Answer:
$500,000
Explanation:
The computation of total manufacturing cost is shown below:-
Flexible Budget Manufacturing Cost = Variable cost of Manufacturing at actual units + Estimated Fixed Manufacturing Costs at the budgeted Units
= (8,000 Units × $50 per unit) + (5,000 Units × $20 per unit)
= 400,000 + 100,000
= $500,000
So, for computing the Flexible Budget Manufacturing Cost we simply applied the above formula.
Answer:
8.934%
Explanation:
r(m) = r(f) + [b × r(p)]
r(m) = expected return = 9.975%
r(f) = risk free rate = 2%
b = beta = 1.45
r(p) = risk premium
so,r(p) = (9.975 - 2) ÷ 1.45
= 5.5%
for portfolio,
r(m) = r(f) + (b1 × w1 + b2 × w2) × r(p)
b1 = 1.45, w1 = (5 ÷ 5.5), b2 = 1.25, w2 = (0.5 ÷ 5.5)
r(m) = 2 + [1.45 × (5/5.5) + 1.25 × (0.5/5.5)] + 5.5
= 2 + 1.32 + 0.114 + 5.5
= 8.934%
Answer:
Corporation
Explanation:
The reason is that the company provides laibility shield and also a great opportunity to raise finance through listing in the stock exchange. Furthermore the tax rates in the limited partnerships is higher than the companies required that the profits are not distributed to its shareholders. However in the corporation legal form can be used to defer the income tax by not issuing dividends and reinvesting that money in the business (Tax benefits).
So the best legal form of business is corporation.
Answer:
A
Explanation:
Working capital are the components of the current assets that represents liquidity , readily available for day to day business operation.
It is made up of cash , receivable , payable , inventory balance .
Due to the new development in the business of Butler automotive , there is an upsurge in the demand for oil which has led to the increase in the oil inventory to the tune of $5,000
This means that the required working capital of Butler also has to increase to meet up with the demand.
