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3 years ago

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1. A company expects to sell 400 units of Product X in January and then expects sales to increase by 10% per month. If Product X

sells for $10 each, the total sales for the first quarter of the year will be $
2. A manufacturing company expects to sell 12,000 units in August and 15,000 units in September. The company desires to have an ending inventory of 80% of the next month's sales. If inventory on August 1 is 8,000 units, then the company should produce units in August.

3. A manufacturer requires an ending inventory of 5,000 units. Their budgeted unit sales are 20,000 units and beginning finished goods inventor is 3,000 units. The units to be produced is

2 answers:

valina [46]3 years ago

8 0

Answer:

1. Sales = $13,240

2. 13,600 units

3. 22,000 units

Explanation:

1. The sales are increasing by 10% every month. So,

January Sales in units = 400
February Sales in units = 400 * 1.1 = 440
March Sales in units = 440 * 1.1 = 484

January Sales = 400 * $10 ⇒ $4000
February Sales = 440 * $10 ⇒ $4400
March Sales = 484 * $10 = 4840
Total Quarter Sales = 4000 + 4400 + 4840 = $13240

2. The closing inventory for July or opening Inventory for August should have been 80% of August sales,

12000 * 0.8 = 9600 units
Shortfall in Opening Inventory = 9600 - 8000 = 1600 units

The ending inventory for the August should be equal to 80% of September Sales, So

15000 * 0.8 = 12000 units
So, August production should be = 1600 + 12000 = 13600 units

3. Let the Units to be Produced be x,

Sales = Opening Inventory + Production - Closing Inventory

20000 = 3000 + x - 5000

20000 + 5000 = 3000 + x

25000 - 3000 = x

22000 = x

Len [333]3 years ago

3 0

Answer:

1. $13,240

2. 16,000 units

3. 22,000 units.

Explanation:

The question is answered as follows

Part 1: Determine the total sales for the first quarter as follows

January Sales in Units = 400 Units

February Sales Units = 400 x 110% or 1.1= 440 units

March Sales Unites = 440 x 110% or 1.1. = 484 units

Total Sales = 1,324 x $10 = $13, 240

Part 2: Determine Production In August

Production in August making use of the relevant figures

= Expected units + (Expected units in september x 80%) - Inventory on August 1

= 12,000 + (0.8 x 15,000) - 8000= 16,000 Units

Part 3: Determine the Production Units as follows

Sales Units + Closing Inventory of finished goods - The Opening Inventory of finished goods

= 20,000 units + 5,000 units - 3000 units = 22,000 units

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Fama’s Llamas has a WACC of 9.7 percent. The company’s cost of equity is 12 percent, and its pretax cost of debt is 7.5 percent.

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Answer:

0.4766

Explanation:

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Tax rate = 35%

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or

0.097 = weight × 0.12 + ( 1 - weight ) × 0.075 × (1 - 0.35)

or

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or

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or

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or

$\frac{1}{0.6772}$ = $\frac{\textup{Debt}}{\textup{Equity}}$ + 1

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4 years ago

You have $12,500 you want to invest for the next 30 years. You are offered an investment plan that will pay you 7 percent per ye

lubasha [3.4K]

Answer:

Balance after 30 years = $151,018.50

Explanation:

In order to calculate this, we will calculate the future value on an amount invested, gaining interest over the years of investment, and this is given by:

$FV = PV (1 + r)^{t}$

where:

FV = future value

PV = present value

r = interest rate

t = time in years.

Hence the future value is calculated as follows:

1. For the first 10 years at 7% interest:

7% interest = 7/100 = 0.07

$FV = 12,500 (1 + 0.07)^{10}$

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2. For the last 20 years at 9.5%(0.095) interest:

Note that for the remaining 20 years, the present value (PV) used = 24,589.392, as ending balance after the first 10 years

$FV = 24,589.392 (1 + 0.095)^{20}$

$FV = 24,589.392 (1.095)^{20}\\FV= 24,589.392 * 6.1416\\FV = 151,018.496$

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3 years ago

Both Bond Sam and Bond Dave have 7.3 percent coupons, make semiannual payments, and are priced at par value. Bond Sam has three

Zarrin [17]

Answer:

Sam change: -5.13%

Dave change -18.01%

Explanation:

If interest rate increase by 2%

then the YTM of the bond will be 9.3%

We need eto calcualte the present value of the coupon and maturity of the bond at this new rate:

<em><u>For the coupon payment we use the formula for ordinary annuity</u></em>

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

Coupon payment: 1,000 x 7.3% / 2 payment per year: 36.50

time 6 (3 years x 2 payment per year)

YTM seiannual: 0.0465 (9.3% annual /2 = 4.65% semiannual)

$36.5 \times \frac{1-(1+0.0465)^{-6} }{0.0465} = PV\\$

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<u><em>For the maturity we calculate usign the lump sum formula:</em></u>

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity: $ 1,000.00

time: 6 payment

rate: 0.0465

$\frac{1000}{(1 + 0.0465)^{6} } = PV$

PV 761.32

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PV coupon $187.3546 + PV maturity $761.3154 = $948.6700

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For Dave we do the same:

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

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$36.5 \times \frac{1-(1+0.0465)^{-40} }{0.0465} = PV\\$

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PV m $162.3419

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Zanzabum

Answer:

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