Answer:
b. 21.54%.
Explanation:
The formula and the computation of the overhead application rate is shown below:
As we know that
Overhead application rate is
= (Applied factory overhead ÷ Direct labor cost)
where,
Applied factory overhead is $5,600
And, the direct labor cost is $26,000
Now putting these values to the above formula
So, the overhead application rate is
= ($5600 ÷ $26000)
= 21.54%
We simply divided the applied factory overhead which is indirect cost by the direct labor cost i.e direct cost so that the overhead application rate could come
Answer:
Kate will continue to operate in the short-run but plan on she will exit the business in the long-term
Explanation:
Kate's decision should be guided by her business's performance in terms of profitability. Kate is selling her meal at $5, but her total cost of serving the meal is $5.20. It means the business is operating at a loss.
Kate must start plantation on how she will leave that business. She may continue operating but only for a short while. Soon, she will find it hard to stay open because the business is loss-making. Kate will, therefore, continue operations in the short run. In the long term. Kate must plan on exiting the business.
Answer: <em>True</em>
Explanation:
MNC is abbreviated as multinational corporation also referred to as the worldwide enterprise is known as the amalgamated organization which owns or has control over the production of commodities and services in an nation other than its domestic ground. A MNC can further be referred to as or known as the transnational enterprise or multinational enterprise.
The bakery market in a large city is an example of Monopolistic competition.
Monopolistic competition exists when many companies offer competing products or services that are similar, but not perfect, substitutes. In this case, the bakeries in large cities that produce similar, but not identical products. The market structure is a form of imperfect competition.
Some of the characteristic of a monopolistic competition structure are;
The presence of many companies.
Each company produces similar but differentiated products.
Companies are not price takers.
Free entry and exit in the industry.
Companies compete based on product quality, price, and how the product is marketed.
For further clarification refer here;
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Answer:
Explanation:
a)
The YTM of the bond at par value is equals to its coupon rate, 8.75%. Other things being equal, this 4% coupon rate bond will be more eye-catching as the coupon rate is lower than the current market yields, and its price is far below the call price. So, if yields drop, capital gains on the bond will not be restricted by the call price.
b)
If an investor foresees that yields will fall considerably, the 4% bond proposes a better expected return.
c)
Implicit call protection is offered in the sense that any likely fall in yields would not be nearly enough to make the firm consider calling the bond. In this sense, the call feature is almost irrelevant
