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3 years ago

A shift in the supply curve of bicycles resulting from higher steel prices will lead to:

Business

1 answer:

Feliz [49]3 years ago

6 0

Answer: Higher price of bicycles

Explanation: Higher steel prices will lead to a rise in the input cost of the producers of bicycles. As a result of this, the supply for bicycles will decline shifting the supply curve upward to the left. With no information given about change in the demand for bicycles, the demand curve will not change.

The net effect will be an increase in the price of bicycles.

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Collective Bargaining Westwood Industries is a company specializing in sheet metal fabrication. Most of its employees are member

Setler79 [48]

Answer:

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3 years ago

Talus Inc. is considering a financial restructuring. Talus estimates its cost of debt is 6% and its cost of equity is 15.5%. Tal

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Answer:

WACC incorrect must be selected is the correct answer to this question.

Explanation:

The weighted average cost of capital is the amount of the valuation of the security x the cost of the security concerned. Thus, if the weight of defense increases at a high rate, the total average rate of assets rises as well.

In our present scenario, the weight of equity rises (as equity increased to repay the debt), and debt decreases (as debt is redeemed) and the cost of equity is 15.5 percent, which is higher than the cost of debt by 6 percent. As a result, the weighted average cost of capital increases.

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3 years ago

Columbia Products produced and sold 900 units of the company's only product in March. You have collected the following informati

blsea [12.9K]

Answer:

Results are below.

Explanation:

Giving the following information:

Units produced and sold= 900

Sales price (per unit) $448

Manufacturing costs:

Fixed overhead 50,400

Direct labor (per unit) 35

Direct materials (per unit) 112

Variable overhead (per unit) 70 (for the month)

Marketing and administrative costs:

Fixed costs (for the month) 67,500

Variable costs (per unit) 14

a. Variable manufacturing cost= 35 + 112 + 70= $217

b. Total cost:

Total variable cost= (217 + 14)*900= 207,900

Total fixed cost= 50,400 + 67,500= 117,900

Total cost= $325,800

Total cost per unit= 325,800/900= $362

c. Total variable cost= 217 + 14= $231

d. The absorption costing method includes all costs related to production, both fixed and variable.

Absorption cost= 217 + (50,400/900)= $273

e. Prime cost= direct material + direct labor

Prime cost= 112 + 35= $147

f. Conversion cost= direct labor + unitary variable overhead

Conversion cost= 35 + 70= $105

g. Profit margin= selling price - total unitary cost

Profit margin= 448 - 362= $86

h. Contribution margin per unit= selling price - total unitary variable cost

Contribution margin per unit= 448 - 231= $217

j. Gross margin per unit= Selling price - absorption cost per unit

Gross margin per unit= 448 - 273= $175

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3 years ago

Western, Inc. is a technology consulting firm focused on Web site development and integration of Internet business applications

frosja888 [35]

Answer:

Estimated manufacturing overhead rate= $160 per direct labor hour

Explanation:

Giving the following information:

Estimated overhead= $640,000

Estimated direct labor hours= 4,000

To calculate the estimated manufacturing overhead rate we need to use the following formula:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= 640,000/4,000

Estimated manufacturing overhead rate= $160 per direct labor hour

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3 years ago