Answer:
with the third doubling, the AVC = $9.11 per unit
Explanation:
The average variable cost (AVC) decreases by 10% with each doubling of cumulative output:
<u>Production level in units</u> <u>AVC per unit</u>
1,000 $12.50 per unit
2,000 $11.25 per unit
3,000 $10.13 per unit
4,000 $9.11 per unit
Answer:
3.60
Explanation:
Given that,
Sales units = 1,000
Sales price per unit = $60
Variable expenses = 40% of the selling price
Total Fixed cost = $26,000
Contribution margin per unit:
= Selling price - Variable cost
= $60 - ($60 × 40%)
= $60 - $24
= $36
Total contribution:
= Contribution margin per unit × Sales units
= $36 × 1,000
= $36,000
Profit = Total contribution - Fixed cost
= $36,000 - $26,000
= $10,000
Degree of operating leverage:
= (Sales - Variable costs) ÷ (Sales - Variable costs - Fixed Expenses)
= (60,000 - 24,000) ÷ (60,000 - 24,000 - 26,000)
= 36,000 ÷ 10,000
= 3.60
Answer: Top management
Explanation: There are several stages of management in a company to most important of them is the top management. The decisions by top managers affect the organisation as a whole and the success and failures of the organisation highly depends on their actions. Examples of top management are directors and vice president .
In the above case, Geraldo is the vice president of the company and also he is responsible for determining the directions of operations of the company thus we can consider him in the top management.
Answer:
The company WACC is 13.30%
Explanation:
For computing the WACC, first we have to find the weight-age of both debt and equity.
Since in the question, the weightage of debt and equity is given which is equals to
Debt = 30%
And, Equity or common stock = 70%
So, we can easily compute the WACC. The formula is shown below
= Weighted of debt × cost of debt × (1- tax rate) + Weighted of equity × cost of equity
= 0.30 × 0.10 × (1 - 0.30) + 0.70 × 0.16
= 0.021 + 0.112
= 13.30%
Hence, the company WACC is 13.30%
Answer:
The depreciation for 2020 is $233.33
Explanation:
Under the MACRS, computer useful life is 5 years.
The depreciation rate for every year, applying double declining method is: 100% / 5 = 20%. So, depreciation expenses for first year of the computer is calculated as: Cost of the computer x 20% = = 2,000 x 20% = $400.
As the computer is purchased in May, the year 2020 would only account for 7 month out of the first year of depreciation. Thus 2020 depreciation expenses = First year depreciation x 7/12 = 400 x 7/12 = $233.33
