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Answer:
$3,762
Explanation:
The computation is as seen below
Total cost when the production is 9,900 units
Direct materials $8,316
Direct labor $11,187
Variable overhead $12,474
Total $31,977
But,
Their new cost on supplier offer is
= $2.85 × 9,900 units
= $28,215
In the case when the order is accepted, the net income would increase by
= $31,977 - $28,215
= $3,762
Answer:
The assets and liabilities acquired in a consolidation process are recorded at their fair market value. If the price paid during the consolidation process is lower than the fair market value of the assets - liabilities, then an ordinary gain on bargain purchase is recognized for the difference.
Answer:
Normal goods
Explanation:
Normal goods are goods that are goods whose demand increases when income increases and falls when income falls.
I increase my demand for organic fruits and vegetables when my income increased. This shows they are normal goods.
Generic fruits and vegetables are inferior goods.
Inferior goods are goods whose demand falls when income rises and increases when income falls.
I hope my answer helps you
Answer:
Option (a) is correct.
Explanation:
Given that,
Equity = 140 Millions
Debt = 155 Millions
Debt Equity Ratio = Debt ÷ Equity
= 155 Millions ÷ 140 Million
= 1.11
KCE is financing its new project with 25 Millions
Let the New debt issued by x
and the New equity financed be (25-x)
.
Debt Equity Ratio = Debt ÷ Equity
1.11 = (155 + x) ÷ (140 + 25 - x)
1.11 = (155 + x) ÷ (165 - x)
183.15 - 1.11x = 155 + x
28.15 = 2.11 x
x = 13.34
Option (a) is the most nearest to this answer.
New Debt = 155 + 13.34
= 168.34 Millions
New Equity = 140 + 11.66
= 151.66 Millions
