Answer:
Total production costs= $57,500
Explanation:
Giving the following information:
Estimated manufacturing overhead rate= $65 per direct manufacturing labor-hour.
Direct materials of $35,000
250 direct manufacturing labor-hours at $25 per hour
<u>First, we need to allocate overhead:</u>
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 65*250= $16,250
<u>Now, the total production costs:</u>
Total production costs= 35,000 + 25*250 + 16,250
Total production costs= $57,500
Answer:
when to switch marketing campaigns to international markets.
Explanation:
Customer relationship management systems (CRM) is a tool that is used to manage customer relationship, and also is used to gain insight into customer behaviour is the sales process. For example the new CRM system implemented by the BugZapper company is giving insight into the customer sales process as well as what time of year their product goes dormant in sales in the U.S. but picks up in South American countries.
The insight gained can be used to determine when campaigns can be switched to the international market.
Answer:
Correct option is A
“The flow of dollars between sellers of jewelry and clothing and buyers of jewelry and clothing” is the correct option
Explanation
It is a curve which shows various combination for the amount of two goods among which they can be produced with in the given available resources. Thus, it shows that the maximum amount of output is produced with the help of given resource.
Answer:
The manager should pick project B
Explanation:
To determine what decision the manager should make, the NPV of both projects should be calculated.
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
NPV for project A
Cash flows:
Year 0 = $-335,000
year 1 = $140,000
year 2 = $150,000
year 3 = $100,000
I = 6%
NPV= $14,536.87
NPV for project B
Cash flows:
Year 0 = $-365,000
year 1 = $220,000
year 2 = $110,000
year 3 = $150,000
I = 6%
NPV= $66,389.67
Both projects are profitable but because the firm uses capital rationing , the manager has to pick the now profitbale project, which is project B.
To find the NPV using a financial calacutor:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
I hope my answer helps you
Answer:
11.62%
Explanation:
In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below
Expected rate of return = Risk-free rate of return of treasury bond + Beta × (Market rate of return - Risk-free rate of return)
= 5.25% + 0.88 × (12.50% - 5.25%)
= 5.25% + 0.88 × 7.25%
= 5.25% + 6.38%
= 11.63% approx
All other information which is given is not relevant. Hence, ignored it
