Answer:
$31.76 million
Explanation:
Economic Value Added is the residual wealth left for shareholders after having accounted for the financing needs of the company as shown by the formula below:
EVA=NOPAT-(WACC*invested capital)
NOPAT is the net operating profit after tax =operating profit(EBIT)*(1-tax rate)
Net income=Earnings before tax*(1-tax rate)
net income= $55 million
EBT=unknown
tax rate=40.0%
$55=EBT*(1-40.0%)
$55=EBT*0.60
EBT=$55/0.60
EBT=$91.67
EBIT=EBT+interest
EBIT=$91.67+$19
EBIT=$110.67
NOPAT=$110.67*(1-40%)
NOPAT=$66.41
WACC=9.0%
perating capital employed=$385
EVA=$66.41-(9.0%*$385)
EVA=$31.76 million
operating capital em
Answer:
B. the excess of sales over the break-even volume of sales.
Explanation:
The formula to compute the margin of safety is shown below:
The margin of safety = Expected sales - break-even sales
where,
Expected sales = Selling price per unit × Unit sales
And, the break-even sales equal to
= (Fixed cost) ÷ (Contribution margin Ratio)
where,
Contribution margin per unit = Selling price per unit - Variable expense per unit
Answer:
2.64%
Explanation:
A = P(1 + r)^n
A = $12,000
P = $10,000
n = 7 years
12,000 = 10,000(1 + r)^7
(1 + r)^7 = 12,000/10,000 = 1.2
(1 + r)^7 = 1.2
1 + r = (1.2)^1/7
I + r = 1.0264
r = 1.0264 - 1 = 0.0264
r = 0.0264 × 100 = 2.64%
Answer:
11) 9 cantaloupes
The answer would be 9 because three cantaloupes cost 7 dollars. And 7 times 3 equals 21. Then we would need to multiply the three cantaloupes by three to get the total amount if she has 21 dollars.
12) 20 Dirhams
The answer would be 20 Dirhams because 4 of them would cost 1 dollar. And if we add 4 more dollars it would equal 5. hen we would need to multiply 4 five times to get the total amount of Dirhams with the exchange of 5 dollars.
13) 8 Bunches of fennel
The answer would be 8 bunches of fennel because it cost 9 dollars for one bunch. And if we multiply it by two then we will get 18. Then if we get 18 we will need to multiply the four bunches by 2 since one bunch cost 9 dollars and two bunches cost 18.
14) Two fruit baskets
The answer would be 2 fruit baskets because if we were to buy on fruit basket it would cost 30 dollars. And we we would buy two it would cost 60 because 30 times 2 is 60.
15) 21 dollars
If I multiply 11.1 by 4 then I would get 44.4. Then I would need to multiply 5.30 dollars by 4 too and I would get 21.2 and round it up I get 21 dollars.
16) 40 peso
If I divide 121.10 by 3 then I would get 40.36... Then I would round the number to the nearest tenth and get 40 pesos.
17) 46 in width
The height / tall of the painting would not be affected because we didn't change the tall only the width. The width however would be 46.2 rounded down to 46. Because if I add 3.3 to 42.9 then I would get 46 as the width.
18) 16 cabbage
I divided 28.80 from 1.80 and get 16.
Answer:
$7,400
Explanation:
Given the above information, the total factory overhead cost would be computed as;
Total factory overhead costs = Indirect materials + Indirect labor + Maintenance of factory equipment
= $1,200 + $4,200 + $2,000
= $7,400
Hence, the total factory overhead costs is $7,400
