3 uses of money supply

On May 3, 2020, Cheyenne Company consigned 90 freezers, costing $480 each, to Remmers Company. The cost of shipping the freezers

Viktor [21]

Answer and Explanation:

The computation is shown below;

a.

Inventory Unsold in Hand (90-45) 45

Unit cost Unsold (45 × 480) $21,600.00

Shipping cost on Unit Unsold (850 ÷ 90 × 45) $425.00

Value of Inventory (21600 + 425) $22,025.00

b.

Sale value (45 × 780) $35,100.00

Less: Cost

Unit cost Sold (21600+425) -$22,025.00

Comission of Consignee (35,100 × 6%) -$2,106.00

Advertising cost -$210.00

Installation cost -$330.00

Net Profit $10,429.00

c.

Sale value (45 × 780) $35,100.00

Less: deduction made by consignee

Comission of Consignee (35100 × 6%) -$2,106.00

Advertising cost -$210.00

Installation cost -$330.00

Net Remittance made by consignee $32,454.00

5 0

3 years ago

Yeâ€™ Olde Barrel Shop sells oak barrels to a local winery. The Master Cooper would like to reduce her oak lumber inventory by d

mihalych1998 [28]

Answer:

The EOQ is 642

The reorder point is 2,699

Explanation:

In order to calculate the EOQ we would have to calculate the following formila:

EOQ=√2DS/H

According to the given data we have the following:

D = 55,000

S = 21

H=40%*purchase cost

H=0.4*14 = 5.6

Therefore, EOQ=√(2*55,000*21)/5.6

EOQ=642

To calculate the reorder point If a service level of 98% is desired during the reorder interval, we would have to use the following formula:

reorder point=dL+z√σ∧2dL+σ∧2Ld∧2

reorder point=(7*205.22)+√(2.05*√(5∧2*7)+(3∧2*205.22∧2)

reorder point=2,699

7 0

3 years ago

Nellie works as an attorney for a large consulting firm. Nellie's job is to act as an advisor to the firm's consultants, to be s

WARRIOR [948]

Nellie's position would be classified as a staff position since he working as an attorney for the same consulting firm.

<h3>Who is an attorney?</h3>

An attorney is a person or a member of the legal profession. They are licensed and qualified to represent a client in court.

Here, Nellie is providing legal support to his firm's consultant hence his position would be considered as staff.

Learn more about attorney here : brainly.com/question/14745452

#SPJ1

3 0

1 year ago

Mullineaux Corporation has a target capital structure of 70 percent common stock, 15 percent preferred stock, and 15 percent deb

Jet001 [13]

Answer:

a.

The WACC is 9.4875%

b.

The after tax cost of debt is 3.25%

Explanation:

The WACC or Weighted average cost of capital is the cost to a firm of its capital structure based on the weighted average of costs of all the components that form up its capital structure. The components in a firm's capital structure are debt, preferred stock and common stock.

WACC = wD * rD * (1-tax rate) + wP * rP + wE * rE

Where,

w represents the weight of each component in the overall capital structure
r represents the cost of each component
we multiply the cost of debt by (1 - tax rate) to take the after tax cost of debt

a.

WACC = 0.15 * 0.05 * (1-0.35) + 0.15 * 0.04 + 0.7 * 0.12

WACC = 0.094875 or 9.4875%

b.

The after tax cost of debt is calculated by multiplying the cost of debt or rD by (1 - tax rate).

After tax cost of debt = 0.05 * (1 - 0.35) = 0.0325 or 3.25%

5 0

3 years ago

Answer the following questions about the tax multiplier: Instructions: In parts a and b, round your answer to 2 decimal places.

Stolb23 [73]

Answer: -9

Explanation:

The Tax multiplier of a nation shows how much the aggregate demand of an economy will change if there is a change in taxes.

It is calculated by the formula:

= -MPC / ( 1 - MPC)

= -0.9 / (1 - 0.9)

= -9

<em>If taxes are reduced, aggregate demand would increase by 9 times. </em>

3 0

2 years ago