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WITCHER [35]
3 years ago
15

Emma owns a flower shop in Tampa. She pays $3,091 per month to lease her building, $2,208 in wages, $1,887 for flowers and other

supplies and she produces 662 flower arrangements per month. Emma’s average variable cost of production equals:__________.
Business
1 answer:
Arturiano [62]3 years ago
5 0

Answer:

$6.18

Explanation:

Data provided in the question:

Lease payment = $3,091 per month

Wages = $2,208

Amount for Flowers and other supplies = $1,887

Number of flower arrangements produced per month = 662

Now,

The Variable cost are Wages and Amount for Flowers and other supplies

therefore,

Total variable cost = $2,208 + $1,887

= $4,095

Hence,

Emma’s average variable cost of production

= [ Total variable cost ] ÷ [ Number of flower arrangements produced ]

= $4,095 ÷ 662

= $6.18

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An alternative capital budgeting strategy is the flow to equity (FTE) or free cash flow approach. The FTE approach merely requires that equity capital be discounted at the cost of the cash flows from the project to the equity holders of the leveraged firm. The amount of cash that a company's equity shareholders have access to after all costs, reinvestment, and debt repayment is taken into account is known as flow to equity. Free Cash Flow to Equity (FCFE) is calculated as Net Income - (Capital Expenditures - Depreciation) - (Change in Non-cash Working Capital) - (Change in Non-cash Equity) + (New Debt Issued - Debt Repayments) This is the cash flow that can be used to repurchase stock or pay dividends.

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1 year ago
A corporation is considering expanding operations to meet growing demand. With the capital expansion, the current accounts are e
andre [41]

Answer:

B) a decrease of $40,000

Explanation:

As we Know Working capital is the the net or current assets and current liabilities.

Increase in Current Assets

Cash                              $20,000

Accounts receivable    $40,000

Inventories                   <u>$60,000</u>

Total Increase in CA   $120,000

Increase in Current Liabilities

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Accruals                       $10,000

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Total Increase in CA   $160,000

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6 0
3 years ago
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Answer:

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Answer:

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