Answer:
The answer is d. payment to hire a security worker to guard the gate to the factory around the clock.
Explanation:
Let re-visit to the concept of Fixed cost before applying to the questions.
Fixed costs are costs which are unchanged given changes in production level.
a. payment to a electric utility is not fixed cost because higher level of production required higher electricity consumption which leads to higher cost of electricity.
b. cost of raw material is not fixed cost because the higher the production level, the higher the raw material required for production.
c. wages to hire assembly line workers is not fixed cost because the higher the production level, the more workers required and the higher the wages will be.
d. payment to hire a security worker to guard the gate to the factory around the clock is fixed cost because regardless of the production level, the security worker will work for the same amount of time and receive the same level of payment as his workload is much likely to remain the same.
So, d is the correct choice.
Answer:
21% : and 3%
Explanation:
Vertical analysis is a financial analysis approach where line items of a financial statement are compared against a base figure. The base figure may be at the top or bottom of the financial statement hence the term vertical analysis. In practice, revenue is the base figure in most reports.
For ABC Company, revenue is the base figure. In 2016, the debts were $90,765, and revenue was $437,879.
As a percentage, debt would be
= $90,000/$437, 879 x100
=0.20728 x 100
=20.728 %
=21%
in 2015, debts were $70,332, and revenue were $375,421
As a percentage, debt would be
=$70, 765/ $375,421 x 100
=0.18734
=18.73
=19%
in 2016, the debt percentage increased from 19% in 2015 to 21% . 3% increment
Answer:
NPV = 1,003,046
Explanation:
NPV = Present value of income - investment
investment 8,000,000
1,490,000 income per year during 8 years at rate x
We need to calculate the WACC so we can know the rate
equity-ratio = 0.40
debt-equity ratio = 0.6
WACC 6.69590%
Now that we achieve the rate we solve for the present value of the cash flow
PV 9,003,046
And finally get the answer
NPV 9,003,046 - 8,000,000 = 1,003,046
Answer:
25%
Explanation:
Given: Sales= $10,000,000
Cost of goods sold= $5000000.
Pre-tax earning= $500000.
Merchandise inventory= $80000.
Total assets= $2000000.
Now, computing the value of return on assets.
Formula;
⇒
⇒
∴ Return on assets=
Hence, Flinger´s return on assets is 25%
Answer:
Option "C" is the correct answer to the following statement.
Joker, Klue, and Lion Corporations
Explanation:
A group of controlled business is described as a community of two or more companies, businesses or firms.
Joker Corporation purchases 80%, 45% and 45% of Klue, Lion and Mark Corporation respectively.
Klue Corporation purchases 40% and 10% of Lion and Mark Corporation.
In this situation, Joker corporation is created a Parent-subsidiary relationship with other firms. where Klue corporation creates brother-subsidiary relation with Lion and Mark corporation.