Answer:
$306,000
Explanation:
To determine manufacturing costs, consider only those cost that can be directly traced to the product manufactured and plant related costs.
<u>Total Manufacturing Cost Calculation :</u>
Factory Utilities $11,400
Indirect Materials $39,500
Direct Materials $166,400
Equipment Depreciation $47,000
Direct labor $91,700
Total Manufacturing Cost $306,000
Answer:
$15 per backpack
Explanation:
The average variable cost per of producing a backpack by using the high low method is shown below:
Variable cost per backpack = (High total cost - low total cost) ÷ (High backpack produced - low backpack produced )
= ($110,000- $87,500) ÷ (4,000 backpack produced - 2,500 backpack produced )
= $22,500 ÷ 1,500 backpack produced
= $15 per backpack
Answer:
PV = $78.46153 rounded off to $78.46
Explanation:
A perpetuity is an unlimited series of cash flows that are of constant amount and occur after equal intervals of time. As they are unlimited in number, we say that they are perpetual. A perpetual preferred stock can also be said to be in form of a perpetuity as it pays a constant dividend after equal intervals of time. To calculate the price of the preferred stock, we use the present value of perpetuity formula which is,
PV = Cash flow / r
Where,
- r is the required rate of return
PV = 5.1 / 0.065
PV = $78.46153 rounded off to $78.46
Answer:
Business risk.
Explanation:
Business risk (uncertainty associated with the ability to forecast EBIT due to factors such as sales variability and operating leverage).
Answer:
$72,700
Explanation:
Data provided in the question:
Purchasing cost = $70,000
Sales tax = $700
Freight charges = $800
Shipping charges = $150
Repair charges = $1,300
Installation cost = $1,050
Now,
Cost of the equipment
= Purchasing cost + Sales tax + Freight charges + Shipping charges + Installation cost
= $70,000 + $700 + $800 + $150 + $1,050
= $72,700
Note: Repair cost is not included in the cost.
