Answer:
the annual inventory turns for your company is 4 times
Explanation:
The computation of the annual inventory turns is shown below:
= Annual cost of goods sold ÷ average inventory
= $280 million ÷ $70 million
= 4 times
Hence, the annual inventory turns for your company is 4 times
Therefore the above formula should be applied and the same should be used
Answer:
-$64000
Explanation:
The computation of net total is as shown below:-
Direct material = $11.30
Direct labor = $22.70
Variable manufacturing overhead = $1.20
Fixed manufacturing overhead ($24.70 - $21.90) = $2.80
Total Relevant cost = Direct material + Direct labor + Variable manufacturing overhead + Fixed manufacturing overhead
= $11.30 + $22.70 + $1.20 + $2.80
= $38.00
Total Cost of Making = Relevant cost per unit × Number of Unit + Opportunity contribution margin lost
= $38 × 40,000 + $264000
= $1,784,000
Total Cost of Buying = $46.20 × 40,000
= $1,848,000
Net total = Total Cost of Making - Total Cost of Buying
= $1,784,000 - $1,848,000
= -$64000
Answer:
P0 = $14.4683 rounded off to $14.47
Explanation:
To calculate the market price of the stock today, we will use the constant growth model of DDM. The constant growth model calculates the values of the stock today based on the present value of the expected future dividends from the stock. The formula for price today under this model is,
P0 = D0 * (1+g) / (r - g)
Where,
- D0 is the dividend today
- g is the constant growth rate
- r is the required rate of return on the stock
We first need to calculate r using the CAPM equation. The equation is,
r = rRF + Beta * (rM - rRF)
Where,
- rRF is the risk free rate
- rM is the return on market
r = 0.06 + 1.6 * (0.147 - 0.06)
r = 0.1992 or 19.92%
Using the price formula for DDM above, we can calculate the price today to be,
P0 = 1.9 * (1+0.06) / (0.1992 - 0.06)
P0 = $14.4683 rounded off to $14.47
Answer:
1. Mary McFly invents a time machine and gets legal protection from competition. Patent
2. Main Line Utilities can operate at a lower cost than multiple electric companies. Economies of Scale
3. The author of Economics for Dumbbells is given exclusive rights to produce this book. Copyright
4. Your city council gives All Talk Communication Services exclusive rights to build high speed internet infrastructure in your town.Government licencing
5. DeJeers Jewelers owns 80% of the world's diamond mines. Control over Resources
Explanation:
A monopoly is when there's only one firm operating in an industry.
Economies of scale is cost reduction that accures to a firm as a result of its large scale production. For example, a supplier might give a producer a discount for buying in bulk.
A patent is when the government or an agency of the government gives the right to produce an invention or a good for a set period, others are usually excluded making, using or selling the invention.
Copyright gives the owner of an intellectual property the exclusive right to make copies of a creative work, usually for a limited time.
If a firm has exclusive access to resocurces, it is possible for the firm to prevent other firms from entering into the industry and thus retain monopoly power.
I hope my answer helps you
Answer:
a) A gain will be recognized in the consolidated income statement in 2019.
Explanation:
As the land is sold to a subsidiary it will be considered intra-entity thus, eliminated in the consolidated income statement of 2016
the gain of both entities (from parent to subsidiary and to subsidiary to third party) will be recognized at 2019 when an external entity purchases the land
