Answer:
Standard production is more profitable.
Most profitable sales mix = 264,000 standard units (and 0 premier unit)
Explanation:
As per the data given in the question,
For standard product :
Contribution margin for every hour = 8 × $22
= $176
For premier product :
Contribution margin for every hour = 5 × $30
= $150
As, contribution margin of standard product is greater than premier product, Therefore, Logan company should employ all the production hours to produce only standard product to get the maximum profit.
Therefore, Most profitable sales mix = 33,000 hours × 8 unit per hour
= 264,000 standard units (and 0 premier unit)
Answer:
Correct option is D
Explanation:
Variable cost remains constant for each single unit.
That means variable cost is defined per unit, therefore with this we know statement b is correct.
Also with change in production in number of units, the total cost varies and proportionately changes with change in level of output.
Therefore statement A is also correct.Thus on the conclusive part, Staement D is correct.
Answer:
Confidence
Explanation:
For example, if you want to be a good student be confindent because one day you will succeed, Oliver has confindence knowing he can help his empolyees.
Answer:
Ans. The cost of equity capital is 6.5 (6.5%)
Explanation:
Hi, all we need to do is fill the following equation with the data from the problem.
Where:
rf = Risk free rate (in our case, 2%)
MRP = market risk premium (in our case, 6%)
r(e) = Cost of equity capital
Therefore, this is what we get.
So the cost of equity capital is 6.5% or 6.5 as the problem suggests to answer.
Best of luck.
Answer:
3.50
Explanation:
Given the information above, we need to find first the Average fixed assets.
Average fixed assets = Fixed assets beginning balance + Fixed assets ending balance / 2
= ($370,000 + $398,000) / 2
= $384,000
Then , the fixed assets turnover will be calculated as;
Fixed assets turnover = Net revenue / Average net fixed assets
= $1,340,000 / $384,000
= 3.50
Therefore, Campbell Co. Fixed asset turnover ratio would be 3.50
