Answer:
$3.32 per cut
Explanation:
The computation of the activity rate for the cutting department is shown below:
Activity rate is
= Total activity cost ÷ Total cuts
= $154,546 ÷ 46,550 cuts
= $3.32 per cut
We simply applied the above formula so that the correct value could come
And, the same is to be considered
hence, the first option is correct
The first step is to set objectives
Answer:
C) Dividing income before interest expense and income taxes by interest expense.
Explanation:
Times interest earned is the interest coverage ratio. This explains how many times a company is able to cover its interest expense as relative to its income.
This is calculated by Dividing income before interest expense and income taxes by the interest incomes. This basically conveys signals about the performance of the company and its solvency by finding a performance measure of how many times a company can pay off its debt obligations.
A higher interest times earned metric means a healthier firm.
Hope that helps.
Answer:
Price Elasticity of Demand is -4
Explanation:
We can see the graph and easily calculate the Q1 which is 120 units at P1 $140 and Q2 which is 80 units at P2 $160 price.
The starting point formula for calculating price elasticity of demand is given as under:
Price Elasticity of Demand = (ΔQ / Q2) / (ΔP / P2)
Here
ΔQ = Q1 - Q2 = 120 - 80 = 40 units
ΔP = P1 - P2 = 140 - 160 = - $20
By putting value in the above equation, we have:
Price Elasticity of Demand = (40 Units / 80 Units) / (-$20 / $160)
Price Elasticity of Demand = -4
