Complete question:
A. The portion of the funding that should be allocated to tax-free investments
B. The portion of the funding that should be maintained in readily accessible funds such as money market instruments
C. The customer's preference for investing via passively managed index mutual funds or via actively managed mutual funds
D. The investment philosophy and strategies employed by the fund manager of the chosen mutual fund
Answer:
The best answer is D
" The investment philosophy and strategies employed by the fund manager of the chosen mutual fund "
Explanation:
Since this person is rich and potentially in a high taxation role, the allocation of part of the assets in tax free municipal investments should be taken into consideration.
An emergency fund should always be maintained, so consideration should be given to the amount of funding allocated to money market fund investments. It should also be considered whether the customer believes in the management of passive assets or active assets.
Passive asset managers believe in the use of low-cost index funds -with the idea that nobody can do better than the market over time. Active asset managers believe that the correct "picking" of stocks enables a manager to surpass the market. The actual trading strategies employed by an active manager to achieve his results are not relevant to the portfolio construction.
Answer:
1. $53.75 per direct labor hour
2. $80.625 per machine hour
Explanation:
Total manufacturing overhead costs= $1112500+$500000 = $1612500
Total direct labor hours= 11000+19000=30000
Total machine hours= 5000+15000=20000
1. Company’s single plantwide overhead rate based on direct labor hours
= Estimated overhead costs/Estimated direct labor hours
=$1612500/30000
=$53.75 per direct labor hour
2. Company’s single plantwide overhead rate based on machine hours
= Estimated overhead costs/Estimated Machine hours
=$1612500/20000
=$80.625 per machine hour
Answer:
Purchases= 17,200 pounds
Explanation:
Giving the following information:
Production in units:
Month 1= 16,000 units
Month 2= 22,000 units
One pound of materials is required for each finished unit.
The inventory of materials at the end of each month should equal 20% of the following month's production needs.
Beginning inventory= 3,200 lbs.
To calculate the direct material required, we need to use the following formula:
Purchases= production + desired ending inventory - beginning inventory
Purchases= 16,000 + 22,000*0.2 - 3,200
Purchases= 17,200 pounds
Answer:
Number of units that must be sold to earn the target profit is 3000 units.
The contribution margin ratio is 0.70
Explanation:
We will use the break even analysis modified for target profit to calculate the number of units needed to earn the desired
The break even point in units is calculated by dividing the fixed cost by the contribution margin per unit. To calculate the number of units required to earn the desired profit, we add the desired profit to fixed cost and divide it by the contribution margin per unit.
Contribution margin per unit = 250 - 75 = $175
Number of units required to earn target profit = (325000 + 200000) / 175
Number of units required to earn target profit = 3000 units
The contribution margin ratio is = 175 / 250 = 0.7 or 70%
Dollar Sales required to earn target profit = $4,812,500
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