Pam works for a corporation that recently fired three top managers who were caught using the company credit cards to lavishly fu
2 answers:
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Answer:
C. $19,600
Explanation:
The contribution margin per hour can be obtained by dividing the difference between the price and variable costs by the number of labor hours required.
Since the candle holders yield the greatest contribution per hour, the maximum of 800 units of this product should be produced. The remaining labor hours after producing candle holders is:
The remaining hours should be used to produce letter openers since they provide the next best contribution per hour. 200 letter openers can be produced with the remaining hours.
The maximum contribution margin that Wood Carving can generate next month is:
Answer:
Maximum initial cost would be $58,116,883.12
Explanation:
1,790,000 increased at 3%
Ke 0.119 + 0.02 = 0.139
ER 0.15
Kd(after-tax) Kd(1-t) = 0.047
DR 0.85
WACC 0.06080
Now that we have the rate, we calculate the present value using the gordon method
1,790,000 / (0.06080-0.03) = 58,116,883.12