Answer:
$0.1436
Explanation:
Given that,
$3,711 for 1,250 cases bottled
$3,790 for 1,800 cases bottled
Factory utility cost is a mixed cost containing both fixed and variable components.
Variable cost per unit:
= Difference in costs ÷ Difference in units
= ($3,790 - $3,711) ÷ (1,800 - 1,250)
= $79 ÷ 550
= $0.1436
Therefore, the variable factory utility cost per case bottled is closest to $0.1436.
Increase capital markets for example profit market
Answer:
b. $5m
Explanation:
If we purchase another company for $50m and the company you purchase has assets with a fair value of $75m and liabilities with a fair value of $30m. The amount of goodwill we should record in this transaction is: $5m
Goodwill upon acquisition of companies is derived by subtracting the fair value of NET ASSETS from the TOTAL CONSIDERATION (i.e the price paid to acquire the company)
In the scenario, the value of Net Assets is the value of the fairvalue of the assets less the fair value of the liabilities which is $75 - $30 = $45
While the Total Consideration = $50
Therefore Goodwill = $50m - $45m = $5m
Answer:
$31,104
Explanation:
EBIT / 12,000
= [EBIT - ($120,000 × .072)] / [12,000 - ($120,000 / $36)]
EBIT = $31,104
Therefore the minimum level of earnings before interest and taxes that the firm is expecting will be $31,104
