Answer:
67,840 units
Explanation:
The computation of the equivalent units for material by using the FIFO method is shown below:
<u>Particulars Unit Percentage completion Equivalent units</u>
Opening
inventory 4,000 units 50% 2,000 units
Completed
& transferred
(67,000
- 5,800) 61,200 units 100% 61,200 units
Closing
inventory 5,800 units 80% 4,640 units
Total 67,840 units
Answer:
The correct solution is "$42.94".
Explanation:
The given values are:
D0 = 4
Ks = 15%
As we know,
⇒ 
By using the Gordon Model, we get
⇒ 
($)
Answer:
Break-even point in units= 1,500
Explanation:
Giving the following information:
Selling price= $600
Unitary variable cost= $420
Fixed cost= $270,000
<u>To calculate the break-even point in units, we need to use the following formula:</u>
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 270,000 / (600 - 420)
Break-even point in units= 1,500
A recession is a time in an economy whereby trade and industrial activities is low.Economists believe that towards the end of this period is the best to start a business due to the following reasons: at this time things are more affordable as there is low circulation of money in the economy. Low-interest rates on loans thus credit is cheaper. Additionally, there will be less competition as the money is in the hands of few people during this time. Finally, many people want to save money and thus clients will be on the lookout for more affordable alternatives.
Answer:
$3,750
Explanation:
at $25 per sheet of plywood:
total demand = 800 - (10 x 25) = 800 - 250 = 550
total supply = (50 x 25) - 1,000 = 1,250 - 1,000 = 250
the equilibrium price is:
800 - 10P₁ = 50P₁ - 1,000
1,800 = 60P₁
P₁ = 1,800 / 60 = 30
the equilibrium quantity (Q₁) is:
Q₁ = 800 - (10 x 30) = 800 - 300 = 500
at 250 units, the price should be:
250 = 800 - 10P₂
10P₂ = 550
P₂ = $55
total deadweight loss = 0.5 x (P₂ - P₁) x (Q₂ - Q₁) = 0.5 x ($55 - $25) x (250 - 500) = 0.5 x $30 x -250 = -$3,750
