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VARVARA [1.3K]
3 years ago
6

Pasha Company produced 50 defective units last month at a unit manufacturing cost of $30. The defective units were discovered be

fore leaving the plant. Pasha can sell them"as is" for $20 or can rework them at a cost of $15 and sell them at the regular price of $50. Which of the following is not relevant to the sell-or-rework decision? A.$30 manufacturing costB. $20 selling price of defective unitsC. $15 for reworkD. $50 regular selling priceE. all of these
Business
1 answer:
dimaraw [331]3 years ago
5 0

Answer:

The $30 Manufacturing cost (Sunk Cost)

Explanation:

The manufacturing cost isn't relevant to the scenario as it's a sunk cost (historic cost) and has been incurred and can't be changed. Thus this cost should be disregarded when it comes to the relevant costing decision making. The selling price of defective units, the cost of the rework and the regular selling price is all relevant

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Money markets trade securities that: _______________
Dmitriy789 [7]
The answer is d because d
5 0
2 years ago
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North Around, Inc. stock is expected to return 22 percent in a boom, 13 percent in a normal economy, and −15 percent in a recess
almond37 [142]

Answer:

4.53%

Explanation:

Data provided in the question:

Expected return = ∑ (Return × probability)

Thus,

Expected return = (0.06 × 22) + (0.92 × 13) + (0.02 × (-15))

= 12.98%

Now,

Probability       Return        Probability × (Return-Expected Return)²

0.06                  22                   0.06 × (22% - 12.98%)² = 4.8816

0.92                  13                    0.92 × (13% - 12.98%)² = 0.000368

0.02                  -15                   0.02 × (-15% - 12.98%)² = 5.657608

========================================================

                                                                            Total = 20.5396%

Standard deviation = \sqrt{\frac{\text{Total probability}\times(\text{Return-Expected Return})^2}{\text{Total probability}}

= √(20.5396)

= 4.53%

6 0
3 years ago
Packard Corporation reports the following information: Net cash provided by operating activities $335,000 Average current liabil
Molodets [167]

Answer:

$165,000

Explanation:

Free cash flow is the net cash cash flow available for the shareholders or for the reinvestment after paying all capital expenditure.

The Depreciation is already adjusted in the Cash Flow from operating activities.

Free Cash Flow = Cash Flow from operating activities - Dividend payment - Capital expenditure

Free Cash Flow = $335,000 - $60,000 - $110,000 = $165,000

Current and Long term liabilities has nothing to do in free cash flow calculations.

4 0
3 years ago
The Jackson-Timberlake Wardrobe Co. just paid a dividend of $2.15 per share on its stock. The dividends are expected to grow at
xxTIMURxx [149]

Answer:

(a) $34.4

(b) $38.70(Approx).

(c) $61.9524

Explanation:

(a) Current price:

=\frac{D1}{Required\ return-Growth\ rate}

=\frac{2.15\times(1+0.04)}{0.105-0.04}

=\frac{2.15\times 1.04}{0.105-0.04}

      = $34.4

We use the formula:

A=P(1+\frac{r}{100} )^{n}

where,

A = future value

P = present value

r = rate of interest

n = time period

(b) A=P(1+\frac{r}{100} )^{n}

A=34.4(1.04 )^{3}

         = 34.4 × 1.124864

         = $38.6953

         = $38.70(Approx).

(c)  A=P(1+\frac{r}{100} )^{n}

A=34.4(1.04 )^{15}

         = 34.4 × 1.80094351

         = $38.6953

         = $61.9524

3 0
3 years ago
Which of the following types of pronouncements are intended to establish the objectives and concepts that the FASB will use in d
mezya [45]

Answer:

The correct answer is option A) Statement of Concepts

Explanation:

The Financial Accounting and Standard Board (FASB) pronouncements intended to establish the objectives and concepts that the FASB will use in developing standards of financial accounting and reporting is Statement of Concepts.

Statement of Concepts is intended to serve the general interest of the public by setting the objectives, characteristics, specific qualities, and other parameters that guide selection of economic concepts that will be recognized and reflected in financial statements for financial reporting.

Statement of concepts guide the FASB in developing well researched and informed accounting principles that reflects the contents and inherent limitations that will be used in developing standards of financial accounting and reporting.

7 0
3 years ago
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