Answer:
1.- For sofa it can pay at most 60 dollars per hours
2.- 17.5 per hours
3.- It should. It will create additional gains.
Explanation:
- Recliner Sofa Love Seat
Sales 1,400 1,800 1,500
variable 800 1,200 1,000
Contribution 600 600 500
Labor Hours 8 10 8
Contribution \: per \: hour 75 60 62.5
1.- Contribution per hour 60 dollars for SOFA
it can pay up to this amount.
2.-
contribution per hour - labor cost per hour = net
62.5 - 45 = 17.5 Contribution Margin per hour
3.-
It should hire it. t is generating additional profit.
Answer:
1. Year 1 expected value = $32.24
2. Required rate of return = 7.35%
Explanation:
1. For computing the stock price which is expected 1 year from now is shown below:
= Current Price × (1+rate)^number of years
= $31 × (1+0.04)^1
= $31 × 1.04
= $32.24
Hence, the expected 1 year value of stock price is $32.24
2. The required rate of return is computed by using an formula which is shown below:
= (Current Year dividend ÷ Current stock price)+ growth rate
where,
current year dividend is = D1
And, D1 = DO × (1+g)
where,
DO = previous dividend share
g = growth rate
So, $1 × (1+0.04)
= $1 × 1.04
= $1.04
Now apply these values to the above formula
So, required rate of return is equals to
= ($1.04 ÷ $31) + 0.04
= 7.35%
Hence, the required rate of return is 7.35%
The answer, on the point of view of Boster, is A. Debit notes receivable and credit accounts receivable (not payable i think). This is from the point of view of Boster. So to Boster, he will have an accounts receivable by Martin company. So what Martin did is that he offered a promissory note to Boster. This will increase Boster's notes receivable. At the same time, this will also lessen Boster's accounts receivable since this turned into a notes receivable.
The three main forms of legal ownership of a business is Coporation, Partnership, and Sole proprietorship
