Answer:
B) $1,187.50
Explanation:
The computation of the total profit or loss on this investment is given below:
Expiration price = 1061'4 = 1061 + 4 ÷ 8 = 1061.50
Quoted price = 1056'6 = 1056 + 6 ÷ 8 = 1056.75
Now the profit is
= (1061.50 - 1056.75) × 5000 × 5
= $1,187.50
Hence, the profit on this investment is $1,187.50
Answer:
$1,375
Explanation:
Given the information above, the Ending inventory = Units available - Units sold
Units available = 10 + 25 + 30 + 70 = 80
Units sold = 60
Ending inventory = 80 - 60
Ending inventory = 20
Cost of ending inventory under FIFO
= (15 × $70) + (20 - 15) × $65
= $1,050 + $325
= $1,375
Therefore, the ending inventory cost using FIFO is $1,375
Answer: 49.10 pee unit
Explanation:
Direct materials = $14.30
Add: Direct labor = 23.90
Add: Variable manufacturing overhead = 3.00
Add: Avoidable overhead = 28.30 - 28.40 = 0.10
Avoidable cost = 41.10
The maximum amount that the company should be willing to pay an outside supplier per unit for the part if the supplier commits to supplying all 53,000 units required each year will be:
= 41.10 × 53000 + 424,000 / 53000
= 49.1 per unit
Answer:
$75
Explanation:
The formula to compute the price -earning ratio is shown below:
Price earning ratio = Market price ÷ Earning per share
where,
Market price is $60
And the earning per share is
= ($1,500,000 ÷ 300,000 shares)
So, price earning ratio is 12
Now the company stock price is
$12 = Stock price ÷ (2,500,000 ÷ 400,000)
So, Stock price is $75
