Answer: b. $20,150 decrease
Explanation:
First we would need to calculate the Dividend per share.
We will get that by taking 65% of the Par Value of the Stock.
= 0.01 * 0.65
= $0.0065 is the dividend per share
Multiplying by the total amount of shares outstanding we have,
= 3,100,000 x 0.0065
= $20,150
Seeing as this figure would come from the Retained earnings, we can say that Retained Earnings will reduce by $20,150.
Answer:
Sales price =$405
Explanation:
A company should process further a product if the additional revenue from the split-off point is greater than than the further processing cost.
Also note that all cost incurred up to the split-off point are irrelevant to the decision to process further .
$
Sales revenue after the split-off point y
Sales revenue at the split-off point (280×20) (5,600)
Further processing cost (40× 20)+ 500 <u>(1,300) </u>
Net advantage from further processing 1,200
y-5600-1300=1200
y= 8,100
Sales price= Sales revenue after the split-off point/Number of units
Sales price = 8,100/20 =$405
Sales price =$405
Answer: $20,000
Explanation:
From the question, we are told that Liddy Corp. began constructing a new warehouse for its operations in the current year and that Liddy incurred interest of $10,000 on a working capital loan, and an interest on a construction loan for a warehouse of $70,000. The interest that was computed on the average accumulated expenditures for the warehouse construction was $60,000.
To calculate the amount of interest that Liddy should expense for the year, we add the $10,000 Liddy interest that Liddy incurred on a working capital loan plus the interest on the construction loan for the warehouse of $70,000. We then subtract the expenditure of $60,000 from the value gotten. This will be:
= $10,000 + $70,000 - $60,000
= $20,000
The amount of interest should Liddy expense for the year is $20,000.
Answer:
$5
Explanation:
If Premier Co. incurs a unit-level cost of $490 per unit
Product design cost = $50000
Facility-level cost = $100000
No of units produced annually = 10000
Product design cost/unit = $50000/10000 = $5
Facility-level cost/unit = $100000/10000 = $10
Hence total production cost per unit = $490 + $5 + $10 = $505
However, the supplier is willing to produce the bench at $500 per unit
Thus avoidable production cost for 1 bench = $505 - $500 = $5