Answer:
Option (D) is correct.
Explanation:
Given that,
Current market price = $7.50
Average variable cost = $8.00
Average total cost = $8.25
It can be seen from the above information that current market price is less than the average variable cost, i.e, $7.50 < $8.00.
Mrs. Smith should shut down its production in the short run as well as in the long run until the point where current market price is greater than or equal to average variable cost.
Answer:
The estimated rate based on labour hour==6
The actual rate based on labour hour=6.08
The rate based on machine hour=24
The rate based on machine hour= 22.66
Explanation:
Given that Carlson estimated its overhead costs to be $240,000,direct labor hours at 40,000 and machine hours at 10,000 as well as the actual overhead costs incurred of $249,280, actual direct labor hours of 41,000, and actual machine hours of 11,000.We can calculate the to apply .
The estimated rate based on labour hour=240000/40000=6
The actual rate based on labour hour=249280/41000=6.08
The rate based on machine hour=240000/10000=24
The rate based on machine hour=249280/11000=22.66
Answer:
Cost of equity will be equal to 0.76 %
Explanation:
We have given dividend just paid 
Growth rate = 0.04
So expected dividend for the next year 
Stock price 
We have to find company cost of equity , that is required rate of return
We know that stock price is given by
So 
= 0.76 %
Answer:
B. 10%
Explanation:
The computation of the effective annual interest rate is shown below:-
Effective annual interest rate = Lease payment third effective interest ÷ Lease payment second balance × 100
= $2,126 ÷ $21,260 × 100
= 10%
Therefore for computing the effective annual interest rate we simply applied the above formula.
Hence the correct option is B.
