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3 years ago

Using conversion cost per equivalent unit is appropriate for many business that use process costing because:

1 answer:

7 0

<span>I am definitely sure that correct answer is: Using conversion cost per equivalent unit is appropriate for many business that use process costing because d</span>irect labor and factory overhead enter the production process at the same rate. To calculate cost per equivalent unit you need to the total cost of production and divide by the number of units.

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Gladstone Corporation is about to launch a new product. Depending on the success of the new product, Gladstone may have one of f

Andrews [41]

Answer: SEE EXPLANATION

Explanation:

Given the following ;

Values depending on Success

$150M, $135M, $95M, $80M

Risk free rate = 5% = 0.05

Pervebtage to be lost in case of bankruptcy = 25% = 0.25

A.) 0.25 × [( 150 + 135 + 95 + 80) ÷ 1.05] = $109.52 million

Assume a zero-coupon debt with a $100million face value

B.) 0.25 × [( 100 + 100 + (95×0.75) + (80×0.75)) ÷ 1.05] = $78.87 million

C.) Yield to maturity (YTM)

(100M÷78.87M) - 1

1.2679 - 1 = 0.2679 = 26.79%

Expected return = 5%

D.) Equity value

0.25 × [( 150 + 135 + (95×0.75) + (80×0.75)) ÷ 1.05] = $99.11 million

E.) share if no debt is issued

109.52 ÷ 10 = 10.95 per share

F.) Share price if debt of $100M is issued

99.11 ÷ 10 = 9.91 per share

The price differs because bankruptcy cost will Lower the share price.

8 0

3 years ago

A Chinese exporter sells $200,000 of toys to a French importer. The Chinese exporter requires the French importer to obtain a le

GuDViN [60]

Answer:

0.0416483 or 4.16%

Explanation:

Annual percentage rate, APR = 4%

Value of toys sold = $200,000

Note period = 90 day

N = 365 ÷ 90

= $200,000 × [1 - (0.04 × 90/360)]

= $198,000

Effective annual financing cost:

$=(\frac{Value\ of\ toys\ sold}{Calculated\ value} )^{\frac{365}{90} }-1$

$=(\frac{200,000}{198,000} )^{\frac{365}{90} }-1$

= 1.0416483 - 1

= 0.0416483 or 4.16%

4 0

3 years ago

A partial listing of costs incurred during March at Febbo Corporation appears below: Factory supplies $ 9,000 Administrative wag

lana [24]

Answer:

$293,000

Explanation:

The computation of the product cost is shown below:

= Direct material + direct labor + factory supplies + factory depreciation + indirect labor

= $126,000 + $99,000 + $9,000 + $33,000 + $26,000

= $293,000

The factory supplies + factory depreciation + indirect labor = manufacturing overhead

All other cost are not relevant for the computation part. Hence, ignored it

6 0

3 years ago

Chun Hei is carrying out a marketing research study. Even after seeking all reasonable available secondary data sources, she has

tekilochka [14]

Answer:

The correct word for the blank space is: primary.

Explanation:

Primary data collection takes place when data is collected by researchers from direct sources using for that purpose surveys or interviews. Typically, primary data collection gathers the questions formulated on <em>secondary data</em> research since that is the basic step carried out for the data collection process.

8 0

3 years ago

Dream Homes is an appliance store. It recently launched its own brand of freezers in order to build customer loyalty. The store

Alex787 [66]

The Pricing strategy which Dream Homes implemented is known as Price lining (Option A) which categorized the prices accordingly with the financial soundness of the customers.

Explanation:

The demand for more goods always plays a vital role in ensuring good sales. The likes of the customers towards particular products depend upon the nature of unique features and its fine quality. By capturing the pulse of the purchasing power of the customers, the business ventures fixed the prices according to the level of economical weaker sections, middle, and high-income groups.

In this case, Dream Homes fix the price of freezers by measuring the ability of customers' to buy them without compromising with the customers requirements. Dream Homes uses the price lining method to gain customers' reputation by selling the products accordingly with their status of income level.

8 0

3 years ago