Answer:
Increase by $31,500
Explanation:
Calculation to determine the operating income
First step is to calculate the Total relevant cost
DIFFERENTIAL ANALYSIS
MAKE BUY
Variable cost $144,900 $0
(2,100*$69)
Fixed cost $46,200 $0
(2,100*55*40%)
Purchase cost $0 (2100*76) = $159,600
Total relevant cost $191,100 $159,600
Now let determine the Increase or decrease of the company's operating income
Increase by =($191,100- $159,600)
Increase by = $31,500
Therefore Buying the valves from the outside supplier instead of making them would cause the company's operating income to: Increase by $31,500
Answer:
70% paid in the month of expenses and remaining paid in next month i.e. (78,400 - 10,000) * 70% = 47,880. (78,400 - 10,000) * 30% = 20,520.
Explanation:
That statement is false. Giving the customer what they want is not always possible or feasible.
Answer:
The question is not clear, but it is assumed that the discount is a rate previously established on the coupon. This can be 10%, 15%, 20%, 25%, etc. For this reason no calculations are made to determine the relationship between what is requested in the question and what Ellen could actually receive as a benefit.
Answer:
The portfolio rate of return is 14%
Explanation:
The portfolio's rate of return is the weighted average of the expected rate of return =s of the individual stocks that form up the portfolio. Thus the formula for rate of return of a portfolio is,
Portfolio rate of return = wA * rA + wB * rB
Where,
- wA is the weight of security A in the portfolio
- wB is the weight of Security B in the portfolio
- rA is the rate of return of Stock A
- rB is the rate of return of Stock B
So, the portfolio return is,
rP or Portfolio return = 0.5 * 0.1 + 0.5 * 0.18
rP = 0.14 or 14%
