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3 years ago

EA1.

Business

1 answer:

Ostrovityanka [42]3 years ago

5 0

Answer:

27,000 units

Explanation:

The units must be produced is shown below:

The formula is

Number of units produced = Budgeting sale units + ending inventory units - beginning inventory units

= 25,000 units + 7,000 units - 5,000 units

= 32,000 units - 5,000 units

= 27,000 units

For computing it, we simply added the ending inventory units and deduct beginning inventory units to the budgeting sale units

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Does the good news conveyed by the announcement of a dividend increase mean that a firm can increase its stock price in the long

vivado [14]

Answer:

True

Explanation:

Yes, as there is an increase in dividend with the same expected return, share price increases using dividend growth model.

As for example current dividend = $5

And expected return = 10%

Price of share = 5/10% = $50

In case dividend is increased to $10 then share market price = $10/10% = $100

Now, with an increase in dividend rate, there is an increase in market price accordingly company can raise dividend in order to raise the share price accordingly.

Further, this might not be possible when dividend is fixed for the period as dividend is fixed with no further growth rate the price will also be fixed. So every time when the price is to be increased, the dividend has to be increased.

Therefore, above statement is true.

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3 years ago

Division A manufactures an aircraft engine component with unit variable product cost of $38 and market price of $50. Division A

olya-2409 [2.1K]

Answer:

The maximum transfer price would be $50.

Explanation:

The maximum transfer price is nothing but the market price for the product , which is the most simple way to derive a transfer price . Here by selling the components of aircraft engines at market price, there are very good chances of high profits to be earned. So the maximum transfer price should be $50.

7 0

3 years ago

A company sells 15,000 units of its single product annually. Annual revenues are $450,000, variable costs are $315,000, and fixe

valentinak56 [21]

Answer:

Decrease in profit = $9,000

Explanation:

The impact on the profit would be the sum of the increase in contribution from the special order less the lost contribution by forgoing the standard order.

Accepting the special order of 3,000 units would mean losing standard contribution on 2,000 units from the current sales unit of 15,000. Remember the company only has excess capacity of 1, 000 units i.e (16000-15,000) So, the additional 2,000 units would need to be forgone at standard price.

Variable cost per unit = 315,000/15,000 = $21

Standard selling price = 450,000/15,000 = $30

Special order price = $24

Additional contribution from special order = (24-21) × 3,000 = 9,000

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Decrease in profit <u> (9,000)</u>

By accepting the special order, the company would lose $9,000 of its profit

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3 years ago

For each of the scenarios below, determine whether you think it is likely that an employer could be discriminating against apers

mihalych1998 [28]

Answer: A young lawyer who just finished work on a multimillion -dollar development deal downtown is hired by an economic development ﬁrm in lieu of an older lawyer who works on litigation

This is not a case of discriminating against a person because of age, as we can see the young lawyer is better suited for a job in economic development as he already has worked on a development deal, where as the older lawyer is a litigator

A large retail outlet hires an 80-year-old woman to greet customers instead of a 30-year-old woman who has been greeting customers in other stores for a decade

This may be a case of age discrimination, because the 30 year old seems to be the better candidate, because she has experience in this work and will be more energetic than the 80 year old as well

The owner of a local, hip smoothie bar in a university town just fired a graduate student who had worked at the bar for three years and instead hired a college sophomore.

This may be a case of age discrimination because the employer is firing a graduate who has had 3 years of experience and hiring someone who hasn't graduated and has no experience

Explanation:

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4 years ago

The following data are available relating to the performance of Sooner Stock Fund and the market portfolio:

Oliga [24]

Answer:

2.6%

Explanation:

Jensen Measure is calculated using the below formula

Jensen Alpha = Rp - (Rf + beta*(Rm - Rf))

Where Rp = Return on portfolio = 20%, Rf = risk free rate = 3%, Beta = Beta of portfolio = 1.8 and Rm = Market return = 11%

Jensen Alpha = 20 - (3 + 1.8*(11-3))

Jensen Alpha = 20 - (3 + 1.8*8)

Jensen Alpha = 20 - (3 + 14.4)

Jensen Alpha = 20 - 17.4

Jensen Alpha = 2.6%

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3 years ago