Answer:
B) $50,000
Explanation:
Cost of Capital is the rate which is required by the capital investment by the shareholders or owners of the business. Residual Income is the portion of net income after paying the investors of the company. This income is reinvested or retained by the business.
Net operating Income after tax = $100,000
Average Invested Capital = $500,000
Cost of Capital = $500,000 x 10% = $50,000
Residual Income = Net Income - Cost of capital
Residual Income = $100,000 - $50,000
Residual Income = $50,000
Answer:
$80,000
Explanation:
Calculation to determine what Elk's taxable income is:
Using this formula
Taxable income=Operating income-Operating expenses
Let plug in the formula
Taxable income=$370,000-$290,000
Taxable income=$80,000
Therefore Elk's taxable income is:$80,000
Answer:
Correct option is B) $17.10
Total overhead rate per hour = $17.10
Explanation:
Overhead rates are based on cash outflow, they are not allocated and computed based on non cash items.
Total direct labor hours = 8,900
Thus total variable overhead rate = $5.50
Total cash fixed cost = $133,500 - $30,260 = $103,240
Fixed cost overhead rate = $103,240/8,900 = $11.60
Total overhead cost per hour = Variable overhead + Fixed Overhead = $5.50 + $11.60 = $17.10
Bovin and bogus are the 2 variablez used in a spurious relationship
To help maintain a balanced personal budget sounds like the answer. Hope it helps! :-)
