Answer:
The answer are: ... are a combination of the central planning system and the price system.
Explanation:
Every economy in the world is a mixture of capitalism and socialism. In capitalism the fee market is absolute king, it sets prices and supply and demand of products. In socialist countries the government plans the economy and decides supply and demand of goods and services.
No country is purely capitalist since taxes exist and the government always intervenes with regulations and public services, etc. No country is purely socialist either, not even North Korea, since all the economies need to trade with their neighbors and people will always want to prosper.
So countries try to manage their economies in a mixture, some are more capitalist like the US and Canada, and some are more socialist like North Korea and Venezuela. The EU is sort of in the middle of both ideologies.
Manufacturing overhead= $57,600
Explanation:
To calculate the Conversion costs, we need to use the following formula:
Conversion costs= direct labor + manufacturing overhead
Now, if direct labor is 60% of conversion costs, then:
Conversion costs= direct labor / (1 - 0.4)
Conversion costs= 86,400 / 0.6
Conversion costs= $144,000
Finally, we determine the manufacturing overhead:
Manufacturing overhead= 144,000 - 86,400
Manufacturing overhead= $57,600
Answer:
11.57% and 9.02%
Explanation:
For computing the before-tax and after- tax cost of debt we use the RATE formula i.e to be shown in the attachment below:
Given that,
Present value = $1,050 - $20 = $1,030
Future value or Face value = $1,000
PMT = 1,000 × 12% = $120
NPER = 15 years
The formula is shown below:
= Rate(NPER;PMT;-PV;FV;type)
The present value come in negative
So, after solving this,
1. The pretax cost of debt is 11.57%
2. And, the after tax cost of debt would be
= Pretax cost of debt × ( 1 - tax rate)
= 11.57% × ( 1 - 0.22)
= 9.02%