Because walmart has an efficient inventory replenishing system, they are able to reduce overhead costs.
Answer:
(a) 14%
(b) 15%
(c) 15.48%
Explanation:
cost of retained earnings:
= ($3.03 ÷ $34) + 0.05
= 0.09 + 0.05
= 14%
Therefore, the Evanec's cost of retained earnings is 14%
Flotation cost percentage:
= [($34 - $28.90) ÷ $34] × 100
= 0.15 × 100
= 15%
Therefore, the Evanec's percentage flotation cost is 15%.
Cost of new common stock:
= ($3.03 ÷ $28.90) + 0.05
= 0.1048 + 0.05
= 15.48%
Therefore, the Evanec's cost of new common stock is 15.48%.
Answer:
$184.34
Explanation:
The computation of activity rate for the Order Size activity cost pool is shown below:-
The Activity rate for Order size = Estimated order size overhead cost ÷ Total machine hours
= 1,069,190 ÷ 5,800
= $184.34
Therefore for computing the activity rate for the Order Size activity cost pool we simply applied the above formula and ignore all other value.
Answer:
a. -1.5
Explanation:
The computation of the price elasticity of demand is shown below:
As we know that
Price elasticity of demand = E ÷ 1 + E × MC
E ÷ 1 + E × (3)
3 + 3E = E
3E - E = -3
2E = -3
E= -3/2
E = -1.5
Hence, the price elasticity of demand is -1.5
Therefore the correct option is a.
We simply applied the above formula so that the correct value could come
And, the same is to be considered