Answer:
Compare the $315,000 cost to refinish the tables with the incremental revenue of $300,000 if the tables are refinished.
Explanation:
If the tables are sold now, they would cost $305000. If an additional $315000 is spent to refinish the table, the table would the be sold for $605000, that means there would be an additional revenue of $300000 ($605000 - $305000). The company are already operating at a loss as a result of improperly finishing the table. In deciding whether to rework the tables or sell them, the company should compare the $315,000 cost to refinish the tables with the incremental revenue of $300,000 if the tables are refinished.
Answer: $14.5 million
Explanation:
The following information can be gotten from the question;
Total equipment cost = $4.2 million
Direct cost factor = 1.52
Indirect cos factor = 0.37
The total plant cost will then be calculated as:
= 4.2 × (1 + 1.52) × (1 + 0.37)
= 4.2 × 2.52 × 1.37
= 14.5
Therefore, the total plant cost is $14.5 million
Answer:
10.29 %
Explanation:
The interest rate that is required by the bank by the law to report to potential borrowers can be calculated by the following expression.
Interest rate to be reported = ![[(1+EAR)^{1/n}-1]*n](https://tex.z-dn.net/?f=%5B%281%2BEAR%29%5E%7B1%2Fn%7D-1%5D%2An)
where
EAR = effective annual return rate = 11% = 0.11
n = number of days in a year = 365 days
replacing our values into the above equation; we have:
⇒ ![[(1+0.11)^{1/365}-1]*365](https://tex.z-dn.net/?f=%5B%281%2B0.11%29%5E%7B1%2F365%7D-1%5D%2A365)
= ![[1.11^{(0.0027)}-1]*365](https://tex.z-dn.net/?f=%5B1.11%5E%7B%280.0027%29%7D-1%5D%2A365)
= ![[1.00028182-1]*365](https://tex.z-dn.net/?f=%5B1.00028182-1%5D%2A365)
= 
= 0.1029
= 10.29 %
Thus, the interest rate the bank is required by law to report to potential borrowers = 10.29%
Answer:
a.Elasticity of demand is p = k/q (an inverse relationship between the price and quantity)
b.My answer in part (a) means that an increase in the price of the item will lead to a decrease in its demand, hence the following applies
1.All prices are critical points of the revenue function.
2.Revenue is increased by lowering the price
Answer:
3,220 units
Explanation:
The computation of the material quantity variance is shown below:
Direct material quantity variance = Standard Price × (Standard Quantity - Actual Quantity)
$750 = 2 gallons × $12.50 × (6,500 gallons ÷ 2 - actual quantity)
$750 = $25 × (6,500 gallons ÷ 2 - actual quantity)
$30 = 3,250 - actual quantity
So, the actual quantity would be
= 3,250 - $30
= 3,220 units
The Standard Price is computed below:
= 2 gallons × $12.50
The standard quantity is computed below:
= 6,500 gallons ÷ 2
= 3,250 units
