Answer:
The customer have to accept the trade at the amount of $28
Explanation:
Based on the information given we were told that the actual amount the customer paid when the customer order was filled was the amount of $28 and not the amount of $27.50 which was the purchase price given by the broker dealer, Hence based on this we can vividly say that the customer have to accept the trade at the amount of $28 which was the actual amount paid when the order was filled.
Therefore the customer will have to accept the trade at the amount of $28.
Answer:
There will be a difference in the income .
Absorption costing income will be lower as it transfers all the fixed costs to the ending inventory.
Variable costing income will be higher as it does not transfer the fixed costs to the ending inventory.
The difference will be of $ 104000
Explanation:
Increase in units 8000
Variable Fixed
Unit manufacturing costs of the period $24.00 $10.00
Unit operating expenses of the period 8.00 3.00
Total Unit Costs $ 32.00 $ 13.00
The net operating income under variable costing for the year will be $ 13* 8000= $ 104000 Lower than the net operating income under absorption costing. This is because the all fixed costs will be treated as period cost rather than product costs.
In variable costing the ending inventory will be $104000 lower than the ending inventory under absorption costing because the fixed costs will not be allocated to products.
Under variable costing, the units in the ending inventory will be costed at $32 each.Under absorption costing, the units in the ending inventory will be costed at $32+ $ 13= $ 45 each.
Answer:
Value of the company is $334,101
Explanation:
Value of unlevered firm =
Where;
EBIT = Earnings before interest and tax
t = tax rate
ke = Cost of equity (cost of capital)
Value of unlevered firm =
value of unlevered firm = $331,571.43
Value of firm = Value of unlevered firm + Debt (tax rate)
Value of firm = $331,571.43 + $11,000*(23%)
Value of firm = $334,101.43
Value of firm = $334,101
Answer:
is relative percentage in which a company sells its multiple products.
Explanation:
Sales mix is method use in calculating thee each unit/proportion of goods that are sale in the company relatively to the total sales. Whenever there is a change in the sales mix of a firm, then the profit change, sales mix helps to know which particular product sells more than the other one in the company.it should be noted that sales mix is relative percentage in which a company sells its multiple products.