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postnew [5]
3 years ago
11

Landau Gears provides the following cost information related to its production of its primary product: Per Unit Variable manufac

turing cost $12 Fixed manufacturing cost 8 Variable selling and administrative expenses 2 Fixed selling and administrative expenses 3 Desired ROI per unit 7 What is the markup percentage assuming that Landau Gears uses absorption costing? a. 60% b. 35% c. 100% d. 28%
Business
1 answer:
galben [10]3 years ago
4 0

Answer:

The Mark Up % for Landau Gears (using absorption costing) = 28%

Explanation:

Landau Gears

Variable Manufacturing cost Per unit = $12

Fixed Manufacturing cost Per unit = $8

Variable Selling & Admin cost Per unit = $2

Variable Selling & Admin cost Per unit = $3

Desired ROI Per unit = $7

Calculate Mark-Up %

ROI = Sales minus Invested Fund (Cost of operations)

where ROI = $7/unit

$7 = Sales minus ($12 + $8 + $2 + $3)

$7 = Sales minus $25

Make Sales the subject of formula

Sales = $25 + $7 = $32

Mark Up = 7/25 x 100% = 28%

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he director of capital budgeting for See-Saw Inc., manufacturers of playground equipment, is considering a plan to expand produc
kicyunya [14]

Answer and Explanation:

The computation is shown below:

Debt = D ÷ (E + D)

= 0.8 ÷ (1 + 0.8)

= 0.4444

Now

Weight of equity = 1 - Debt

= 1 - 0.4444

= 0.5556

As per Dividend discount model

Price = Dividend in 1 year ÷ (cost of equity - growth rate)

40 = $2 ÷ (Cost of equity - 0.06)

Cost of equity = 11%

Cost of debt

K = N

Let us assume the par value be $1,000

Bond Price =∑ [(Annual Coupon) ÷ (1 + YTM)^k] + Par value ÷ (1 + YTM)^N

k=1

K =25

$804 =∑ [(7 × $1000 ÷ 100)/(1 + YTM ÷ 100)^k] + $1000 ÷ (1 + YTM ÷ 100)^25

k=1

YTM = 9

After tax cost of debt = cost of debt × (1 - tax rate)

= 9 × (1 - 0.21)

= 7.11

WACC = after tax cost of debt × W(D) + cost of equity ×W(E)

= 7.11 × 0.4444 + 11 × 0.5556

= 9.27%

As we can see that the WACC is lower than the return so it should be undertake the expansion

5 0
3 years ago
The two general kinds of trade barriers are _____.
lana66690 [7]
I think the answer is A
3 0
3 years ago
Santorino Company produces two models of a component, Model K-3 and Model P-4. The unit contribution margin for Model K-3 is $6;
Lynna [10]

Answer:

a. 50%

Explanation:

Model P-4 requires 30 minutes of machine time.

A machine hour consists of 60 minutes

Calculating the machine time of Model P-4 in terms of percent of machine hour:

= (Model P-4 Machine time/Machine Hour)*100

= (30/60)*100

= 0.5 * 100

=50%

So, the percent of Model P-4 machine time in terms of a machine hour is 50%.

6 0
3 years ago
Consider the following three items: CQ, EI, and AP = PP + S – T. How might you to achieve improved outcomes for groups that have
il63 [147K]

Answer:

How to achieve improved outcomes for groups that have specific set of objectives focusing on how the concepts can be used to make a difference across the group

  • making each member of the group understand each other emotionally and their ways of performing tasks
  • making each member of the group understand their importance in the entire production process
  • making the group members aware about the importance of optimum utilization of resources and avoid wasting resources  while working
  • making the group understand the possibility of achieving good performance by eliminating work threats
  • making the group understand the organization's structure therefore it makes the group culturally intelligent

How you can improve positive influences and especially preempt or limit negative sentiments

  • increasing the dependency culture among each other so they learn to work with each other in harmony.
  • creating friendly relationships between employees and also between employees and employer
  • making the employees understand and practice proper organizational culture so that they can work judiciously following the organizational structure

Explanation:

Note :

CQ = cultural intelligence

EI = emotional intelligence

AP = actual productivity

PP = potential productivity

S = synergy

T = performance threats

How to achieve improved outcomes for groups that have specific set of objectives focusing on how the concepts can be used to make a difference across the group

  • making each member of the group understand each other emotionally and their ways of performing tasks
  • making each member of the group understand their importance in the entire production process
  • making the group members aware about the importance of optimum utilization of resources and avoid wasting resources  while working
  • making the group understand the possibility of achieving good performance by eliminating work threats
  • making the group understand the organization's structure therefore it makes the group culturally intelligent

How you can improve positive influences and especially preempt or limit negative sentiments

  • increasing the dependency culture among each other so they learn to work with each other in harmony.
  • creating friendly relationships between employees and also between employees and employer
  • making the employees understand and practice proper organizational culture so that they can work judiciously following the organizational structure
5 0
3 years ago
Which special advertising category has the objective of increasing visibility and increasing store traffic?
Viefleur [7K]
E. retail advertising. .
3 0
4 years ago
Read 2 more answers
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