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Deffense [45]
2 years ago
11

. Fixed costs are costs that remain the same in total dollar amount as the activity base changes. vary with the costs of the act

ivity. are characteristically on the high end. are not considered when planning a budget.
Business
1 answer:
Phoenix [80]2 years ago
8 0

Fixed costs are costs that remain the same in total dollar amount as the activity base changes. vary with the costs of the activity. Read below on fixed costs.

<h3>What are fixed costs?</h3>

Fixed costs are costs that remain the same in total dollar amount as the activity base changes. Cost per unit changes inversely to changes in the activity base. Total cost remains the same regardless of changes in the activity base.

Therefore, the answer is option A. vary with the costs of the activity.

learn more about fixed costs: brainly.com/question/3636923

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Turnbull Co. has a target capital structure of 45% debt, 4% preferred stock, and 51% common equity. It has a before-tax cost of
Katarina [22]

Answer:

By raising additional funds from issuing additional equity common stock ,WAAC increases by 1.07%

Explanation:

WACC=Ke*E/V+Kp*P/V*Kd*D/V*(1-t)

WACC when additional funds is raised from retained earnings:

Ke is the cost of equity is 14.7%

Kd is the cost of debt is  11.1%

Kp is  the cost of preferred stock 12.2%

E=equity weight of 51% 0.51

P= preferred stock weight 4% 0.04

D=debt weight 45% 0.45

V=debt+equity+preferred stock weights

V=0.51+0.04+0.45=1

t is the tax rate at 25% 0.25

WACC=14.7%*0.51/1+12.2%*0.04+11.1%*0.45*(1-0.25)

          =(14.7%*0.51)/1+(12.2%*0.04)+(11.1%*0.45*0.75)

          =11.73%

WACC when additional funds is raised from common equity capital

Ke is the cost of equity is 16.8%

Kd is the cost of debt is  11.1%

Kp is  the cost of preferred stock 12.2%

E=equity weight of 51% 0.51

P= preferred stock weight 4% 0.04

D=debt weight 45% 0.45

V=debt+equity+preferred stock weights

V=0.51+0.04+0.45=1

t is the tax rate at 25% 0.25

WACC=16.8%*0.51/1+12.2%*0.04+11.1%*0.45*(1-0.25)

          =(16.8%*0.51)/1+(12.2%*0.04)+(11.1%*0.45*0.75)

          =12.80%

By raising additional funds from issuing additional equity common stock ,WAAC increases by 1.07% (12.80%-11.73%)

8 0
4 years ago
The corporate charter of Torres Corporation allows the issuance of a maximum of 4,000,000 shares of $1 par value common stock. D
Ratling [72]

Answer: 2,080,000 shares

Explanation:

The question states that 2,080,000 shares were issued at a price of $15 per share so this will be the number of shares issued.

Shares issued are those shares that were actually sold by the company from the number of Authorized shares and quite often they will be less than the number of Authorized shares allowed.

5 0
3 years ago
Newhard Company assigns overhead cost to Jobs on the basis of 125% of direct labor cost. The job cost sheet for Job 313 includes
Ivahew [28]

Answer:

a. Total manufacturing cost $37,000

b. Unit product cost $37

Explanation:

Total Cost = Sum of all manufacturing costs

Total manufacturing cost -

direct materials                                  $10,000

direct labor                                         $12,000

overhead ($12,000×125%)                 $15,000

Total                                                    $37,000

Unit Product Cost = Total Cost / Number of Units

                             =  $37,000/ 1,000 units

                             = $37

8 0
3 years ago
Read 2 more answers
On november 21, civic company received $550 from customers in payment of their accounts. the journal entry to record this transa
liubo4ka [24]

On November 21, Civic Company received $550 from customers in payment of their accounts. The journal entry to record this transaction will include a credit to accounts receivable.

<h3>What is meant by account receivable?</h3>
  • The money clients owe your business for goods or services for which invoices have been issued is known as accounts receivable. On the balance sheet, current assets are listed as the total amount of all accounts receivable, including bills from clients for goods or services on credit.
  • A person who works in accounts payable must ensure that their company receives payments for the goods and services it provides and record these transactions appropriately.
  • Trade accounts receivable notes receivable and other receivables are the three categories into which receivables are typically broken down.

On November 21, Civic Company received $550 from customers in payment of their accounts. The journal entry to record this transaction will include a credit to accounts receivable.

To learn more about accounts receivable, refer to:

brainly.com/question/24848903

#SPJ4

5 0
2 years ago
PCB Corporation manufactures a single product. Monthly production costs incurred in the manufacturing process are shown below fo
Colt1911 [192]

Answer:

Total Variable cost is $9 per unit

Varibale cost of Utilities is $0.5 per unit

Varibale cost of Maintainance $0.3 per unit

Explanation:

First calculate Fixed and Variable cost separately.

Fixed costs = Property taxes + Supervisory Salaries + Depreciation + Fixed utilities cost + Fixed Maintenance costs

Fixed Cost  = $1,280 + 2,304 + $3,072 + $384 + $256 = $7,296

Variable costs to produce 3,840 units = Direct materials + Direct labor + Indirect labor

Variable costs to produce 3,840 units = $9,600 + $19,200 + $5,760 = $34,560

Variable cost per unit = Total Variable cost / Number of units

Variable cost per unit = $34,560 / 3,840 = $9 per unit

Variable cost portion of mixed cost= Total cost – Fixed portion

Utilities

Variable cost  = $2,304 – $384 = $1,920

Variable cost per unit = $1,920 / 3,840 units = $0.5 per unit

Maintainance

Variable cost  = $1,408 – $256 = $1,152

Variable cost per unit = $1,152 / 3,840 units = $0.3 per unit

5 0
4 years ago
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