Answer:
a. What is the book value of the equipment?
b. If Jones sells the equipment today for $184,000 and its tax rate is 35%, what is the after-tax cash flow from selling it?
- ($184,000 - $86,976) x (1 - 35%) = $97,024 x 65% = $63,065.60
c. Just before it is about to sell the equipment, Jones receives a new order. It can take the new order if it keeps the old equipment. Is there a cost to taking the order and if so, what is it?
- the cost to taking the new order is the opportunity cost of selling the equipment, which is $63,065.60.
Explanation:
MACRS depreciation rate:
Year % Depreciation expense Carrying value
1 20% $60,400 $241,600
2 32% $96,640 $144,960
3 19.20% $57,984 $86,976
4 11.52% $34,790.40 $52,185.60
5 11.52% $34,790.40 $17,395.20
6 5.76% $17,395.20 $0
Answer:
Symbols—such as gestures, signs, objects, signals, and words—help people understand that world. They provide clues to understanding experiences by conveying recognizable meanings that are shared by societies.
Explanation:
<h2>I HOPE IT HELPS PO...☺️☺️☺️</h2>
Answer: The answer is as follows:
Explanation:
Given that,
Raw material = $7.60/unit
Direct labor = $10.60/unit
Manufacturing overhead = $8.60/unit
(1) Unit cost under variable costing = Raw material + Direct labor + variable Manufacturing overhead
= 7.6 + 10.6 + 8.6
= 26.8
(2) Unit cost under absorption costing = Raw material + Direct labor + variable Manufacturing overhead + fixed Manufacturing overhead
= 7.6 + 10.6 + 8.6 + 8.6
= 35.4
To solve this problem, we
use the formula in calculating for the total variable cost (COGS):
Revenue - COGS - SG&A
= Pretax profits
where SG & A is calculated
as:
SG & A = (Contribution - Prextax income)
<span>SG & A = ($320,000 - $117,000)
SG & A= $275,000 </span>
Calculating for revenue
using the margin ratio:
Contribution margin/Revenue = Contribution Margin Ratio
Revenue = Contribution Margin/Contribution Margin Ratio
Revenue = $320,000/.20
Revenue = $1.6m
Going back to the 1st formula:
Revenue - COGS - SG&A = Pretax profits
1.6m - COGS - 275k = 117k
COGS = $1.6m - $117k - $275k
<span>COGS = $1.208 million</span>
Answer:
the security has below average market risk.
Explanation:
As we know that the beta is the systematic risk i.e. market risk of the stock.
if we assume that the average risk in the market is 1 so the beta of the market or market beta is the average risk
Now if the beta of the stock is less than 1 i.e. 0.5 so it is below the average risk of the market
Hence, the correct option is d.
