Answer and Explanation:
The computation is shown below:
a. The break even quantity is
= Fixed cost ÷ (selling price per unit - variable cost per unit)
= $26,000 ÷ ($1 - 0.35)
= $26,000 ÷ 0.65
= 40,000
b. The price is
Let us assume the price per pen be x
As we know that
Profit = Revenue - costs
$16,000 = (x)(41,000) - $26,000 - .35(41,000)
$16,000 = 41,000x - 40,350
$56,350 = 41,000x
x = $1.37
Answer:
A) Credit to Common stock $2,000
C) Credit to Additional paid-in capital $8,000
Explanation:
The journal entry to record the issuance of stocks should be:
Dr Cash 10,000
Cr Common stock 2,000
Cr Additional paid in capital 8,000
Whenever a corporation issues new stocks, it must increase common stock account using the stocks' par value. Any additional amount must be recorded under the additional paid in capital account. Both accounts are part of the stockholders' equity and have credit balances.
Physical context or setting of the speech may refer to the location of the event. It is a good idea to go there prior to your speed h and see how it is arranged so you are prepared for that environment.
Answer:
The project return is lower than the minimum accepted of 15% thus not profitable for the company
Net Present Value -1.279,86
Explanation:
<u>Loan Present value</u>
PMT of the loan:
PV 65,000
time 4
rate 0.12
C $ 21,400.238
Present value at MARR:
C $21,400.24
time 4 years
rate 0.15
PV $61,097.2175
<u>Salvage value:</u>
Salvage $9,000
time 9 years
rate 0.15000
PV 2,558.36
<u>Cost savings present value:</u>
Cost savings per year: 25,000
less maintenance expenses (13,000)
net cash flow 12,000
C $ 12,000
time 9 years
rate 0.15
PV $57,259.0070
Net Present Value
PV cost savings + PV salvage - PV loan payment
57,259 + 2,558.36 - 61,097.22 = -1.279,86
Answer:
Current stock price = $24.23
Explanation:
Stock price under Discounted Model:
P0 = D1 \div(Ke - g)
P0 = Current Market price of the share
g = Growth rate = 5.0%
Ke = Cost of equity = 11.5% p.a
D1 = Expected dividend = $1.50 (1 + 0.05)= $1.575
P0 = $1.575 / (11.50% - 5.0%)
Current stock price = $24.23