Answer:
b. An increase of $15 million
Explanation:
The computation of the cash impact of the change in working capital is shown below:
As we know that
Working capital = Current assets - current liabilities
So, the change in working capital is
= Increase in current assets - increased in current liabilities
= $40 million - $25 million
= $15 million
Hence, the b option is correct
Answer:
Results are below.
Explanation:
<u>First, we need to determine the standard production costs:</u>
Direct materials= 9.6*4.55= $43.68
Direct labor= 1*15.80= $15.8
Variable manufacturing overhead rate= 3.40*1= $3.4
Predetermined fixed manufacturing overhead rate= 6*1= $6
<u>Finally, the standard cost per unit:</u>
Total unitary cost= 43.68 + 15.8 + 3.4 + 6= $68.88
The argument above is a deductive reasoning. A deductive reasoning draws a conclusion from a series of premises that are held to be true. The argument also employs no informal fallacy. The confusion lies though on the first premise if it is true.
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