Economic profits that are present in the short run.
Answer:
Unitary cost= $56
Explanation:
Giving the following information:
Variable manufacturing overhead $15
Direct materials $13
Direct labor $17
Fixed manufacturing overhead $12
Fixed marketing and administrative $11
Under absorption costing, the fixed overhead is allocated to the product cost:
Unitary cost= direct material + direct labor + variable overhead + fixed overhead
Unitary cost= 13 + 17 + 15 + 11= $56
Answer:
a: 12.8%
Explanation:
Standard Deviation would be calculated with the probability approach since there is probability given in the question.
- Formula of Standard Deviation and the solution is given in the pictures below.
- Although ERR the required part to calculate Standard Deviation is calculated in the text.
Calculating ERR:
ERR= Sum of Probabilities × Rate of returns.
In our question = ERR= 0.2 × 30% + 0.5 × 10% + 0.3 × (-6%) = 0.128 = 12.8%
Thus, by putting all the values in the formula you will get the answer 12.8%.
Answer:
B. The lender would benefit.
Explanation:
Based on the information provided within the question it can be said that in this scenario the one who would benefit from a lower inflation rate would be the lender. That is because by there being a lower inflation rate it means that the money that the borrower needs to pay back the loan does not have the buying power he predicted it would have when he borrowed it. Meaning that he would need to pay more money to the lender than originally anticipated.
Answer:
$15000
Explanation:
All types of bonds have some common characteristics which include;
- A face/par value
- A coupon rate (interest rate).
- Either redeemable/irredeemable or convertible.
The face value of one bond is $1000 so the total value of 300 bonds would be $300,000 (300×$1000). In this example these are redeemable bonds which means Whitefeather Industries would be liable to payback the capital amount of bonds after five years (maturity date).
The coupon rate (i.e interest) is charged on Par value. So the Interest can be calculated as $300,000×10% = $30,000 per year.
In this question interest is payable semi-annually, therefore The amount of interest that occurs on December 31, 2017 is $15000 (For the last six months - July 1st till Dec 31st; $30000×6÷12).
