Answer:
He should reorder when he is left with 200 hammers.
Explanation:
Reorder point is the trigger which informs the businessmen to order the inventory when the stock is used.
Reorder point = Safety Stock + (Average daily usage of units * Average lead time in days )
Reorder Point = 0 + (100 hammers * 2 days)
Reorder Point = 200
Answer:
Because the wealthy estates owners made land too expensive
Explanation:
In recent time, the development of industries in the south toward San Mateo as slowed down due to the fact that the estates owners in the south have made land too expensive for the industrialist to acquired. The tends development to drift toward other part of nation towards Oakland, Pittsburgh and Contra Costa.
Answer:
WACC without debt is higher by = 1.7%
Explanation:
<em>The weighted Average cost of Capital (WACC) is the average cost of capital for the different sources of long-term capital available to a firm weighted according to the proportion each source of finance bears to the total capital in the pool..</em>
To determine the amount by which WACC would be higher, is the difference between WACC with and without debt.
WACC using debt
<em>Step 1</em>
Cost of debt = Before tax cost of debt × (1-T)
= 7%× (1-0.21) = 5.5%
Step 2
<em>Market value of debt and equity</em>
Market of debt = 200 million
Market value of equity = $55 × 10 = $550 million
Total market value = 550 + 200 = $750 million
Step 3
WACC with debt = ((5.5%× 200) + (12%.× 550))/ 750
= 10.3%
WACC without debt (i.e only equity)
WACC without debt = cost of equity = 12%
Difference in WACC between with and without debt
= 12%- 10.3%
= 1.7%
The WACC without debt is higher by 1.7%
Answer:
Correct option is C
$892,500
Explanation:
Profit = (CM ratio × Sales) − Fixed expenses
−$33,000 = (0.40 × $810,000) − Fixed expenses
Fixed expenses = (0.40 × $810,000) + $33,000 = $357,000
Dollar sales to break even = Fixed expenses ÷ CM ratio
= $357,000 ÷ 0.40 = $892,500
