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ICE Princess25 [194]
3 years ago
10

Different loan rates. Winthrop Enterprises is a holding company​ (a firm that owns all or most of some other​ companies' outstan

ding​ stock). Winthrop has four subsidiaries. Each subsidiary borrows capital from the parent company for projects. Ervin Company is successful with its projects 93​% of the​ time, Morten Company 76​% of the​ time, Richmond Company 95 % of the​ time, and Garfield Company 82​% of the time. What loan rates should Winthrop Enterprises charge each subsidiary for​ loans?What loan rate should Winthrop Enterprises charge Ervin Company for​ loans?
Business
1 answer:
katovenus [111]3 years ago
5 0

Answer:

7.52689%

Explanation:

Ervin Company:To break even with an 93% success rate, Ervin will need to recoup

$1/0.93=$1.0752689.

Hence:

Winthrop should charge a return greater than ($1.0752689/$1.00) -1

=($1.0752689)-1

=0.0752689×100

=7.52689%

Therefore th eloan rate Winthrop Enterprises should charge Ervin Company for​ loans will be 7.52689%

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Answer:

Total Manufacturing cost per unit is $53

Explanation:

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Manufacturing overhead applied = $13 per unit

Total Activity rate = $30

Activity based costing is the method of allocation of overhead to the products / department / projects on the basis of uses of activity by each one.As we know that calculating an activity rate which is similar to predetermined overhead rate.

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4 years ago
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Answer:

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3 years ago
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balu736 [363]

Answer:

The correct answer is B

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The stage of crisis, where the dissolution or the bankruptcy is likely to happen unless the firm completely acknowledge the way it does the business. But the companies lack the resources required to fully change how they should run their business.

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