Answer: Yes. AudioCable should buy a new equipment
Explanation:
Audiocables Inc. without new equipment:
Selling price: $1.40
Variable cost: $0.50
Fixed cost: $14,000
Sales: 30000 units
Total cost = Fixed cost + Variable cost
= $14000 + ($0.50 × 30000)
= $14000 + $15000
= $29000
Revenue = Sales × Selling price
= 30000 × $1.40
= $42000
Profit = Revenue - Total Cost
= $42000 - $29000
= $13000
Audiocables Inc. with new equipment:
Selling price: $1.40
Variable cost: $0.60
Fixed cost: $14,000 + $6000 = $20000
Sales: 50000 units
Total cost = Fixed cost + Variable cost
= $20000 + ($0.60 × 50000)
= $20000 + $30000
= $50000
Revenue = Sales × Selling price
= 50000 × $1.40
= $70000
Profit = Revenue - Total Cost
= $70000 - $50000
= $20000
From the calculations made, AudioCable buy a new equipment as profit generated is more.
Answer:
business activities in India
<h3>1) Manufacturing - </h3>
- When product is manufacture or made to that it cn be sold in Market
<h3> </h3><h3>2) storage - </h3>
- After the product is ready it required some space to store until it would sold in the market
<h3>3) transporting</h3>
- as per the demand it will transport from one place to another
<h3>4) financing - </h3>
- It requires some money to meet the expense before solding a product
<h3>5) marketing</h3>
- to let people know about the product so that more products will be sold
There are other activities also such as managing, accounting etc
Market Price =$36.09,is one share of this stock worth at a discount rate of 13.3 percent.
<h3>Common stock: What does that mean?</h3>
A security that symbolizes ownership in a firm is called common stock. Common stock owners choose the executive board and cast ballots for corporate rules. This kind of stock ownership frequently offers better long-term rates of return. Common stock is not subject to either assets or liabilities.
<h3>How are shares & common stock different from one another?</h3>
Definition: The term "stock" refers to the holder's interest in one or more businesses. A single share of interest in a firm is referred to as a "share" in contrast. For instance, if X has stock investments, X may have a collection of shares from various companies.
<h3>Briefing:</h3>
Market price = dividends per share
P0 = $4.80/.133
P0 = $36.09
Market Price =$36.09
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Answer:
January 2, 2020
Dr Cash $52,000
Cr Sales Revenue $52,000
December 31, 2020
Dr Warranty expense $890
Cr Cash $890
December 31, 2020
Dr Warranty expense$640
Cr Warranty Liabiltiy $640
Explanation:
Preparation of the journal entry to record this transaction on January 2, 2020, and on December 31, 2020.
January 2, 2020
Dr Cash $52,000
Cr Sales Revenue $52,000
December 31, 2020
Dr Warranty expense $890
Cr Cash $890
December 31, 2020
Dr Warranty expense$640
Cr Warranty Liabiltiy $640
Answer:
$4.67 per share
Explanation:
The calculation of the diluted earning per share is given below:
= (Total income - preference dividends) ÷ (outstanding shares + diluted shares)
where,
Total income is $50,000
Outstanding shares is 10,000
And, the diluted shares is computed by following calculations
Amount paid towards shares = Options issued × Exercise price per share
= 1,000 × $6
= $6,000
And,
Value of options = Amount paid towards shares ÷ Current market price
= $6,000 ÷ $20
= 300
Therefore,
Diluted shares is
= Options issued - value of options
= 1,000 - 300
= 700
So Diluted Earnings per share is
= ($50,000) ÷ (10,000 + 700)
= $4.67 per share
