Answer:
(a) Last year taxation is paid through the current year provision
Answer:
The answer is: 1,375 balloon bundles
Explanation:
We can calculate how many balloon bundles must be sold using the following formulas:
- contribution margin per unit = Selling price per unit – Variable cost per unit
- Units = (Fixed costs + Target profit) / (contribution margin per unit)
Contribution margin per unit = $10 - $2 = $8
units = ($5,000 + $6,000) / $8 = $11,000 / $8 = 1,375 units
Answer:
c. difference between total variable costs and total costs at a particular activity level
Explanation:
The high low method consists of calculating costs on the basis of highest & lowest activity & comparing their corresponding total costs.
Variable cost per unit is found by : change in cost divided by the change in activity level for two points
Variable Cost per unit = <u>Highest activity cost - Lowest activity cost </u>
Highest activity units - lowest activity units
Fixed Cost is thereafter calculated by subtracting Total Variable Costs from Total Cost
Fixed Cost = Highest Activity Total Cost - [ (Variable cost per unit) x (highest activity units)
Fixed Cost = Lowest Activity Cost - [ (Variable cost per unit) x (lowest activity units)]
Answer:
discount yield=7.17%
bond equivalent yield=7.34%
effective annual yield =7.64%
Explanation:
Discount yield =discount /face value*360/t
where t is the number of days to maturity
discount =face value -issue price
discount=100-97.63
discount=2.37
discount yield =2.37/100*360/119
discount yield=7.17%
bond equivalent yield=(1+periodic yield)^360/t-1
periodic yield =discount/face value=2.37/100=2.37%
bond equivalent yield =(1+2.37%)^(360/119)-1
bond equivalent yield=7.34%
effective annual yield=(1+HPY)^365/t-1
Holding period yield (HPY)=discount/price=2.37/97.63
HPY=2.43%
effective annual yield=(1+2.43%)^(365/119)-1
effective annual yield =7.64%