Answer:
25,500 units
Explanation:
Sales units = Opening stock + Production - Closing stock
<em>So, we input the figure with aid of the above formulae</em>
25,000 units = 500 units + Production units - 1,000 units
Production units = 25,000 units - 500 units + 1,000 units
Production units = 25,500 units.
So, the number of units set forth in the production budget, representing total production for the current period is 25,500 units.
Answer:
133 acres of sugar cane
and 300 of soybean provide a profit of $ 733,000
Explanation:
We setup the fromulas and use excel solver:
labor hours: 3 x sugar acres + 4 x soybean <= 1,600
profit = 1,000 x sugar acres + 2,000 soybean
with the restriction soybean <= 300
SOLVER
acres hours PROFIT
sugar cane 133 x 3 = 399 x 1,000 = 133,000
soybeans 300 x 4 = 1,200 x 2,000 =<u> 600,000 </u>
TOTAL 733,000
Answer:
$35,000
Explanation:
Since this is an operating lease (short lease term, no transfer of ownership, and low present value of lease payments), the lessor has to record a depreciation expense, but the lessee only considers lease payments as operating costs (no depreciation expense or lease liability should be recognized).
Depreciation expense per year under the straight line method = asset cost / useful life = $280,000 / 8 years = $35,000
Answer:
a concept that explains how a customer’s choices affect which products a business should continue to supply in the market
Explanation:
In simple words, Dollar voting relates to the example used only to relate to the effect of consumer demand on the behavior of suppliers via the stream of consumer purchases for their commodities to the suppliers.
In the potential, goods which people purchase will continue to be made. Throughout the future, product lines which are not selling as well as anticipated will probably have fewer productive assets. Efficiently, customers vote for "finalists" as well as "whiners" with their transactions as per this metaphor.
Answer:
Under CAPM:
Re = Rf + Beta(Rm - Rf)
Rf = 5%
Rm - Rf = 6%
Beta = 1.25
Re = 5% + (1.25 x 6%) = 12.5%
Under dividend discount model:
Re = (Div₁ / P₀) + g
Div₁ = $1.20
P₀ = $35
g = 8%
Re = ($1.20 / $35) + 8% = 11.43%
Under bond yield plus risk premium approach:
Re = Pre-tax cost of debt + risk premium over its own debt
Pre-tax cost of debt = 7%
risk premium over its own debt = 4%
Re = 7% + 4% = 11%
The highest cost of equity results from the CAPM model and it is 12.5% while the lowest results from using the bond yield plus risk approach (11%), the difference is 1.5% between them.
