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3 years ago

If the british pound (₤) appreciates by 10% against the dollar:

1 answer:

4 0

The answer to this question is the US importer of British goods will tend to find that their cost of goods rises, hurting its bottom line<span>.
when the british pound is appreciated by 10%, it means that we need additional 10% to acquire a pound with our dollar currencies. In American traders' perspective, this will increase their overall cost that they need when doing transactions with british companies.

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Cost leadership is a sustainable source of competitive advantage only if no barriers exist that prevent competitors from achievi

krek1111 [17]

Answer: false

Explanation:

The statement is false because cost leadership is not really sustainable as it's cost effective due to the maintenance charge required to keep them in a great care despite the low operational cost being runned by the organization

6 0

3 years ago

Net credit sales for the year are $750,000. The end of year accounts receivable balance is $160,000. The allowance for doubtful

alexandr402 [8]

Answer: $3000

Explanation: Allowance for doubtful accounts is the contra account to accounts receiveable when all the bad debts need to be accounted for. The bad debts reduces the accounts receivable line but all bad debts are actually deducted from the allowance for doubtful accounts.

The allowance for doubtful accounts for that year is calculated as 5% of the accounts receivable balance. This amounts to $8000 (160000 x 5%) before bad debts have been accounted for. Allowance for doubtful accounts moves in the opposite direction as accounts receivable because it is a contra account to this line item. At the end of the year before year end closing entries are done, and after the bad debts have been accounted for, the balance on the allowance for doubtful accounts is $5000.

This means that bad debts for that year is:

8000 (balance before bad debts have been accounted for)

- 5000 (balance after bad debts have been accounted for)

= $3000.

5 0

4 years ago

Leonard, inc., which uses a volume-based cost system, produces cat condos that sell for $126 each. direct materials cost $10 per

Juli2301 [7.4K]

The gross profit is $146.75

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3 years ago

Which of the following statements is CORRECT? a. Because of tax effects, an increase in the risk-free rate will have a greater e

Anastaziya [24]

Answer: I found the complete Question: Which of the following statements is CORRECT?

a. Because of tax effects, an increase in the risk-free rate will have a greater effect on the after-tax cost of debt than on the cost of common stock as measured by the CAPM.

b. If a company's beta increases, this will increase the cost of equity used to calculate the WACC, but only if the company does not have enough reinvested earnings to take care of its equity financing and hence must issue new stock.

c. When calculating the cost of preferred stock, companies must adjust for taxes, because dividends paid on preferred stock are deductible by the paying corporation.

d. Higher flotation costs reduce investors' expected returns, and that leads to a reduction in a company's WACC.

e. When calculating the cost of debt, a company needs to adjust for taxes, because interest payments are deductible by the paying corporation.

And the correct answer is "e. When calculating the cost of debt, a company needs to adjust for taxes, because interest payments are deductible by the paying corporation.".

When calculating the cost of debt issuance, the company, in addition to taking into account the issuance costs, must calculate the cost adjusted for taxes because interest payments are deductible for debt issuing companies.

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4 years ago

Chuck Wagon Grills, Inc., makes a single product—a handmade specialty barbecue grill that it sells for $215. Data for last year’

Stella [2.4K]

Answer:

Instructions are listed below

Explanation:

Giving the following information:

Selling price= $215

Units in beginning inventory 0

Units produced 9,800

Units sold 9,300

Units in ending inventory 500

Variable costs per unit:

Direct materials $ 61

Direct labor 33

Variable manufacturing overhead 10

Variable selling and administrative 15

Total variable cost per unit $ 119

Fixed costs:

Fixed manufacturing overhead $ 274,400

Fixed selling and administrative 510,000

Total fixed costs $ 784,400

Absorption costing includes fixed manufacturing overhead in the cost per unit.

A) Unitary fixed manufacturing overhead= 274,400/9800 units= $28

Unitary cost= Direct materials + Direct labor + Variable manufacturing overhead + fixed manufacturing overhead

Unitary cost= 61 + 33 + 10 + 28= $132

B) Income statement:

Sales= 9300*215= $1,999,500

COGS= 132*9300=$1,227,600

Gross profit= $771,900

Total selling and administrative expense= 510,000 + 15*9300= 649,500

Net operating income= $122,400

4 0

3 years ago