per backpack
Answer:
Mark-up = 26.83%
Explanation:
<em>Mark-up is the proportion of cost that unit cost that must be achieved as profit.</em>
<em>Return on Investment is the proportion investment that is earned as operating income.</em>
Operating income = ROI × investment = 20%× 540,000=108,000
Profit per unit = total operating income /Number of units
=$108,000/11,500 units
=$9.391 per unit
Mark-up = (Profit per unit ÷unit cost)× 100
Mark- up = $9.391 /35 × 100 =26.83
Mark-up = 26.83%
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