Answer:
C. 2 percent.
Explanation:
The computation of the annual real rate of interest is presented below:
Provided that
Nominal annual interest rate = 8%
Inflation rate = 5%
So, the annual real rate of interest is
Real rate of return = {( 1 + nominal annual rate of return) ÷ ( 1 + inflation rate)} - 1
= {( 1 + 0.08) ÷ ( 1 + 0.05)} - 1
= 2%
Answer:
The correct answer is d. $0.31 per client-visit; $24,766 per month.
Explanation:
The costs can be of fixed nature or a variable nature or of a mixed nature. A mixed costs contains a component of both fixed and variable costs. The high-low method is used to calculate the variable component per unit of a mixed cost. Th formula for high low method is:
Variable cost per unit = (Highest activity cost - Lowest activity cost) / (Highest activity level - Lowest activity level)
the highest activity is in June, 13400 client visits and the highest cost is also of this activity. The lowest activity is in August, 11207 client visits and the lowest cost belongs to this activity.
Variable cost per unit = (28920 - 28235) / (13400 - 11207)
Variable cost per unit = $0.31 rounded off to two decimal places
The fixed cost = Total cost - total variable cost
Taking 13400 activity,
The fixed component is = 28920 - (0.31 * 13400) = $24766 per month
Thus, the correct answer is d.
Answer: 49.10 pee unit
Explanation:
Direct materials = $14.30
Add: Direct labor = 23.90
Add: Variable manufacturing overhead = 3.00
Add: Avoidable overhead = 28.30 - 28.40 = 0.10
Avoidable cost = 41.10
The maximum amount that the company should be willing to pay an outside supplier per unit for the part if the supplier commits to supplying all 53,000 units required each year will be:
= 41.10 × 53000 + 424,000 / 53000
= 49.1 per unit
I am not Sure What the question is explain a little better
Answer:
The correct answer is budget slack.
Explanation:
Budget slack occurs in a company when one or more people with budgetary responsibility create a budget that overestimates expenses and / or underestimates projected income or income.
Intentional budget slack can occur because a manager feels under the weapon to "make their numbers", often in response to previous quarters where revenues fell below projections and, more importantly, did not meet expectations of the owners or shareholders.
