Answer: $57,000
Explanation:
Given that,
Beginning finished goods inventory in units = 0
Units produced = 7,000
Units sold = 5,100
Sales = $663,000
Materials cost = $140,000
Variable conversion cost used = $70,000
Fixed manufacturing cost = $490,000
Indirect operating costs (fixed) = $102,000
Total Variable cost of units produced = Materials cost + Variable conversion cost used
= $140,000 + $70,000
= $210,000

=
= $30
Units in ending inventory = Units produced - Units sold
= 7,000 - 5,100
= 1,900
Value of Variable costing ending inventory = Units in ending inventory × Variable cost per unit
= 1,900 × $30
= $57,000
Galoshes increase their labor by 85.8% if there is a decrease in 37.4% in wages using elasticity of labor.
Elasticity of labor is defined as the percentage change in demand for labor to percentage change in demand for labor to percentage change in wage rate.
Elasticity of labor= % demand of labor/% change in wage rate
Let % wage decrease be x
Δ demand for labor =L
i) Galorhes R = ΔL/-Δx = -2.3
ii) Emerson R = ΔL/-ΔX= -3.2
III) Wayne= ΔL/-ΔX= 1.7
iv) Bull stearns = ΔL/-Δx= 4.6
Therefore, emerson,lake and palmer increases the amounts
Hence 2nd option
2) Galorhes R= ΔL--37.3=-2.3
= 37.3× 2.3
= 85.79%
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The correct answer is yes the money increase because it’s just right
Answer:
1. The Value of a levered firm can be calculated using WACC which means that if you have the Value, you can compute WACC.
The formula is;
Value of leveraged firm = Free cash-flow/ (WACC - Growth rate)
Value of leveraged firm = Value of Equity + Value of Debt
= 100 + 40
= $140 million
Value of leveraged firm = Free cash-flow/ (WACC - Growth rate)
140 = 7 ( WACC - 3%)
140 * WACC - 4.2 = 7
WACC = 0.08
= 8%
2. Interest tax shield = Value of leveraged firm - Value of unleveraged firm
Value of unleveraged Firm = Free Cash Flow/ WACC before tax - Growth rate
WACC before tax = WACC + (Debt/(Debt + Equity))*Cost of Debt*(Tax Rate)
= 8% + (40/ 140) * 7.5%(35%)
= 8.75%
Value of unleveraged Firm = Free Cash Flow/ WACC before tax - Growth rate
= 7 /( 8.75% - 3%)
= $121.74 million
= $122 million
Interest tax shield = Value of leveraged firm - Value of unleveraged firm
= 140 - 122
= $18 million