Answer:
Sales 3,575,000
Variable Manufacturing 1,567,500
Fixed Manufacturing <u> 247,500</u>
COGS: 1,815,000
gross profit 1,760,000
Variable S&A expense 302,500
Fixed S&A expense <u> 191,250 </u>
Net Income 1,266,250
Explanation:
Absorption cost will consider unit cost only the manufacturing department cost the rest are period cost.
We solve for the fixed overhead per unit using produced units:
Fixed overhead $382,500 / 85,000 = 4.5
Then we add it to the variable cost of 28.5 and get a unit cost of $33
Wer multiply by the 55,000 units to get COGS
the rest will be period cost.
<span>Implicit Cost Explicit Cost
The wholesale cost for the pianos that Darnell pays the manufacturer $452,000
The salary Darnell could earn if he worked as an accountant $48,000
The wages and utility bills that Darnell pays $301,000
The rental income Darnell could receive if he chose to rent out his showroom $38,000
B.
Profit ($)
Accounting Profit 842,000 - 452,000 - 301,000 = 89,000
Economic Profit 842,000 - 452,000 - 301,000 - 48,000 - 38,000 = 3,000
C. Economic Profit as an accountant = 48,000 + 38,000 - 89,000 = -$3,000. Thus, Darnell should stay in the Piano business to maximize the Economic Profit.</span>
Answer:
Calandra should buy call on Canadian Dollars on C$ $0.7000 $0.00049
Explanation:
If she is expecting the Canadian dollar to appreciate versus the United States Dollar in the future, she would buy a calla that gives her the right to buy Canadian Dollars at a lower price than hers future cost projection.
Answer: a 0.049, 0.05 and 0.05 or 5%
b 0.039, 0.041 and 0.041 or 4%
Explanation:
Ai discounted yield = [(Face value - purchase price)/Face value] * 360/ maturity
Discount yield =:[(100000 - 96040)/100000] * 360/290
= 0.0396* 1.24
= 0.049
ii. Bond equivalent yield (BEY) = [(Face value - purchase price)/purchase value] * 365/M
BEY= [(100000 - 96040)/96040] * 365/290
BEY = 0.05
iii EAR = [(1+BEY/n)exp n - 1)
EAR = [(1 + 0.05/(365/290)) exp (360/290) - 1]
EAR = [(1 + 0.05/1.26) exp (1.26) - 1
EAR = (1.04) exp (1.26) - 1
EAR = 0.05 or 5%
The same formula are applied for the B part
Discount yield = [(100000-96040)/100000] * 360/365
Discount yield = 0.0396 * 0.986
= 0.039
B ii. BEY = [(100000 - 96040)/96040] * 365/365
BEY = 0.041 × 1
BEY = 0.041
B iii. EAR = [(1 + 0.041/(365/365))exp (365/365) - 1
EAR = (1 + 0.41) - 1
EAR = 0.041 or 4%
