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zhenek [66]
3 years ago
10

Garrett Company provided the following information:

Business
1 answer:
Shalnov [3]3 years ago
8 0

Answer:

Correct option is C

<u>Overall operating income will decrease by $25,000.</u>

Explanation:

Sales ratio = Sales of product 1 : Sales of product 2 = 200,000:300,000 = 2:3

Sum of sales ratio = 2+3 = 5

Common fixed cost:

Product 1 = 2/5×46,000 = $18,400

Product 2 = 3/5×46,000 = $27,600

Total net operating income = Net operating income of product 1 + Net operating income of product 2 = 46,600+(2,600) = 46,600-2,600 = $44,000

Now, comparing with the total net operating income of both the product ($44,000) with only product 1 ($19,000); overall operating income decreases by $25,000 (44,000-19,000)

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He auto repair shop of Quality Motor Company uses standards to control the labor time and labor cost in the shop. The standard l
dalvyx [7]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

The standard labor cost for a motor tune-up is given below:

Standard Hours= 2.5

Standard Rate= $33

Standard Cost Motor tune-up= 82.5

The shop supervisor recalls that 58 tune-ups were completed during the week, and the controller recalls the following variance data relating to tune-ups:

Labor rate variance $ 80 F

Labor spending variance $ 118 U

1) Direct labor efficiency variance= (SQ - AQ)*standard rate

Direct labor efficiency variance= (58*2.5  - actual quantity)*33

118= (145 - AQ)*33

118= 4,785 - 33AQ

-4,667= -33AQ

141.42= Actual Quantity

2) Direct labor price variance= (SR - AR)*AQ

80= (2.5 - Actual rate)*141.42

-273.55= -141.42AR

1.92= Actual rate

8 0
3 years ago
Question 1
valina [46]
The answer is





Profits
5 0
2 years ago
1. A local college is deciding whether to conduct a campus beautification initiative that would involve various projects, such a
FinnZ [79.3K]

Answer:

For the students of the college, the visual appearance of the campus is non-rival and non-excludable

The benefit of the beatification initiative, as suggested by the survey, is $3,390. Because the estimated benefit is less than the cost, the college administrators should not undertake the beautification initiative.

Explanation:

non-rival and non-excludable

This means that everyone benefits from the remodel equally and people who do not pay for it will still enjoy their benefits.

$3,390

The benefit is found by multiplying the average benefit for each person surveyed by the number of people surveyed, which is $11.3 X 300 = $3,390.

The college should not complete the project because the marginal cost: $4,400 is more than the marginal benefit: $3,390.

3 0
3 years ago
What is the value today of $1,300 per year, at a discount rate of 9 percent, if the first payment is received 8 years from now a
mars1129 [50]

Answer:

$6,226.52

Explanation:

Present value is the sum of discounted cash flows

Present value can be calculated using a financial calculator

Cash flow year 1 to 7 = 0

Cash flow each year from year 8 to 25 = 1300

I = 9%

PV = $6,226.52

To find the PV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

5 0
2 years ago
Which of the following statements about valuing a firm using the APV approach is most CORRECT A. The value of operations is calc
Alenkinab [10]

Answer:

D) The value of operations is calculated by discounting the horizon value, the tax shields, and the free cash flows before the horizon date at the unlevered cost of equity.

Explanation:

The adjusted present value method is very similar to the NPV method, but with some "adjustments". It determines the NPV of a project if it was financed solely with equity. Then it includes the tax benefits that could be obtained if the project was financed by debt. The benefits are basically lower taxes due to interest payments that reduce taxable income.

The APV  uses the company's WACC as the discount rate.

6 0
3 years ago
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