The management accountant for Martha’s Book Store has prepared the following income statement for the most current year.

Business

1 answer:

Tatiana [17]3 years ago

5 0

Answer:

c. less corporate profits.

Explanation:

Subtract all the expenses from the revenue that are solely associated with Cookbook product line.

60000 - 36000 - 18000 - 2000 = 4000

This $4000 suggests that CookBook product line contributes profit of 4000 towards the company. So If the cookbook product line had been discontinued prior to this year, the company would have reported less corporate profits by $4000.

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You have a portfolio that is invested 24 percent in Stock R, 38 percent in Stock S, and the remainder in Stock T. The beta of St

Nady [450]

Answer:

1.90

Explanation:

The computation of the beta of the stock T is shown below:

Portfolio beta = Invested percentage in stock R × beta of Stock R + Invested percentage in Stock S × Beta of stock S + Invested percentage in Stock T × Beta of Stock T

1.37 = 0.24 × 0.71 + 0.38 × 1.26 + 0.38 × Beta of Stock T

1.37 = 0.1704 + 0.4788 + 0.38 × Beta of Stock T

1.37 = 0.6492 + 0.38 × Beta of Stock T

0.7208 = 0.38 × Beta of Stock T

So, the beta of stock T is 1.90

4 0

3 years ago

What is the rationale behind the ceiling when applying the lower-of-cost-or-market method to inventory?

Taya2010 [7]

Answer:

The correct answer is letter "D": Prevents overstatement of the value of obsolete or damaged inventories.

Explanation:

The lower-of-cost-or-market method values assets according to the lowest value possible choosing between the market value or the asset's historical cost. This accounting principle is useful to avoid exaggerating the value of obsolete or damaged assets the firm might have in stock.

5 0

3 years ago

Microsoft and a smaller rival often have to select from one of two competing technologies, A and B. The rival always prefers to

Nuetrik [128]

Answer: true, there is an equilibrium.

Explanation:

the above game is a pure strategy. A pure strategy occur when the game is strictly determined. the criteria used to determine the pure strategy is maxi-min and min-max. max-min means selecting the least case from all best cases and min-max means selecting the best from all least cases.

Base on the criterion, the least out of all best for max-min is 1 unit and the best out of all least cases for min-max is 1 unit. the max-min is equal to the min-max,hence it strictly determined and therefore a pure strategy.

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3 years ago

An investment that costs $105,000 today is expected to produce the following cash inflows over each of the next five years: $20,

bearhunter [10]

Answer: 1.89%

Explanation:

You can use Excel to find the IRR here:

Investment amount should be first as shown and should be in negative.

The cash flows will then follow each other by year.

Use the =IRR formula to select all the cells and the IRR will show.'

IRR here = 1.89%