Answer:
Loss on disposal $1,800
Explanation:
Cost of Asset 26,000
Useful life 5years
Sale proceeds 19,000
Depreciation for the year=$26,000/5=$5,200
Written Down value(WDV)=$26,000-$5,200=$20,800
Loss on Disposal= Sale proceeds- WDV=$19,000-$20,800=$1,800
It is assumed that depreciation is fully charged for the year on asset.
Answer:
<em><u>It would generate a financial disadvantage for 62,800</u></em>
Explanation:
![\left[\begin{array}{cccc}-&continued&discontinued&differential\\Sales&351,900&0&-351,900\\Variable&-260,100&0&260,100\\Contribution&91,800&0&-91,800\\Fixed&-103,000&-74,000&29,000\\total&-11,200&-74,000&-62,800\\\end{array}\right]](https://tex.z-dn.net/?f=%5Cleft%5B%5Cbegin%7Barray%7D%7Bcccc%7D-%26continued%26discontinued%26differential%5C%5CSales%26351%2C900%260%26-351%2C900%5C%5CVariable%26-260%2C100%260%26260%2C100%5C%5CContribution%2691%2C800%260%26-91%2C800%5C%5CFixed%26-103%2C000%26-74%2C000%2629%2C000%5C%5Ctotal%26-11%2C200%26-74%2C000%26-62%2C800%5C%5C%5Cend%7Barray%7D%5Cright%5D)
It would generate a financial disadvantage for 62,800
Because the product, while is having a loss, their contribution cover is enought to cover at least the avoidable fixed cost.
Answer:
The un levered beta ( bu) of the company is 1.52
Explanation:
Given information -
Equity (E) - $20 million
Debt (D) - $5 million
Beta ( levered ) - 1.75
Tax rate ( T ) = 40%
D / E ( Debt to Equity ratio ) = $ 5 million / $20 million = .25
Formula for taking out un levered beta ( bu) is -
Beta levered ( bl ) = Beta un levered ( bu ) [1 + (1 - T ) D / E ]
1.75 = bu [1 + (1 - 40% ) .25
1.75 = bu [1 + .6 x .25 ]
1.75 = bu [ 1 + .15 ]
1.75 = bu [ 1.15 ]
bu = 1.75 / 1.15
bu = 1.52
Answer:
neither
producer surplus
consumer surplus
Explanation:
Consumer surplus is the difference between the willingness to pay of a consumer and the price of the good.
Consumer surplus = willingness to pay – price of the good
Producer surplus is the difference between the price of a good and the least price the seller is willing to sell the product
Producer surplus = price – least price the seller is willing to accept
The first scenario is neither a producer or consumer surplus because a transaction did not take place
The second scenario is a producer surplus.
the producer surplus = 60 - 55 = 5
The third scenario is a consumer surplus
consumer surplus = $114 - $107 = $7
Answer:
Annual withdraw= $143,023.66
Explanation:
Giving the following information:
Present value (PV)= $2,000,000
Number of periods (n)= 57
Interest rate (i)= 7% a year
<u>To calculate the annual withdrawal, we need to use the following formula:</u>
Annual withdraw= (PV*i) / [1 - (1+i)^(-n)]
Annual withdraw= (2,000,000*0.07) / [1 - (1.07^-57)]
Annual withdraw= $143,023.66
