Answer:
a. Mr Smith's orange business because it's a small fraction of the economy
Answer:
EPS = 1.077
Explanation:
302,000 shares at december 31th, 2017
202,000 issued
504,000 total
(net income - preferred stock dividends) / common stock
(626,000-83,000 ) / 504,000 = EPS = 1.077380952 = 1.077
Answer:
Contribution margin per unit= $21.6
Explanation:
Giving the following information:
Selling price per unit $34
Variable costs per unit:
Direct material $6
Direct manufacturing labor $2.40
Manufacturing overhead $0.80
Selling costs $3.20
<u>The contribution margin is calculated by deducting from the selling price all the variable components:</u>
Contribution margin per unit= selling price - total unitary variable cost
Contribution margin per unit= 34 - 6 - 2.4 - 0.8 - 3.2
Contribution margin per unit= $21.6
Answer:
a. $20,000
b. $180,000
Explanation:
Par value per preferred share = $8
Dividend rate = 5%
Dividend per preferred share = $8 * 5% = $0.40
Number of preferred shares = 50,000
a. Total dividend amount distributed to the preferred shareholders this year = 50,000 shares * $0.40 = $20,000
b. The total dividend amount distributed to the common shareholders this year = $200,000 - $20,000 = $180,000