Answer:
Gordon Company
Overhead Cost = $150,000 + ($52 x Direct Labor Hours)
Budgeted overhead cost For next month = $150,000 + ($52 x 8000)
=$ 150,000+ 416,000
Budgeted overhead cost For next month= $ 566,000
Budgeted overhead cost For next quarter =$150,000 + ($52 x 23,000)
=$ 150,000+ 1196,000
Budgeted overhead cost For next quarter = $ 1346,000
Budgeted overhead cost For next year =$150,000 + ($52 x 99,000)
= =$ 150,000+ 5148,000
Budgeted overhead cost For next year= $ 5298,000
Answer:
A. True
B. True
C. True
D. True
E. False
F. True
Explanation:
It is true that under regional trade agreements, several countries eliminate tariffs among themselves and lower tariffs against all other countries.
It is true that regional trade agreements are consistent with GATT's most favored nation principle. GATT is an acronym for General agreement on tarrifs and trade and most favoured nation (MFN) is a status or level of treatment accorded by one state to another in international trade. The term means the country which is the recipient of this treatment must nominally receive equal trade advantages as the "most favoured nation" by the country granting such treatment (trade advantages include low tariffs or high import quotas).
It is true that the countries in the European Union (EU) keep their own tariffs with the countries outside the EU. The EU trade agreement is basically to promote trade among EU countries, not necessarily to lower tariffs for non members.
US and China have a trade agreement which lowers tarrifs and US and Canada operate a Free Trade agreement (FTA) which seeks to eliminate all tarrifs on trade between the two countries. Therefore If China wants to sell a good to Canada, it can first export it to the United States, where the tariff is lower, and then ship it duty- free to Canada.
It is false that countries who enter into a free trade area agreement maintain a common schedule of tariffs with countries outside the agreement. The agreement does not cover trade among non members.
In customs union, rules of origin are not needed. Custom unions only considers where the good is shipped from and not the originating nation.
Answer: Option B
Explanation: Economic efficiency refers to a situation when all the resources that exist in an economy are allocated in such a way that all the individuals and entities in the economy is getting the maximum utility out of them.
In an efficient economy the surplus of both consumer and supplier are maximum and any increase or decrease in resource allocation will only result in harm of the economy.
Hence from the above we can conclude that the correct option is B.
Answer:
The correct answer would be, Customer's life time Value.
Explanation:
Subaru is an automobile company who is famous for its boxer engines in the cars above 1500 cc. Subaru is a division of Japanese transportation conglomerate.
A representative of Subaru has solid relationship with a customer, Phil. Phil is such a satisfied customer that he only wants Subaru every time he goes for a new purchase. Also he refers a lot of people to Subaru. The representative determines that if Phil continue to do so, his total value to the company would be $350,000. This figure includes Phil purchases as well as the purchases made by the people which he referred to Subaru. So this means, the representative has calculated the Phil's Lifetime Value.
Answer:
c. 15.8%
Explanation:
The cost of equity is the WACC (weighted average cost of equity)
WACC formula = wE*rE + wD*rD(1-tax) , whereby
wE = weight of equity = 65%
rE = cost of equity = 20%
wD = weight of debt=35%
rD(1-tax ) = after tax cost of debt =8%
WACC = (0.65 *0.20) + (0.35*0.08)
= 0.13 + 0.028
= 0.158 or 15.8%
Therefore, the overall cost of capital is 15.8%
