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Arte-miy333 [17]
3 years ago
13

Kent Manufacturing produces a product that sells for $50.00 and has variable costs of $24.00 per unit. Fixed costs are $260,000.

Kent can buy a new production machine that will increase fixed costs by $11,400 per year, but will decrease variable costs by $3.50 per unit. Compute the contribution margin per unit if the machine is purchased.
Business
1 answer:
soldi70 [24.7K]3 years ago
7 0

Answer:

$29.50

Explanation:

Contribution margin = price - variable cost

Variable cost if machine is purchased = $24.00 - $3.50 = $20.50

= $50.00 - $20.50 = $29.50

I hope my answer helps you

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Which of the following statements is most accurate concerning delivering negative messages.
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Answer:

The correct answer is letter "C": Experienced communicators sometimes struggle with the delivery of negative news.

Explanation:

Providing negative messages is not an easy task for inexperienced or experienced communicators. The problem relies on how sensitive the audience could be while receiving bad news. Experienced communicators may struggle in conveying a message that could satisfy the different personalities of the audience to minimize the negative impact of the bad news on them.

4 0
3 years ago
Visit a website for a company that sells products online. Then go to that company‘s corporate website. Compare the company’s pro
kipiarov [429]

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3 years ago
On January 1, Andrea reviews her investment portfolio and finds out that she has had a very profitable year. To offset some of h
butalik [34]

Answer:

$5,000 realized, but not recognized loss

Explanation:

Based on the above information given we were told that two years earlier She purchased some shares for the amount of $15,000 in which in order for her to offset few of her gains she sells those 100 shares of Bear Corporation for the amount of $10,000 making her to REALIZED the amount of $5,000 ($15,000-$10,000) reason been that a loss will be realized instantly in a situation were an assets is sold out for a loss.

Therefore the tax consequences to Andrea this year will be the amount of $5,000 Realized, but not recognized loss.

8 0
3 years ago
Sapp Trucking's balance sheet shows a total of noncallable $45 million long-term debt with a coupon rate of 7.00% and a yield to
spin [16.1K]

Answer:

The difference between two WACC is 1.2%.

Explanation:

As we know that

WACC = Ke * Ve / (Ve + Vd (1-Tax))    +   Kd * Vd*(1-tax) / (Ve + Vd*(1-Tax))

Using the Book Value Method:

WACC =             14% *$65 / ($65m + $45m (1-40%))

                    + 6% *$45m*(1-.4) / ($65m + $45m (1-40%))

WACC = 10%  + 1.8% = 11.8%

<u>Using the market value method:</u>

Market Value of Common Stock = Common Shares * Market value per share

Market Value of Common Stock = 10 million * $22.5 per share = $225m

WACC =             14% *$225 / ($225m + $50m (1-40%))

                    + 6% *$50m*(1-.4) / ($225m + $50m (1-40%))

WACC = 12.35%  + 0.7% = 13%

The difference between two WACC is 1.2%.

4 0
4 years ago
What is the return on common stockholdersâ equity based on the following: Beginning Common Stockholdersâ Equity: $10,317,000 End
Slav-nsk [51]

Answer:

13.28%

Explanation:

return on stockholders' equity = net income after taxes and preferred stock dividends / average stockholders' equity

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return on stockholders' equity = ($1,429,000 - $36,000) / $10,489,500 = 13.28%

5 0
4 years ago
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