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3 years ago

EA14.

Business

1 answer:

cricket20 [7]3 years ago

3 0

Answer:

$1.86; $3.5

Explanation:

Total cost incurred:

= Cost received from departments + Addition of cost within its departments

= $10,000 + $27,200

= $37,200

Unit cost for materials:

= Total cost incurred ÷ equivalent units

= $37,200 ÷ 20,000

= $1.86

Total cost incurred:

= Cost received from departments + Addition of cost within its departments

= $10,000 + $53,000

= $63,000

Unit cost for Conversion:

= Total cost incurred ÷ equivalent units

= $63,000 ÷ 18,000

= $3.5

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Elise Corporation has the following sales mix for its three products: A, 20%; B, 35%; and C, 45%. Fixed costs total $400,000 and

Aneli [31]

Answer:

800 units of product A must be sold for break-even

Explanation:

Given, weighted-average contribution is $100.

Total break-even units = Total fixed cost / Weighted-average contribution

Total break-even units = $400,000 / $100

Total break-even units = 4,000 units

Product A break-even = 4,000 x 20%

Product A break-even = (800 units)

Hence, the correct answer is 800 units.

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3 years ago

PackMan Corporation has semiannual bonds outstanding with nine years to maturity and the bonds are currently priced at $754.08.

Alja [10]

Answer:

b. 8.225%

Explanation:

The rate formula will be used to solve this question.

Please note that the NPER represents the time value.

Where;

Present value is $754.08

Let's assume that the face value is $1,000

PMT= 1,000 x 7.25% ÷2

=$36.25

NPER= 9 years x 2

= 18 years

The formulae is therefore

Rate(NPER,PMT,-,PV,FV)

The value of the present value is negative.

a. The pretax would therefore be 11.75%

b. After tax cost of debt would be ;

Pretax cost of debt x (1 - tax rate)

11.75% x (1 - 30%)

11.75% x (1 - 0.03)

=8.225%.

4 0

4 years ago

Investments created to invest many people's money in many different firms are called:

Advocard [28]

B. money market funds

6 0

3 years ago

Read 2 more answers

Maloney's, Inc. has found that its cost of common equity capital is 17 percent and its cost of debt capital is 6 percent. The fi

Gwar [14]

Answer:

11.64%

Explanation:

The formula to compute WACC is shown below:

= Weightage of debt × cost of debt × ( 1- tax rate) + (Weightage of common stock) × (cost of common stock)

where,

Weighted of debt = Debt ÷ total firm

The total firm includes debt, preferred stock, and the equity which equals to

= $3,000,000 + $2,000,000 = $5,000,000

So, Weighted of debt = ($2,000,000 ÷ $5,000,000) = 0.40

And, the weighted of common stock = (Common stock ÷ total firm)

= $3,000,000 ÷ $5,000,0000

= 0.60

Now put these values to the above formula

So, the value would equal to

= (0.40 × 6%) × ( 1 - 40%) + (0.60 × 17%)

= 1.44% + 10.2%

= 11.64%

8 0

3 years ago

If an investment of $35,000 is earning an interest rate of 8.00%, compounded annually, then it will take for this investment to

Snowcat [4.5K]

Answer:

Therefore the required time period is 3 years.

Explanation:

To calculate the number of period we are using the following formula of future value

Future value = $C_0(1+r)^n$

$C_0$ is cash flow at period 0= $ 35,00

r = rate of interest = 8.00% = 0.08

n= number of periods = ?

Future value = $44,089.92

Substituting the values in the formula

$44,089.92= 35,000(1+0.08)^n$

$\Rightarrow (1+0.08)^n=\frac{44089.92}{35000}$

$\Rightarrow(1.08)^n = 1.259712$

$\Rightarrow (1.08)^n=(1.08)^3$

$\therefore n= 3$

Therefore the required time period is 3 years.

6 0

3 years ago