Answer:
Sell now, the company will be better off by $18200
Explanation:
The computation is shown below:
Sales value after processing the product (26,000 × $14) $364,000
Less: sales value (26,000 × $8) $208,000
Increase in advantage due to processing $156,000
Less: processing cost ($174,200)
Net disadvantage of processing the product ($18,200)
As we can see the final answer comes in negative which means the product should be sold now
Answer:
Explanation:
Overhead allocated to Product X = Department A overhead cost+ Department B overhead cost
= $51,157.84+$5755.62=
= $56,913
Calculations:
Using a single-driver allocation system, with direct labor hours as the driver, how much overhead was allocated to Product X:
Department A's Overhead rate per labor hour = Overhead costs/Total direct labor hours = $4300000/60000 hours = $71.66 per hour
Overhead (Department A) = $71.66per hour*724 labor hours
= $51,157.84
Department B's Overhead rate per labor hour = Overhead costs/Total direct labor hours = $2200000/60000 hours = $36.66 per hour
Overhead (Department A) = $36.66 per hour*157 labor hours
= $5755.62
Answer: The correct answer is "C. produce because revenue of $1 comma 000 is greater than fixed costs.".
Explanation: The firm should produce because the revenue of 1000 is enough to cover the fixed costs and part of the variables (1000 - 800 - 600 = (-400)) so that the loss is less than if it stopped producing despite the avoidable costs (800 - 350 = 450) since if it stopped producing it would have a loss of $ 450 and producing it would have a loss of $ 400.
Based on the scenario analysis on stocks and bonds, we know the following:
- Treasury bonds will provide a higher return in a recession than in a boom.
- The expected return of Bonds is 9.8% and that of stocks is 11.6%.
- The standard deviation of Bonds is 9.24% and that of stock is 11.76%.
<h3>What does the scenario analysis on Bonds and Stocks show?</h3>
In a recession, Bond returns will be 15%. This is much higher than Bond returns in a boom of only 5%.
The expected return on bonds will be:
= ∑(Probability of Scenario x Returns in scenario)
= (0.30 x 15%) + (0.60 x 8%) + (0.10 x 5%)
= 9.8%
The expected return on stocks will be:
= (0.30 x -6%) + (0.60 x 18%) + (0.10 x 26%)
= 11.6%
Using a spreadsheet, you can input the expected returns of the stocks and the bonds to find the standard deviation to be 9.24% and 11.76%, respectively.
Find out more on stock expected returns at brainly.com/question/18724022.
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When starting a small business it is very important to remember to take into account your employees point-of- view
