Answer:
The correct answer is D.
Explanation:
Giving the following information:
Total Variable manufacturing costs 288,000
Unitary variable costs= 288,000/24,000= $12
Rhythm Company has offered to purchase 3,000 IT-54s at $16 each. No variable selling costs will be incurred.
Because it is a special offer and there is available capacity, we will not have into account the fixed costs.
Effect on income= 3,000*(16-12)= $12,000 increase
Answer:
a. NAV = 8 per share
b. 250.000 shares
c. 7.95
Explanation:
a. NAV = Market value of shares/number of shares = $8m/1m = $8 per share
b. At the current NAV, it can absorb up to $2 million, or 250,000 shares.
c-1. Its loss by selling 25,000 shares of IBM at $34 instead of $36 = -$2 x 25,000 = -$50,000.
New NAV = $7,950,000 /1m = $7.95
Answer: Not necessarily: The debt ratios are not directly comparable, since each company is in a different industry.
Explanation:
We cannot authoritatively state that even though Boeing has such a high debt rate, that it is a riskier company than either Microsoft or PG&E. This is due to the drawback in ratio analysis of bias if compared across different industries.
Ratio analysis best works when comparing companies in the same industry because their situations will be similar. Comparing across industries can be misleading because different industries operate in different ways. In the Airplane manufacturing business for instance, having a high amount of debt due to having the tangible assets to back it up might be a normal thing.
The debt ratios are therefore not directly comparable because each company is in a different industry.
Answer:
Federal communication commission
Explanation:
The organization which recently ruled that the internet service providers who could charge different rates for different types of users was the Federal Communication Commission.
Hope this helps.
Good luck and Thank you.
Answer:
The answer is: C) $80,000
Explanation:
Marquis Company should recognize gains from both a reduction in the debt's principal and its interest.
The debt principal was $300,000 and the interests were $30,000 (10% of the principal), their total amount was $330,000. If the bank accepted $250,000 as total settlement for the debt, then the difference between the total debt and the settling payment is considered gain: $330,000 - $250,000 = $80,000
