Answer:
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Explanation:
Last one: Accounts payable balance
Particulars $
Beginning balance 14500
Add: Direct material purchase-35000*30% 10500
Total 25000
Less: beginning balance paid (14500)
Ending balance 10500
Answer:
48,497.42 containers
Explanation:
<em>The economic order quantity (EOQ) is a model that is used to determine the optimum order size that minimizes the balance of carrying and ordering cost.</em>
T<em>his model can also be modified to determine the optimum batch quantity, that is the number of units to produced in a production run. The model is given below </em>
EOQ = √2× Co× D/Ch
EOQ - economic production run, Co- set up cost per run, Ch- carrying cost per unit per year, D- demand
EOQ = 2 √2× 490× 1,200,000/0.5
EOQ = 48,497.42 containers
Neilsen should produce 48,497.42 containers per production run in order to minimize the production cost
Answer:
Option (B) is correct.
Explanation:
Given that smartphones are a normal good and income of the individuals increases because of economic boom. We know that there is a direct relationship between the income of an individual and demand for normal goods.
Increase in the income level of the individuals will result in higher demand for smartphones. This will shift the demand curve of smartphones rightwards.
Simultaneously, the wages of sales representatives who work for cell phone companies also increases. This will increase the cost of production for the firms and shifts the supply curve of smartphones leftwards.
Hence, the equilibrium price of smartphones increases but the effect on equilibrium quantity is indeterminate because its effect will be depend upon the magnitude of the shift of supply and demand curve.
Answer:
B. Natural barriers cannot prevent the entry of new firms.
Explanation:
Natural barriers cannot prevent the entry of new firms as firms should be free to enter and exit the industry. Every firm's actions or dealings influence the profits of all the other firms.
Answer:
The firm's optimal capital structure is 80% Debt and 20% Equity.
The WACC at this optimal capital structure is 10.28%.
Explanation:
Note: See the attached excel file the computation of the weighted average cost of capital (WACC) at the optimal capital structure. Also note that the data in the question are merged together but they are sorted in the attached excel file before answering the question.
The optimal capital structure of a firm can be described as a combination of debt and equity financing that is the beat in which market value of the firm is maximized while its cost of capital is minimized.
Using the weighted average cost of capital (WACC), the optimal capital cost capital structure occurs at a point where the WACC is the lowest.
From the attached excel file, the lowest WACC is 0.1028, or 10.28%. At this firm Market Debt- to-Value Ratio (wd) which is debt is 0.80 (i.e. 80%), and Market Equity-to-Value Ratio (ws) which is equity is 0.20 (i.e. 20%).
Therefore, the firm's optimal capital structure is 80% Debt and 20% Equity.
The WACC at this optimal capital structure is 10.28%.
