Answer:
d. purchase the machine because each partner has one vote in management matters
Explanation:
Since in the question it is mentioned that the partners vote whether or not to buy a new machine for $100 so the violet and William would agree on this but Xavier does not agree
Now according to this situation the machine should be purchased as each partner vote is necessary also there is a majority of 2 person to buy the machine
hence, the option d is correct
Answer:
25%
Explanation:
the formula for the margin of safety is as follows
margin = current sales level -breakeven point/ current sales level x 100
expected sales unit = 20,000 units
the break-even point is fixed costs/contribution margin
fixed costs= $360,000
contribution margin = sales price- variable costs
=61-37
=24
breakeven point = $360,000/ 24
=15000
the margin of safety = 20,000-15,000/20,000 x 100
=5000/20000 x 100
=25%
Answer:
The rate of return expected on this project by Cold Goose Metal Works Inc. is 15.20%
Explanation:
Since flotation cost is 4% that implies that $500,000 is actually 96% (100%-4%) of the cash proceeds from the capital funding,hence funds raised is computed thus:
funds raised=$500,000/0.96=$520,833.33
Annual return on investment=cash inflow-initial cash outflow
cash inflow is $600,000
cash outflow is $520,833.33
annual return on investment=$600,000-$520,833.33=$79166.67
rate of return on project=annual return on investment/initial investment
=$79,166.67
/$520,833.33*100=15.20%
The rate of return that Cold Goose Metal Works Inc is 15.20%
Answer:
a)A foreign subsidiary with current assets in excess of current liabilities will cause a translation gain (loss) if the local currency appreciates (depreciates).
Explanation:
Answer:
D. $3240000.
Explanation:
Particulars Amount ($) Amount ($)
Direct materials used 1,880,000
Direct Labor 760,000
<u>Manufacturing Overheads </u>
Factory Utilities 150,000
Indirect Labor 50,000
Factory Depreciation <u>400,000</u> <u>600,000</u>
Total Manufacturing cost <u>$3,240,000</u>
