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1 year ago

The cost to manufacture shoes decreases. Which statement describes the expected outcome?

1 answer:

4 0

The statement that describes the expected outcome is: c. Supply of the shoes will increase, and market price will decrease.

<h3>What is supply?</h3>

Supply can be defined as the amount of goods or product produce that is available for buyers to buy or purchase.

If the cost of production is lower ,this will lead to increase in production as companies will be able to buy more materials and the outcome of this is that the market price of goods or product will reduce because the cost to manufactures has reduced.

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While Ken appreciates that as a result of his communication-based self improvement plan he will be a better person, he knows that the greatest benefit will be to ______.

b. Become a more effective worker

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3 years ago

Read 2 more answers

Inventory records for Dunbar Incorporated revealed the following:Date Transaction Number of units Unit CostApr. 1 Beginning inve

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Answer:

Explanation:

1. Calculate ending inventory Rate per unit Total cost

number of units ($) ($)

Beg bal (April1) 450 2.19 985.50

Add:purchases

April 20 410 2.69 1102.90

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Total goods

av for sale 860 2088.40

Less: Sales:

During April 590

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Ending inventory 270

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3 years ago

Overhead Variances, Four-Variance Analysis Oerstman, Inc., uses a standard costing system and develops its overhead rates from t

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Answer:

Explanation:

1).

Fixed overhead rate = Budgeted fixed overhead / Budgeted direct labor hours = $585,280 / 496000 = $1.18 per hour

Standard hour per unit = 496000 / 124000 = 4 hours per unit

Standard hours for actual production = 119300 * 4 = 477200 hours

Budgeted fixed overhead = $585,280

Actual fixed overhead = $555,750

Fixed overhead applied = SH * Standard rate of fixed overhead = 477200 * $1.18 = $563,096

Fixed overhead spending variance = Budgeted fixed overhead - Actual fixed overhead

= $585,280 - $555,750 = $29,530 F

Fixed overhead volume variance = Fixed overhead applied - Budgeted fixed overhead

= $563,096 - $585,280 = $22,184 U

2).

Standard rate of variable overhead = ($813,440 - $585,280) / 496000 = $0.46 per hour

Actual rate of variable overhead = $260,700 / 494000 = $0.5277327935 per hour

Variable overhead spending variance = (SR - AR) * AH = ($0.46 - $0.5277327935) * 494000 = $33,460 U

Variable overhead efficiency variance = (SH - AH) * SR = (477200 - 494000) * $0.46 = $7,728 U

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3 years ago

At the present time, Andalusian Limited (AL) has 20-year noncallable bonds with a face value of $1,000 that are outstanding. The

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Answer:

After tax cost of debt is 6.45%

Explanation:

In computing the after tax cost of debt, the starting point would be to ascertain the pre-tax cost of debt-yield to maturity-before applying the tax.

The yield to maturity can be calculated using the rate formula in excel ,given as :=rate( nper,pmt,-pv,fv)

nper is the nuer of coupon interest the bond would pay which is 20

pmt is the annual payment of the bond which is 13%*$1000=$130

pv is the current price of the bond $1,181.96

fv is the face value of the bond which is $1000

=rate(20,130,-1181.96,1000)

rate=10.75%

Pretax cost of debt is 10.75%

After tax cost of debt=pretax cost of debt*(1-tax rate)

tax rate is 40%=0.4

=10.75%*(1-0.4)

=6.45%

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3 years ago

Leonore's Luxury Leather Footwear Corp. conducted a SWOT analysis and determined that at least 57% of consumers would demand hig

FinnZ [79.3K]

Answer: Forecast.

Explanation:

The predicted increase in sales of of the Leonore's Luxury Leather footware is an example of a forecast of future events. A forecast is an estimation of an event or trend that would possibly occur in the future.

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3 years ago