Answer:
Instructions are listed below.
Explanation:
Giving the following information:
Consider the following sample of production volumes and total cost data for a manufacturing operation.
Production Volume (units)Total Cost ($)
400units $4000
450units $5000
550units $5400
600units $5900
700units $6400
750units $7000
We will use the high-low method to calculate variable cost and fixed cost.
Variable cost per unit= (Highest activity cost - Lowest activity cost)/ highest activity units - Lowest activity units)
Variable cost per unit= (7000 - 4000)/(750 - 400)= $8.57
Fixed costs= Highest activity cost - (Variable cost per unit * HAU)
Fixed costs= 7000 - (8.57*750)= 572
Fixed costs= LAC - (Variable cost per unit* LAU)
Fixed costs= 4000 - (8.57*400)= 572
Proportion of variable cost= 8.57/572= 0.0149= 1.49%
500 units= 572 + 500*8.57= 4,857
Answer:
A=P(1+r/100)^n
where
A=future value
P=present value
r=rate of interest
n=time period.
a.
16843.93=12800*(1+r/100)^7
(16843.93/12800)^(1/7)=(1+r/100)
(1+r/100)=1.04
r=1.04-1
=4%
b.
50618.88=45,000*(1.04)^n
(50618.88/45,000)=(1.04)^n
Taking log on both sides;
log (50618.88/45,000)=n*log 1.04
n=log (50618.88/45,000)/log 1.04
=3 years
c.
1.A=$50*(1.05)^5
=$63.81(Approx).
A=$25*(1.1)^5
=$40.26(Approx).
2.
A=$25*(1.1)^5
=$40.26(Approx).
A=$50*(1.05)^5
=$63.81(Approx).
Hence Case 1 is correct.
Explanation:
Answer:
It is 16.9
Explanation:
Operating cycle = Inventory turnover + Receivable turn over - payable turnover
Hence, Operating cycle = 7.3+9.6
=16.9
Operating cycle implies how long it takes us to convert entire production process to cash .
It has an direct relationship with the level of working capital required. The higher the operating cycle, the higher the working capital investment required to keep the operation running.
A cash driven businesses like restaurant which hardly sell on credit will certainly have shorter operating cycle compared to a manufacturing company.
Answer:
D 34.62%
Explanation:
To get the return on commonequity we need to follow a few steps as follows:
Here we have to let the Average total common stockholders' equity = ($550,000 + $490,000) ÷ 2 = $520,000 and (Net income $200,000 - Preferred Dividends $20,000) ÷ Average total common stockholders' equity = 34.62% .Therefore the correct answer is 34.62%.
The appropriate response is double taxation. Double taxation is a tax assessment guideline alluding to wage charges paid twice on a similar wellspring of earned salary. It can happen when salary is burdened at both the corporate level and individual level. Twofold tax assessment likewise happens in universal exchange when a similar pay is exhausted in two unique nations.
