Well, yes, is that's the question
Answer:
The correct answer is option (B).
Explanation:
According to the scenario, the given data are as follows:
Total cost = $8,600
Total units = 400 Units
Direct labor hour per unit = 5
Variable cost = $1.50
So, we can calculate the fixed cost by using following formula:
Fixed cost = Total cost - Total Direct labor cost
Where, Total direct labor cost = $1.50 × 5 × 400 = $3,000
By putting the value in the formula, we get
Fixed cost = $8,600 - $3,000
= $5,600
Answer:
b. deducted from net income whether declared or not
Explanation:
The formula to compute the basic earning per share is shown below:
Basic earning per share = (Net income - preferred stock dividend) ÷ (weighted average of outstanding shares)
In the case of the non- convertible cumulative preferred stock, the dividend should be paid whether the business earns profit or loss. If the business does not earn any profit during a particular year, in that period the dividend amount is carried forward to next year.
So, the dividend arrears are to be paid to the cumulative preferred stock.
Answer: $4,508
Explanation:
Companies usually give discounts with credit terms to encourage Receivables to pay faster.
In this scenario, credit terms of 2/10, n/30 were offered which means that if Carla Vista Company pays within 10 days they get a discount of 2% but if they don't they should pay the full amount in 30 days.
They paid within the discount period meaning that they qualify for the discount of 2% but they however returned goods worth $1800.
So calculating for that would be,
= (6,400 - 1800) (1 - 0.02)
= $4,508
The amount of the check is $4,508
Answer:
Return on stock will be 12.65%
So option (c) will be the correct option
Explanation:
We have given expected return in booming economy = 22 %
Expected return in normal economy = 11 %
Expected return in recessionary economy = 4%
Probability of boom = 24% = 0.24
probability of normal economy = 67%=0.67
Probability of recession = 9 % =0.09
So Expected return on stock = (Return in boom economy x Probability of boom economy) + (Return in normal economy x Probability of normal economy) +(Return in recessionary economy x Probability of recessionary economy)
Expected return on stock = (0.22 x 0.24) + (0.11 x 0.67) + (-0.04 x 0.09)
= 0.0528 + 0.0737 = 0.1265 = 12.6%
So option (c) will be the correct option
