Answer:
sunk cost
Explanation:
Sunk cost is cost that has already been incurred and it cannot be recovered. When making future decisions, sunk cost should not be considered.
The money i paid for the ticket is the sunk cost. I should not consider this cost when making the decision of whether to for the concert or not to
Answer:
Contribution= $214,800
Explanation:
<em>Contribution margin ratio is the proportion of sales revenue that is earned as contribution. </em>
Unit sold = revenue / selling price = 880,000/55 = 16,000 units
Contribution = Sales revenue - variable cost
Variable admin = 4% × 880,000= 35200
Variable selling = 5× 16,000 = 80,000
Contribution = Sales revenue - cost of goods sold - admin - selling
= 880,000 - 550,000- 35200 - 80,000=214,800
Contribution= $214,800
Answer:
a. 5.40%
Explanation:
First, I will calculate the new cost of equity for both stock X and Y:
Required rate of return = risk free rate + (beta x market premium)
Re stock X = 8% + (1.6 x 6%) = 8% + 9.6% = 17.6%
Re stock Y = 8% + (0.7 x 6%) = 8% + 4.2% = 12.2%
The difference between the required rate of return = 17.6% - 12.2% = 5.4%
Answer:
$125,000
Explanation:
Opening values of;
Total assets = $120,000
Total liabilities = $40,000
Total equity = $120,000 - $40,000 = $80,000
During the year,
Total revenues = $140,000
Total expenses = $50,000
Withdrawal by owner = $45,000
The amount withdrawn by the owner reduces the owners equity. This may be deducted from the net income.
Net income from the year = $140,000 - $50,000 - $45,000
= $45,000
This will be added to the opening owner's equity to get the closing owner's equity.
Owner's equity at the end of the year = $80,000 + $45,000
= $125,000
False, in developed nations labor costs are much much higher which is why labor is sent over to less developed countries