Answer:
Option A Net income will be the same under both variable and absorption costing.
Explanation:
The condition here given is:
Production Units = Sales units
Now under such conditions their is no finished goods and all the fixed costs are absorbed in the units produced in the absorption costing which means all the fixed production costs are part of the cost of goods sold.
In variable costing system, the fixed costs are not absorbed in the units and deducted as period cost.
So this means no cost is left which is not deducted from the revenue and this gives us net income that is same amount when we either use variable costing or use absorption costing. But remember that this is only possible when the production units are equal to sales units.
4 apples and 7 bananas
4 x 0.7 = 2.8
7 x 0.5 = 3.5
2.8 + 3.5 = $6.30
Answer:
B. 12%
Explanation:
Revenue in 2016 = $ 90 million
Revenue in 2017 = $ 100.8 million
Growth during 2016-17 = 100.8 million - 90 million
= $ 10.8 million
Same growth should persist for 2017 -18 which implies the gowth rate forecasted is same as growth rate during 2016-17.
Forecasted growth rate from 2017 to 18
= Growth rate during 2016-17
= (100.8 - 90)/90)
= 0.12
Therefore, we would forecast a revenue growth rate of 12%.
The net present value of project A that Perit Industies plans to undertake is $-79,009.91.
<h3>What is the net present value?</h3>
Net present value is the present value of after-tax cash flows from an investment less the amount invested.
NPV can be calculated using a financial calculator
- Cash flow in year 0 = -165,000
- Cash flow in year 1 - 6 = 21,00
- Cash flow in year 6 = 9500
I = 14%
NPV = $-79,009.91.
Please find attached the complete question. To learn more about net present value, please check: brainly.com/question/25748668
It will rain with probability 0.8. if it does, you earn $200 and if not, you earn $400. the expected value is: $200.
This is true because the probability of raining is 0.8%, which is 0.2% away from becoming 1.0%, which is 100%. Since you earn $200 if it rains and the probability of rain is the majority, the expected value is $200.
