Answer:
The two security possibilities that Charlie wants in exchange for contributing land for the purpose of constructing a shopping center, a project that he joined his three friends to accomplish are to:
- receive corporate bonds for his land or
- take out a mortgage on the land before transferring it to the corporation.
Another alternative would be equity in the corporation.
Explanation:
If charlie opts for the fist option which is to receive bonds for his land, He can hold it until their maturity date and collect interest payments on them. Bond interest is usually paid twice a year or he can resell them at a higher price.
Taking out a mortgage on his land will also accrue earnings that is secure before transferring it to the operation.
However, having an equity stake in the corporation will pay much more. A shopping center is a real estate investment which is also secure and less risky.
His best best would be to negotiate a good percentage higher than 25% stake on the corporation's equity.
Answer:
a. $ 900 underapplied
Explanation:
Based on the data provided we conclude that the factory overhead is applied on the basis of direct labour hours.
Determination of Overhead rate
Estimated overhead $ 115,000
Direct labour hours 23,000 hours
Overhead rate per direct labor hour is $ 115,000/ 23,000 = $ 5 per direct labor hour
Amount of applied overhead = Direct Labor hours * Overhead rate per hour
Applied Overhead = $ 5 * 35,000 $ 175,000
Actual Overhead <u>$ 175,900</u>
Underapplied Overhead $( 900)
Answer:
The total sales of a product, by all competitors in the industry, is:____
e. lowest in the market introduction stage.
Explanation:
The product life cycle refers to the time period when a product is first introduced to a market until it exits the market. There are four main stages in a product life cycle. They include introduction, growth, maturity, and decline. It is during the introduction phase that the total sales are lowest. The low sales are witnessed again during the latter stage of decline. The highest sales are achieved during the maturity stage.
Answer:
D.
Explanation:
Based on the scenario being described within the question it can be said that when allocating funds, the firm should probably assign the highest cost of capital to division Z because it is most likely the riskiest of the three divisions. This is because Division Z focuses on research and development which means that they might not actually discover or create something that can bring value to the company and is therefore highly risky.
Answer: are incurred even if nothing is produced.
Explanation:
Fixed costs are referred to as the cost that doesn't vary with the production level. Even if the company doesn't produce anything, the fixed cost will still be incurred.
The fixed cost is different from the variable cost which is the cost that varies along with production. Examples of fixed cost include salaries, rental lease payments, salaries, etc.
