Answer: $46000
Explanation:
The manufacturing overhead for the month will be calculated as:
Indirect labour = $15000
Add: Indirect material = $4000
Add: Factory electricity gas = $8000
Add: Factory supervisor salary = $12000
Add: Depreciation on factory building = $7000
Therefore, the total manufacturing overheads would be gotten by adding the above values together whihc will be equal to $46000.
Answer:
<em>WACC 10.07765%</em>
Explanation:
We solve for the cost of debt by solving for the discount rate which makes the future coupon payment and maturity of the bond equal to 1,020
This is solved using excel or a financial calculator
C 32.50
time 34
<em>rate 0.03153274</em>
PV $672.0015
Maturity 1,000.00
time 34.00
<em> rate 0.03153274</em>
PV 348.00
PV c $672.0015
PV m $347.9985
Total $1,020.0000
<u>annual cost of debt:</u>
0.031532 x 2 = 0.063064 = 6.31%
<u>debt outstanding:</u>
5,000 bonds x $ 1,000 x 102/100 = 5,100,000
<u>equity</u>:
105,000 shares x $59 each = 6,195,000
For the equity we solve using CAMP
risk free = 0.05
market rate = 0.09
premium market = (market rate - risk free) 0.085
beta(non diversifiable risk) = 1.17
<u>Ke 0.14945</u>
Now we solve for the WACC
D 5,100,000
E 6,195,000
V 11,295,000
Equity weight 0.5485
Debt Weight 0.4515
Ke 0.14945
Kd 0.0631
t 0.34
<em>WACC 10.07765%</em>
Answer:
The correct answer is letter "B": The differences between costs incurred under alternative courses of action.
Explanation:
Incremental Cost is the added cost of one more unit of production. Also referred to as marginal cost, is the cost incurred by the company when it makes one more unit. These costs would not have existed if production had not increased.
Incremental costs are usually lower than the average unit cost of production. <em>Incremental costs are always comprised of variable costs. The latter is the reason why incremental costs can also be described as the result of computing the differences of the alternative paths the firm could have chosen for its production process.</em>
Answer:
- The core competence of a firm’s competitive advantage is based on control over proprietary technological and innovation know-how, licensing and joint venture arrangements should be avoided when necessary so as to avoid and minimize the risk of losing control over that technology. For firms with a competitive advantage based on management effectiveness, the risk of losing control over the management skills to franchisees or joint venture partners is not that welcomed or encouraged. However, many service firms favor a combination of franchising and subsidiaries to control the franchises within particular countries or regions. The subsidiaries may be wholly owned or joint ventures, but most service firms have believed that joint ventures with local partners works best for controlling subsidiaries.
Answer:
Scottish workers have an absolute advantage in producing scones.
English workers have an absolute advantage in producing sweaters.
The opportunity cost Scottish workers have a comparative advantage in Sweaters and English workers have a comparative advantage in Scones.
Explanation:
English workers can produce 50 scones per hour which is 10 more than Scottish workers who can produce 40 scones an hour, they have an absolute advantage in producing scones.
Scottish workers can produce 2 sweaters compared with English workers who can only produce 1, they have an absolute advantage.
The opportunity cost of an English worker producing a sweater is 50 scones. This is because if they spend an hour producing a sweater, they could have been producing 50 scones.
The opportunity cost of a Scottish worker producing a sweater is 20 scones. This is because in an hour they can produce 2 sweaters or 40 scones. Therefore, for each sweater they lose 20 scones
