A. An income of 25,000 annually is not enough to sustain a household and creditors would be hesitant to loan money to someone without resources to easily repay it.
Answer:
$84,000
Explanation:
The computation is shown below:
Particulars Order Size Customer support Other Total
Manufacturing overhead $24,000 $408,000 $48,000 480000
Selling and administrative
expenses $60,000 $20,000 $20,000 $100,000
Total $84,000 $428,000 $68,000 $580,000
The allocation of manufacturing overhead is done in 5% 85% 10% 100%
The allocation of selling and administrative expense is done is 60% 20% 20% 100%
Answer: If the price of bagels is reduced "a.The demand curve for doughnuts will shift to the left."
Explanation: Being substitute goods The decrease in the price of bagels causes consumers to prefer to consume bagets before donating, therefore the demand for donuts will shift to the left (decrease).
Answer and Explanation:
The preparation of the bank reconciliation statement for August 31 is presented below:
Miller Co.
Bank reconciliation statement
August 31
Particulars Amount Particulars Amount
Bank cash balance $4,709 Company cash balance $5,162
Add: Less:
Deposits in transit $1,035 Bank service charges -$33
Less: Outstanding Error in recording -$9
Check -$624
Bank balance Company balance
After reconciliation $5,120 After reconciliation $5,120
Answer:
10.77%
Explanation:
FV: $1000
PV: $845.87
PMT: $60
Nper: 40 = (25 years - 5 years ago)* 2 for semi-annual payment
We use excel to calculate semi-annual discount rate by formula Rate(Nper,PMT,-PV,FV)
= rate(40,$60,-$845.87,$1000) = 7.18%
⇒ annual rate = semi-annual rate * 2 = 7.18% * 2 = 14.36%
after-tax cost of debt = 14.36% * (1 - 25%) = 10.77%
<em>Please see excel attached for the calculation</em>
