Answer:
The answer is:
A - Fixed Cost
B - Mixed Cost
C - Mixed Cost
D - Variable Cost
E - Variable Cost
F - Variable Cost
G - Mixed Cost
H - Fixed Cost
I - Variable Cost
J - Mixed cost
Explanation:
First let's define the terms:.
Fixed cost is a cost that wont change with varying output. Whether an output increases or decreases, it doesn't change.
Variable cost is a cost that changes with output. If output increases, variable cost increases and vice-versa
Mixed cost is also known as semi-variable cost. It has a combination of both fixed and variable costs
A - Fixed Cost
B - Mixed Cost
C - Mixed Cost
D - Variable Cost
E - Variable Cost
F - Variable Cost
G - Mixed Cost
H - Fixed Cost
I - Variable Cost
J - Mixed cost
Answer:
Bonus liability = 7% x $3,500,000
Bonus liability = $245,000
Explanation:
Since the pre-bonus net income is $3,500,000 and the bonus is 7% of the pre-bonus net income, then, the estimated bonus liability is 7% x $3,500,000 = $245,000.
Answer:
<em>WACC 10.07765%</em>
Explanation:
We solve for the cost of debt by solving for the discount rate which makes the future coupon payment and maturity of the bond equal to 1,020
This is solved using excel or a financial calculator
C 32.50
time 34
<em>rate 0.03153274</em>
PV $672.0015
Maturity 1,000.00
time 34.00
<em> rate 0.03153274</em>
PV 348.00
PV c $672.0015
PV m $347.9985
Total $1,020.0000
<u>annual cost of debt:</u>
0.031532 x 2 = 0.063064 = 6.31%
<u>debt outstanding:</u>
5,000 bonds x $ 1,000 x 102/100 = 5,100,000
<u>equity</u>:
105,000 shares x $59 each = 6,195,000
For the equity we solve using CAMP
risk free = 0.05
market rate = 0.09
premium market = (market rate - risk free) 0.085
beta(non diversifiable risk) = 1.17
<u>Ke 0.14945</u>
Now we solve for the WACC
D 5,100,000
E 6,195,000
V 11,295,000
Equity weight 0.5485
Debt Weight 0.4515
Ke 0.14945
Kd 0.0631
t 0.34
<em>WACC 10.07765%</em>
Answer:
When a report is based on data from a large number of sessions you may see the following notice at the top of the report This report is based on sessions.You can adjust the sampling.
Explanation:
hope this helps
Answer:
The break even point of a company shows how much of your goods or services you need to sell in order to cover all of your costs. It will then give you an idea of how much you need to sell in order to become profitable.
Explanation: