Answer:
net income = $199,000
Explanation:
In order to calculate net income, we will first start with EBIT or income from operations and then subtract income tax expense, loss from sale of investments and finally income taxes:
- EBIT = $415,000
- Interest expense = $71,000
- Loss from sale of investments = $87,000
- Income tax expense = $58,000
- Net income = $199,000
Answer: Option (d) is correct.
Explanation:
An indifference curve is a graphical representation of two goods which reflects all the combination of two goods to be consumed by the individual.
Indifference curves are convex to the origin and two indifference curves never intersect each other.
All the combination of two goods on a single indifference gives equal level of satisfaction and yield the same level of total utility.
Answer:
Factory overhead= $8,500
Explanation:
Giving the following information:
B&T Company's production costs for May are: direct labor, $13,000; indirect labor, $6,500; direct materials, $15,000; property taxes on production facility, $800; factory heat, lights and power, $1,000; and insurance on plant and equipment, $200.
Factory overhead= indirect labor + property taxes + factory heat, lights and power + insurance
Factory overhead= 6,500 + 800 + 1,000 + 200= $8,500
Answer:
3,000
Explanation:
Data provided in the question:
Number of shares authorized = 15,000
Number if shares issued = 4,500
Number of shares repurchased = 1,500
Now,
Total shares outstanding = Shares issued - Shares repurchased
or
Total shares outstanding = 4500 - 1,500
or
Total shares outstanding = 3,000
Hence,
3,000 shares are outstanding at December 31
Answer:
From a cost savings perspective the switch should be made in-house
Explanation:
In deciding whether Cool Systems should make or buy the switch , we calculate the relevant applicable to both situations,then compare t see which option saves costs.
The cost of making the switch is calculated thus:
Direct materials per unit $5
Direct labor $3
Variable overhead <u>$6</u>
Total relevant cost <u> $14</u>
The cost of purchasing the switch from another supplier is $15
From the above analysis, it is preferable to make the switch in-house as that option saves $1($15-$14) per switch.
However, it might be that we need to look beyond cost savings sometimes,purchasing the switch from another supplier might be viable if the quality of the outside switch is better or that the outside supplier can deliver in timely fashion.
