In marketing, an item’s utility refers to only how that product is used by the consumer. True False

Pember Corporation started business in 2012 by issuing 200,000 shares of $20 par common stock for $27 each. In 2017, 25,000 of t

natima [27]

Answer:

Option D is the correct option. Please choose option D that is $150,000.

Explanation:

Amount of paid-in capital from treasury stock transactions = Shares exchanged * (Market Price - Share purchase Cost)

Where Shares exchanged = 25000

Market price = $45

Cost of share = $39

Therefore, the amount of paid-in capital from treasury stock transactions = 25000 shares * (45 - 39) = $150,000

Option D $150,000 is correct

6 0

3 years ago

For the current year ended October 31, Friedman Company expects fixed costs of $14,300,000, a unit variable cost of $250, and a

Nana76 [90]

Explanation:

Breakeven=fixed cost/selling price - variable cost

so 14,300000/380-250

14,300000/130 = 110,000 units to be able to make break even

5 0

3 years ago

"Clauss Company transfers out 14,000 units and has 2,000 units of ending work in process that are 25% complete. Materials are en

diamong [38]

Answer:

a. $112,000

b. $7,500

Explanation:

(a) transferred out

Units transferred out are 100% complete for both materials and conversion costs, thus multiply the Total Cost per Equivalent units with the number of units transferred.

Cost of units transferred out = $8 × 14,000 units

= $112,000

(b) in ending work in process

Units of ending work in process are 100% complete in terms of materials ( since materials are entered at the beginning of the process) whilst 25% complete in terms on conversion cost (applied uniformly during production).

Cost of ending work in process

Materials ($3 × 2,000 units) = $6,000

Conversion ($3 × (2,000 units × 25%)) = $1,500

Total Cost = $7,500

6 0

3 years ago

Perit Industries has $210,000 to invest. The company is trying to decide between two alternative uses of the funds. The alternat

goblinko [34]

Answer:

npv = $92,531.34

NPV = -$13,206.90

Project A should be chosen because it has a higher NPV

Explanation:

Here is the full question :

Perit Industries has $210,000 to invest. The company is trying to decide between two alternative uses of the funds. The alternatives are: Project A Project B Cost of equipment required $210,000 $0 Working capital investment required $0 $210,000 Annual cash inflows $30,000 $52,000 Salvage value of equipment in six years $9,100 $0 Life of the project 6 years 6 years The working capital needed for project B will be released at the end of six years for investment elsewhere. Perit Industries’ discount rate is 15%. Click here to view Exhibit 11B-1 and Exhibit 11B-2, to determine the appropriate discount factor(s) using tables. Required: a. Calculate net present value for each project. (Any cash outflows should be indicated by a minus sign. Use the appropriate table to determine the discount factor(s).) b. Which investment alternative (if either) would you recommend that the company accept? Project B Project A

Net present value is the present value of after-tax cash flows from an investment less the amount invested.

NPV can be calculated using a financial calculator

Project A

Cash flow in year 0 = $-210,000

Cash flow each year from year 1 to 5 = $30,000

Cash flow in year 6 = $30,000 + $9100 = $39,100

I = 15%

npv = $92,531.34

Project B

Cash flow in year 0 = $-210,000

Cash flow each year from year 1 to 6 = $52,000

I = 15%

NPV = -$13,206.90

Project A should be chosen because it has a higher NPV

7 0

3 years ago

When evaluating the six-step decision-making process, what occurs during the solution implementation step? the process will begi

worty [1.4K]

The answer is the solution that best solves the problem is selected.

During the solution implementation step you should already have determined which solution you would apply to solve the problem that you encounter. By determining which solution to implement, you are on your way to solving the problem that requires your decision-making. If the solution proves to be unsuitable later on, you can refine it later on.

6 0

3 years ago