Answer:
Statement B is correct
Explanation:
Under absorption costing method is followed then, cost of goods sold is only considered, even the fixed cost component is considered and proportionately divided between goods sold and finished goods inventory whereas, in variable costing this is not done.
Therefore, when there is finished goods inventory lying then absorption costing will show more profit then variable costing method.
Thus, Statement B is correct
Answer:
(A) Sales of higher-priced houses were unaffected by the sales drop because their purchasers have fewer constraints limiting the total amount they pay.
Explanation:
The question asks us to state which statement would explain the sharp rise in the average price of new homes sold, and the only option that does that is option A. The average price of new homes sold includes both cheap, middle class and expensive homes, and assuming that the sale of both cheap and middle class homes decreased, the average price of new homes sold would increase because the weight of expensive homes is larger.
E.g. 100 houses are sold:
40 cost around $150,000
50 cost around $300,000
10 cost around $1,000,000
average price = $310,000
sales of cheap and middle class homes decreased, so only 70 were sold:
25 cost around $150,000
35 cost around $300,000
10 cost around $1,000,000
average price = $346,429 (represents an 11.75% increase)
Answer:
The portion of equity finance is 57.86%
Explanation:
WACC or weighted average cost of capital is made up of debt and equity capital added in their specific weightage and their cost.
The formula to calculate WACC is,
WACC = D / A * (1-tax) * rD + E /A * rE
Where,
- D / A is debt over total assets
- rD * (1-tax) is the after tax cost of debt
- E / A is Equity over total assets
- rE is the cost of equity
Let x be the portion of equity financing.
Then portion of debt financing is 1 - x as debt + equity = 1.
0.14 = 1-x / 1 * (1 - 0.21) * 0.1077 + x / 1 * 0.18
0.14 = 0.085083 - 0.085083x + 0.18x
0.14 - 0.085083 = 0.094917x
0.054917 / 0.094917 = x
x = 0.57857 or 57.857%
Answer:
C
Explanation:
The first point here is that the State is evenly distributed among the three cities that made up the state. That means if the state population is 300 , each city population is 100 .
Now , if Ralph Rubin get a 10% support from Summerton (100 people) and Turner got the 100% support of Tarrytown (100 people) assuming 1005 participation. The decider of the election will be the people of Auburn.
The preferred candidate by the majority ((more tha 50%)people of auburn will be the winner
Answer:
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