Help with economics?

The centralized computer technology department of Hardy Company has expenses of $78,400. The department has provided a total of

Artemon [7]

Answer:

Expenses to be apportioned to Retail Division $68,992

Expenses apportion to Commercial Division

$9,408

Total Expenses $ 78,400

Explanation:

Hardy Company Computer Technology Dept. expenses to be apportioned to Retail Division and Commercial Division.

Total Expenses $ 78,400

Hours used by Retail Division 9,856

Hours used by Commercial Division 1,344

Total hours put in by Computer Tech Dept. 11,200 Hours

Therefore, expenses to be apportioned to Retail Division

= 9,856/11,200 X $ 78,400

= $68,992

Expenses apportion to Commercial Division

= 1,344/11,200 X $78,400 = $9,408

Total Expenses $ 78,400

6 0

3 years ago

McGaha Enterprises expects earnings and dividends to grow at a rate of 25% for the next 4 years, after the growth rate in earnin

Lerok [7]

Answer:

The correct option is B,$29.05

Explanation:

The required rate of return is can be computed using Miller and Modgiliani CAPM formula below:

Ke=Rf+Beta*Mrp

Ke is the cost of equity which is unknown

Rf is the risk free rate of 3.00%

Mrp is the market risk premium of 5.50%

Beta is 1.2

Ke=3.00%+(1.2*5.50%)

Ke =9.6%

The current price of the common stock is the present value of dividends payment and stock price(terminal value) as shown below discounted with Ke of 9.6%

Year 1 $1.25*(1+25%)=$1.56 *1/(1+9.6%)^1=$1.43

Year 2 $1.56*(1+25%)=$1.95 *1/(1+9.6%)^2=$1.63

Year 3 $1.95*(1+25%)=$2.44 *1/(1+9.6%)^3=$1.85

Year 4 $2.44*(1+25%)=$3.05 *1/(1+9.6%)^4=$2.11

Terminal value=year 4 dividend/ke=$3.05/9.6%=$31.79*1/(1+9.6%)^4=$22.03

Total present values=$1.43 +$1.63+$1.85 +$2.11 +$22.03=$29.05

7 0

4 years ago

The process of posting is the transfer of debits and credits from the a.ledger to the journal. b.journal to the ledger. c.T acco

antiseptic1488 [7]

Answer:

The correct answer is letter "B": journal to the ledger.

Explanation:

The activity in which accountants transfer information from the journals to the general ledger is called posting. By posting, only the balances are transferred to the general ledger, not individual transactions. There are no set intervals in which postings should be made. It depends on how often the activities of the company requests it.

6 0

3 years ago

Suppose that Jane enjoys Diet Coke so much that she consumes one can every day. Although she enjoys gourmet cheese, she consumes

PilotLPTM [1.2K]

Answer:

The correct answer is option b.

Explanation:

Jane enjoys Diet Coke so much that she consumes one can every day.

She likes gourmet cheese as well but she consumes it sometimes.

If the price of Diet Coke rises, Jane decreases her consumption by only a very small amount.

But if the price of gourmet cheese rises, Jane decreases her consumption by a lot.

This is because, for Jane, diet coke is a necessity but cheese is a luxury good. So, when price increases the demand for diet coke will decrease by a little amount and demand for cheese will decrease by a great amount.

3 0

3 years ago

Simone is working to establish her reputation at Alpha Assemblies as part of her internship opportunity. She is looking for a wa

Tpy6a [65]

Complete question:

Alpha Assemblies produces a wide variety of products in their central Nebraska facility. Many of these products fit within a line of standard truck and trailer parts. Within this is a set of hitches that can be made in two sizes (1-1/4 and 2) and three strengths (light duty, medium duty, and heavy duty). All of the hitches in this line have "natural" finishes so no additional steps are necessary after they are cast. The machine used to cast these six hitch variations is available for 2000 hours per year. Operators are paid $15.00 per hour including benefits.

Simone is working to establish her reputation at Alpha Assemblies as part of her internship opportunity. She is looking for a way to improve the operations. She has been working on the hitch project and is looking at possible ways to cut costs. At this point she has studied the processes and their associated costs, and completed forecasts for the next year's demand.

Hitch A is the 1-1/4 inch, light duty, natural hitch. Simone has forecast the demand for this hitch at 5,656 units for the next year. It takes one operator 5.4 hours to perform a setup to produce a batch for this hitch and no other setup costs are incurred when setting up the machine. In addition, the holding costs for this item are $4.39 per unit per year. This hitch has a current batch size of 1,500 units per production run.Simone has determined that traditional EOQ is applicable for this problem. Determine the order quantity (EOQ) Simone should use if this determination is correct.

Don't round any numbers in the middle of the problem. Provide your answer to two (2) decimal places.

Answer:

EOQ = 323.05 units

Explanation:

Given the following:

Demand, D = 5656 units

Holding cost, H= $4.39 per unit per yr

Time for setup = 5.4 hours

Payment per operator = $15.00 per hour

Calculate for setup cost:

Set up cost, S = Setup time * payment

5.4 * $15 = $81

Find the order quantity, EOQ.

Take the expression

$EOQ = \sqrt{\frac{D*S}{H}}$

$= \sqrt{\frac{5656 * 81}{4.39}$

$\sqrt{104358.997}$

EOQ = 323.05 units

5 0

3 years ago

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