Answer:
$20.833
Explanation:
Given that,
Number of order operators = 30
Cost associated with these order = $1,000,000 per year
Each operator worked = 2,000 hours per year
Productive work provided by each operator = 1,600 per year
Cost for each order = Total Cost associated ÷ Number of order operators
= $1,000,000 ÷ 30
= $33,333.3333
Rate per hour for each order entry employee:
= Cost for each order ÷ Productive work provided by each operator
= $33,333.3333 ÷ 1,600
= $20.833
Answer:
$10.00
Explanation:
Calculation to determine The selling price that would maintain the same contribution margin ratio as last year is
Based on the information given since variable cost increased by one-third (1/3) which means that the selling price amount has to as well increase by the same one-third (1/3) in order to maintain the same contribution margin ratio as last year.
Hence:
Selling price =$7.50+(1/3*$7.50)
Selling price=$7.50+$2.50
Selling price=$10.00
Therefore The selling price that would maintain the same contribution margin ratio as last year is $10.00
Answer: b. Because the opportunity cost of the fourth unit of capital is the consumption goods that must be given up for this economy to move from three units of capital to four units of capital, but the opportunity cost of four units of capital is the amount of consumption goods that must be given up to go from zero units of capital to four units of capital.
Explanation:
The opportunity cost of the 4th unit of capital refers to how many units of consumption need to be given up for the economy to move from the third unit to the forth unit of capital. In other words, the economy needs to give up 4 more goods to move from the 3rd unit of capital to the fourth.
But if the Economy was to produce the entire 4 units of capital it would have to give up the entire 10 units of consumption in total.
Answer and Explanation:
a. The solution of return on assets under each cost flow is described below:-
Return on assets under FIFO = Net income ÷ Average total assets
= $244,087 ÷ $1,550,550
= 15.7%
Return on assets under LIFO = Net income ÷ Average total assets
= ($244,087 - $44,110) ÷ ($1,550,550 - $40,630)
= $199,977 ÷ $1,509,920
= 13.2%
b. The computation of return on assets under each cost flow is shown below:-
Return on assets under FIFO = Net income ÷ Average total assets
= $288,567 ÷ $1,880,970
= 15.3%
Return on assets under LIFO = Net income ÷ Average total assets
= ($288,567 + $22,660) ÷ ($1,880,970 - $45,690)
= $311,227 ÷ $1,835,280
= 17%
Answer:
$33.50
Explanation:
we can use the perpetual growth model to determine the price of the stock
the firm's stock price = ($1.25 x 1.15)/1.11 + ($1.25 x 1.15²)/1.11² + ($1.25 x 1.15³)/1.11³ + [($1.25 x 1.15³ x 1.06)/(11% - 6%)]/1.11³
the stock price in 3 years = ($1.25 x 1.15³ x 1.06)/(11% - 6%) = $40.30
the firm's stock price = ($1.25 x 1.15)/1.11 + ($1.25 x 1.15²)/1.11² + ($1.25 x 1.15³)/1.11³ + $40.30/1.11³ = $1.30 + $1.34 + $1.39 + $29.47 = $33.50
