Answer:
-3 million dollars
Explanation:
we have EVA = economic value added
to ge the EVA, we use this formula :
(operating return on the assets - cost of the total capital) multiplied by the total assets
total assets = 100 million
operating return = 12 percent
cost of capital = 15 percent
the EVA = 12% - 15% * 100000000
= -0.03 * 100000000
= -3,000,000 dollars
b. The loss of the value of the shareholder is happening even though the firm is earning ROI that is more than the average firm in the industry.
Answer:
Cost of goods manufactured= $3,120
COGS= $2,750
Explanation:
<u>To calculate the cost of goods manufactured, we need to use the following formula:</u>
cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP
Cost of goods manufactured:
beginning WIP= 0
direct materials= 2,200
Direct labor= 1,000
Factory overhead= 520
Ending work in process= 600
Cost of goods manufactured= $3,120
<u>Now, we can determine the cost of goods manufactured:</u>
COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory
COGS= 0 + 3,120 - 370
COGS= $2,750
Answer:
$44
Explanation:
Given that
Direct material cost = $17
Direct labor cost = $10
Variable manufacturing overhead = $17
The computation of unit product cost using variable costing is shown below:-
Unit product cost = Direct material cost + Direct labor cost + Variable manufacturing overhead
= $17 per unit + $10 per unit + $17 per unit
= $44
Therefore for computing the unit product cost we simply added the direct material cost, direct labor cost and variable manufacturing overhead.
Answer:
The answer is: D) Risk is a measure of the uncertainty surrounding the return that an investment will earn.
Explanation:
Investment risk refers to the probability of losing an investment. It measures the uncertainty level of earning returns from an investment.
When an investor anticipates a higher risk, he will expect higher returns. On the contrary, low risk investments (e.g. T-Bills) offer very low yields.
Answer:
It should process further as increases the contribution of the firm by 10 dollars
Explanation:
<u>rough-cut board:</u>
sales price: 440
unit cost: (315)
contribution 115
<u>finished-cut board:</u>
sales price 600
cost (465)
contribution 135
<u>difficerential analysis:</u>
600- 440 = 160 increase in sales
465 - 315 =<u> 150 </u>increase in cost
10 increase in contribution