How do you get money

Given the following cost and activity observations for Smithson Company’s utilities, use the high-low method to calculate Smiths

Tema [17]

Answer:

c. $1,600

Explanation:

Using high low method we have

Highest cost = $75,000 for 29,000 hours in the month of February.

Lowest Cost = $52,200 for 20,000 hours in the month of January.

Variable Cost per unit = $\frac{Change \: in \: cost}{Change \: in \: hours} = \frac{75,000 - 52,200}{29,000 - 20,000} = $2.533$

Or

$52,200 = 20,000 V + F

$75,000 = 29,000 V + F

$22,800 = 9,000 V

$2.53 = V

20,000 V = $50,600

$52,200 - $50,600 = $1,600

Fixed Cost = $1,600

7 0

3 years ago

Oriole Corp. is a fast-growing company whose management expects it to grow at a rate of 24 percent over the next two years and t

Salsk061 [2.6K]

Answer:

1.What is the dividend for the 1st year?

$2.67

2.What is the dividend for the 2nd year?

$3.31

3.What is the dividend for the 3rd year?

$3.90

4.What is the dividend for the 4th year?

$4.60

5.What is the dividend for the 5th year?

$5.43

6.Compute the present value of these dividends if the required rate of return is 14 percent.

1. $2.34

2. $2.54

3. $2.63

4. $2.73

5. $2.82

Explanation:

Last Dividend paid = $2.15

Growth rate:

First two years = 24%

Following three years = 18%

FV of Dividend = PV ( 1 + g )^n

1.

Dividend for the 1st year = $2.15 x ( 1 + 24% )^1 = $2.15 x ( 1 + 0.24 )^1 = $2.15 x ( 1.24 )^1 = $2.67

2.

Dividend for the 2nd year = $2.15 x ( 1 + 24% )^2 = $2.15 x ( 1 + 0.24 )^2 = $2.15 x ( 1.24 )^2 = $3.31

3.

Dividend for the 3rd year = $3.31 x ( 1 + 18% )^1 = $3.31 x ( 1 + 0.18 )^1 = $3.31 x ( 1.18 )^1 = $3.90

4.

Dividend for the 4th year = $3.31 x ( 1 + 18% )^2 = $3.31 x ( 1 + 0.18 )^2 = $3.31 x ( 1.18 )^2 = $4.60

5.

Dividend for the 5th year = $3.31 x ( 1 + 18% )^3 = $3.31 x ( 1 + 0.18 )^3 = $3.31 x ( 1.18 )^3 = $5.43

6.The present value of these dividends

Present value of dividends can be calculated by following formula:

PV = FV / ( 1 + r )^n

FV = Dividend for the year

r = rate of return = 14%

n = number of years

1. PV = $2.98 / ( 1 + 0.14 )^1 = $2.98 / ( 1.14 )^1 = $2.98 / 1.14 = $2.34

2. PV = $3.31 / ( 1 + 0.14 )^2 = $3.31 / ( 1.14 )^2 = $3.31 / 1.2996 = $2.54

3. PV = $3.90 / ( 1 + 0.14 )^3 = $3.90 / ( 1.14 )^3 = $3.90 / 1.481544 = $2.63

4. PV = $4.60 / ( 1 + 0.14 )^4 = $4.60 / ( 1.14 )^4 = $4.60 / 1.68896 = $2.73

5. PV = $5.43 / ( 1 + 0.14 )^5 = $5.43 / ( 1.14 )^5 = $5.43 / 1.925416 = $2.82

5 0

3 years ago

Wilcox Company has budgeted sales volume of 60,000 units and budgeted production of 54,000 units, while 10,000 units are in begi

VARVARA [1.3K]

Answer:

4,000 units

Explanation:

Given that

Sales volume = 60,000 units

Budgeted production = 54,000 units

Beginning finished goods = 10,000 units

The computation of units for ending finished goods inventory is computed below:-

Budgeted production = Ending finished goods + Sales volume - Beginning finished goods

54,000 = Ending finished goods + 60,000 - 10,000

54,000 = Ending finished goods + 50,000

= 4,000 units

6 0

3 years ago

In a discussion of economics, which of the following would exert the most influence on an individual firm's decision to hire wor

9966 [12]

Answer:

(B) the macroeconomy

Explanation:

The condition of the macroeconomy would exert the most influence of a firm's decision to hire more workers. As economic growth increases and demand grows, the firm is likely to hire more workers to meet increasing demand for its goods. On the other hand, in an economic recession, the firm is likely to hire less and even lay off its existing workers as demand for its goods reduces.

Option A is incorrect as a firm would not hire more workers even at low wage levels if the economy is in a recession. Option C is incorrect as the level of a firm's income would likely not be considered in its hiring decision if demand for its goods was very high. Option D is incorrect as the household income would likely not be considered by the firm in its hiring decision.

8 0

3 years ago

Byrd Company decided to analyze certain costs for June of the current year. Units started into production equaled 14,000 and end

Molodets [167]

Answer: Option (C) is correct.

Explanation:

Units Started into the production = 14,000 Units

Ending work in process = 2,000 units

Transferred Units = Units in the starting - Ending work in process

= 14,000 units - 2,000 Units

= 12,000 Units

Equivalent units = Transferred units + Ending work in process in units × % of Completion

= 12,000 Units + 2,000 Units × 25% complete

= 12,000 + 2,000 × 0.25

= 12,000 units + 500 units

= 12,500 units

Total Conversion cost = $52,500

$Conversion\ cost\ per\ Equivalent\ unit=\frac{Total\ Conversion\ cost}{Equivalent\ Units}$

$Conversion\ cost\ per\ Equivalent\ unit=\frac{52,500}{12,500}$

= $4.2

5 0

3 years ago