Answer:
Minimum selling price is $ 37
Explanation:
Computation of minimum selling price
Direct materials per unit $ 15
Direct labour per unit - existing $ 19
Additional for modification <u>$ 3</u>
Direct Labor per unit <u>$ 22</u>
Variable cost per unit $ 37
Since the Company has sufficient idle capacity to produce the additional order, no incremental fixed manufacturing capacity is considered.
The minimum selling price should be one which covers the variable costs ( modified for labor increase)
Answer:
The differential revenue for this decision is $95000
Explanation:
Differential Revenue: In differential revenue it shows a difference between two projects revenues. Irrespective of whatever information is given in the question.
It is computed to check that how much increment or decrements is done as compare to previous year, or between projects.
So,
Differential revenue = Alternative B Projected Revenue - Alternative A Projected Revenue
= $310,000 - $215,000
= $95,000
Hence, the differential revenue for this decision is $95000
Answer:
a. The effective price received by sellers is $0.40 per bottle less than it was before the tax.
Explanation:
When government imposes tax on a product, a seller's margin on such a product falls which the seller tries to recover from the buyer by raising the price of the product.
In the given case, $1 is tax payable to government out of which the seller recovers $0.60 from the buyer via increased price. So, the remaining $0.4 tax is being paid by the seller out of his own pocket.
Effective price received refers to net amount received by the seller after deducting expenses and taxes. So, in the given case, the seller now receives $0.4 less per bottle than the receipts before such tax was imposed.
They could probably make it into a game, "Whoever recycles the most gets a trip/prize??" Honestly, the only way to get kids to do things is rewards.. its the difficult truth.
Answer:
The current value of a perpetuity is based more on the discounted value of its nearer (in time) cash flows and less by the discounted value of its more distant (in the future) cash flows.
Explanation:
The perpetuities can becalculate as follow
C/rate = Perpetuities
the reasoning behind this formula:
If we calculate limit whe ntime is infite,
because at more time 1 + r gets closer and closer to 0
we get on the dividend
1 - 0
So we have C x 1/i = C/i
Next part would be why the first cash flow is more relevant than the subsequent cash flow:
Here if time increases, then the divisor get closer to ∞ so we have
P ( a constant) /∞ = 0
So the first cashflow is more relevant than the more distant cash flow
