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4 years ago

Garry's Corporation's most recent production budget indicates the following required production:

Business

1 answer:

quester [9]4 years ago

5 0

Answer:

Option B,793,750 is the correct option

Explanation:

October November December

Production(210,000,175,000,110,000)*5 1,050,000 875,000 550,000

Opening inventory - (218,750) (137,500)

Closing inventory(25% of next production) 218,750 137,500 -

November purchases of raw material 793,750

October closing inventory =25%*875,000

November closing inventory=25%**550,000

= 137,500.00

The quantity of raw materials to be purchased in November is 793,750

The rationale is that opening inventory of raw materials is already in stock hence should be deducted from planned production volume

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Find the cost of equity for Consolidated Wheels and Axles Inc. using the information below: The firm's beta estimate is 0.9 The

SpyIntel [72]

Answer:

r or expected rate of return = 0.1077 or 10.77%

Explanation:

Using the CAPM, we can calculate the required/expected rate of return on a stock. This is the minimum return required by the investors to invest in a stock based on its systematic risk, the market's risk premium and the risk free rate.

The formula for required rate of return under CAPM is,

r = rRF + Beta * rpM

Where,

rRF is the risk free rate

rpM is the market risk premium

r = 0.051 + 0.9 * 0.063

r or expected rate of return = 0.1077 or 10.77%

8 0

3 years ago

Prepare the correcting entry.

Ostrovityanka [42]

You have to submit the one that is not working properly in a timely fashion but it’s a very nice way

3 0

3 years ago

Muhammad, a 21-year old computer engineer, is opening an individual retirement account (IRA) at a bank. His goal is to accumulat

zavuch27 [327]

Answer:

The first annual depoisit will be of 3,373.49 dollars

Explanation:

Given the formula for future growing annuity

we need to solve for the yearly payment:

grow rate: 0.04

annual effective rate: 8% compounding semiannually:

$(/1+0.08/2)^2-1 = r_e\\$

r= 0.0816

FV 2,500,000

n 46

<em><u>Formula for future value fo an ordinary annuity:</u></em>

$C_0 \times \frac{(1+r)^n-(1+g)^n}{r-g} = FV$

$C_0 \times \frac{(1+0.0816)^{46}-(1+0.04)^{46}}{0.0816-0.04} = 2,500,000\\C_0 = $3,373.4855$

The first annual depoisit will be of 3,373.49 dollars

3 0

3 years ago

MM Co. predicts sales of $30,000 for May. MM Co. pays a sales manager a monthly salary of $3,000 plus a commission of 6% of sale

-Dominant- [34]

Answer:

A) Budgeted sales with increase= $32400

B) Budgeted selling expenses = $5916

Explanation:

The requirement is as follows:

Assuming that MM Co. switches to this more suitable packaging, compute budgeted sales and selling expenses.

This is a simple question in which we have to incorporate increases/decreases in certain figures to give updated figures, because MM Co. wants to see likely financial benefits arising due to the switch.

A) Budgeted sales:

As a result of switching to this more suitable packaging MM Co expects sales to increase by 8% which means the new budgeted sales value will be 108% of current sales, see as follows;

Budgeted sales with increase= $30000× 108%

Monthly budgeted sales with increase= $32400

B) Budgeted selling expenses:

Now selling expenses include sales manager's monthly salary plus commission and shipping costs. Lets first incorporate changes in shipping costs and managers commission as follows:

New shipping costs= $32400× 3%

New shipping costs= $972

Because the decrease in shipping costs occurs after the switch therefore the new shipping costs will be computed on new sales value.

Managers' salary would remain same but the commission amount will increase as it's calculated on sales dollars, see as follows:-

Manager's commission = $32400× 6%

Manager's commission = $1944

Now lets substitute values to get budgeted selling expenses as follows:

Budgeted selling expenses = $3000 + $1944 + $972

Budgeted selling expenses = $5916

4 0

4 years ago

SBD Phone Company sells its waterproof phone case for $108 per unit. Fixed costs total $227,000, and variable costs are $48 per

Bond [772]

Answer:

unit required = 7175 units

Explanation:

given data

sells phone case = $108 per unit

Fixed costs total = $227,000

variable costs = $48 per unit

pretax income = $203,500

solution

we get here first Contribution Per Unit that is

Contribution Per Unit = sells phone case - variable costs .............1

Contribution Per Unit = $108 - $48

Contribution Per Unit = $60

so here units of product required is

unit required = $\frac{pre\ tax\ income+ fixed\ cost}{Contribution\ Per\ Unit}$ ....................2

put here value

unit required = $\frac{203500+227000}{60}$

unit required = 7175 units

3 0

3 years ago