Answer:
True
Explanation:
This is an income statement. Ex: Rent expenses, salaries expense, total revenues, etc.
I found this data from Table 7.3
<span>
<span>
</span><span><span>
Labor
Input
Output
</span>
<span>
0 0
</span>
<span>
1 40
</span>
<span>
2 70
</span>
<span>
3 90
</span>
<span>
4 100
</span>
<span>
5 105
</span>
<span>
6 108
Labor Cost = Labor Input x 30
Output Sales = Output x 6
Revenue = Sales - Cost
</span></span></span><span>
<span>
</span><span><span>
Labor cost
Output Sales
</span>
<span>
0 0
</span>
<span>
30 240
</span>
<span>
60 420
</span>
<span>
90 540
</span>
<span>
120 600
</span>
<span>
150 630
</span>
<span>
180 648
</span></span></span><span>
<span>
</span><span><span>
Labor
Input Output Labor cost
Output Sales
<span> Revenue</span>
</span>
<span>
0 0 0 0 0
</span>
<span>
1 40 30 240 210
</span>
<span>
2 70 60 420 360
</span>
<span>
3 90 90 540 450
</span>
<span>
4 100 120 600 480
</span>
<span>
5 105 150 630 480
</span>
<span>
6 108 180 648 468
Labor Unit 4 and 5 both have a revenue of 480. It is the maximum revenue. I think the best option would be C. 4 UNITS.
Lesser cost to the company at a maximum revenue.
</span></span></span>
Answer:
$6,900
Explanation:
When you use the incremental cost allocation method, you must rank cost activities and how they will be allocated. In this case, department 2 is the primary user, and therefore, rental costs must be allocated first to them. Rental costs will be allocated at a $25/hour rate.
Since department 1 is the next user, 100 hours will be allocated using the same rate as department 2, but the next 200 hours will be allocated at the lower $22/hour rate. Total rental cost allocation to department 1 = (100 x $25) + (200 x $22) = $2,500 + $4,400 = $6,900
Answer:
the approval was already anticipated by the market
Explanation:
This abnormal return of 0% suggests that the approval was already anticipated by the market. Meaning that the price of the Pharma company's stock had already been affected by the speculation previously and when the FDA made the announcement investors had already made their move in the market with regards to Pharma's stock. Thus causing no further move and a return of 0% to occur.
Answer:
The net present value of the machine is $5530
Explanation:
Data provided in the question:
Cost of the equipment = $84,000
Annual after-tax net income from the equipment after deducting depreciation = $3,000
Depreciation = $28,000
Useful life = 3 years
Required return on investment = 9% = 0.09
Now,
After-tax cash flow = After-tax net income + Depreciation
= $3,000 + $28,000
= $31,000
Therefore,
Net Present Value = Present value of cash flow - Investment
= ( $31,000 × PVIFA(11%, 3)
) - $84,000
= ( $31,000 × 2.5313 ) - $84,000
= $78470.3 - $84,000
= -$5529.7 ≈ - $5530
hence,
The net present value of the machine is $5530
