Answer:
EBT= $5,000
Explanation:
<u>We need to calculate the earnings before taxes:</u>
Sales= 500*15= 7,500
COGS= 500*2= (1,000)
Gross profit= 6,500
Depreciation= (500)
Interest= (1,000)
EBT= 5,000
<u>Now, if we want to continue and calculate the net income:</u>
EBT= 5,000
Tax= (5,000*0.35)= (1,750)
Depreciation= 500
Net income= 3,750
Answer:
The Fixed overhead price is "U" (unfavorable) and the The fixed overhead production volume is "U" (unfavorable)
Explanation:
Solution
Given that:
Fixed overhead price Variance is computed as:
Fixed overhead price Variance = Actual - Budgeted
= 387,300 - 372,000
= 15,300 U
Thus,
The Fixed overhead production volume variance is computed as:
Fixed overhead production volume variance = = Budgeted - applied
= 372,000 - 361,200
= 10,800 U
Monopolistic Competition i believe is the answer
Answer:
The correct answer is letter "B": Accounting rate of return.
Explanation:
The rate of return is the earnings that the asset produces in excess of its initial cost. The figure is generally calculated as an annualized percentage. The rate of return can be determined based on the cash flows produced by the asset. Besides, this could involve an element of capital gain. The rate of return can be negative if the asset generates less profit than its cost.
The Accounting Rate of Return measures the return of a specific project in percentage terms. It is mostly used when the firm develops different projects at the same time allowing them to find out which one is more profitable.
Answer:
With a discounted rate of 10%, the payback period of the project is closest to three years.
Explanation:
To calculate this a Net Present Value (NPV) formula is needed. With a discounted rate of 10%, the NPV is calculated for different project's length (from year 6 to year 1, with the initial investment in year zero). The closest to value zero in NPV will correspond to the year where project payback is achieved. In this case, year 3 is the closest NPV to zero