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nadya68 [22]
3 years ago
11

A small clothing firm currently produces 50,000 shirts and blouses per month. The cost of its factory, raw materials, and labor

is $500,000. If it is to increase production by 5,000 and that requires and additional labor and raw material expense of $100,000. What is the cost per shirt before the increase in production?a. $5b. $10c. $20d. $50e. $100
Business
1 answer:
Vesnalui [34]3 years ago
6 0

Answer:

b. $10

Explanation:

The computation of the cost per shirt is shown below:

= (The cost of its factory, raw materials, and labor) ÷ (production level)

= $500,000 ÷ 50,000 shirts

= $10

Since we have to compute the cost per shirt before the increase in production level so we do not consider the increased production level and increase labor and raw material expense.

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Answer:

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Assume that Zonk is a potential leveraged buyout candidate. Assume that the buyer intends to put in place a capital structure th
vekshin1

Answer:

A.8.85%

Explanation:

Computation to determine the weighted average cost of capital for Zonk based on the new capital structure.

First step is to calculate the Cost of equity capital using this formula

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Cost of equity capital = 2.3% + (1.13*5.3%)

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4 0
3 years ago
The following are selected 2020 transactions of Astin Corporation. Sept. 1 Purchased inventory from Encino Company on account fo
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Answer:

inventory  50,000 debit

    accounts payable    50,000 credit

--to record purchase of goods--

accounts payable 50,000 debit

      notes payables      50,000 credit

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Explanation:

a)  we record the purchase as always.

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c) we discount on the note and we are goind to declare the interest expense at maturity or year-end against this discount.

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