Business functions are the activities carried out by an enterprise; they can be divided into core functions and support functions. Core business functions are activities of an enterprise yielding income: the production of final goods or services intended for the market or for third parties
Answer:
The correct answer is option d.
Explanation:
The total product cost method of applying the cost-plus approach to product pricing includes total selling and administrative expenses plus desired profit in the markup.
The reason behind this is that while total manufacturing costs are included in the product cost, the total selling and administrative cost is not included. So the total selling and administrative expenses plus desired profit are included in the markup.
Answer: See explanation
Explanation:
a. What was the initial cost to Mitchell Labs to go private?
This will be calculated as:
= Price per share × Number of shares
= $17.50 × 3.3 million
= $57.75 million
b. What is the total value to the company from (1) the proceeds of the divisions that were sold, as well as (2) the current value of the 3.30 million shares (based on current earnings and an anticipated P/E of 12)?
This will be calculated as:
= $13.5 Million + $9.25 Million + $23 Million + [(12 X $ 1.40) × 3.3 Million]
= $45.75 Million + $55.44 Million
= $101.19 Million
c. What is the percentage return to the management of Mitchell Labs from the restructuring?
This will be calculated as:
= {$101.19 Million - $57.75 Million} /$57.75 Million
= $43.44/$57.75 × 100
= 0.7522 × 100
= 75.22%
Answer:
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