What is the cheapest way for college students to call home

Curly Inc. is considering whether to continue to make a component or to buy it from an outside supplier. The company uses 16,000

Brut [27]

Answer:

the maximum price the company can pay for the component is $24.65

Explanation:

direct materials: $8.10 per unit
direct labor: $6.40 per unit
variable manufacturing overhead: $1.70 per unit
fixed manufacturing overhead: $4.40 per unit
total variable costs: $20.60 per unit

Current total manufacturing costs for 16,000 units = $20.60 x 16,000 units = $329,600

if the component is bought, 30% of fixed costs can be avoided = $4.40 x 16,000 x 30% = $21,120 or $1.32

or the machine can be used to manufacture another product that has a contribution margin of $8.10 per unit and a total production of 8,000 units = $8.10 x 8,000 = $64,800 or $4.05 per unit

by purchasing the component from a vendor, the company will save either $1.32 or $4.05 per unit

therefore the company should purchase the component if its maximum price is = $20.60 + $4.05 = $24.65

3 0

3 years ago

Consider the following information and then calculate the required rate of return for the Global Investment Fund, which holds 4

Mrac [35]

Answer:

r Portfolio = 0.1489 or 14.89%

Explanation:

To calculate the required rate of return of Global Investment Fund's portfolio, we first need to determine the return on Market (rM) using the CAPM equation for required rate of return.

r = rRF + Beta * (rM - rRF)

Where,

rRF is the risk free rate

We already know the required rate of return for the market and the risk free rate. The beta for market is always 1. SO, the return on market is also 13.25% because at a beta of 1, the return on market and the required rate of return on market is same.

Now we need to calculate the required rate of return of each stock and then calculate the weighted average of the required rate of returns of each stock to calculate the required rate of return for the Global Investment Fund.

r A = 0.07 + 1.5 * (0.1325 - 0.07)

r A = 0.16375 or 16.375%

r B = 0.07 + (0.1325 - 0.07) * -0.5

r B = 0.03875 or 3.875%

r C = 0.07 + 1.25 * (0.1325 - 0.07)

r C = 0.148125 or 14.8125%

r D = 0.07 + 1.75 * (0.1325 - 0.07)

r D = 0.179375 or 17.9375%

Total investment in GIF = 200000 + 300000 + 500000 + 1000000

Total investment in GIF =2000000

required rate of return of Global Investment Fund (GIF) is,

r Portfolio = 0.16375 * 200000/2000000 + 0.03875 * 300000/2000000 +

0.148125 * 500000/2000000 + 0.179375 * 1000000/2000000

r Portfolio = 0.1489 or 14.89%

3 0

3 years ago

Fiscal policy refers to:_____________.

solmaris [256]

Answer:

c. Changes in government expenditures and taxation to achieve particular economic goals.

Explanation:

Fiscal policy is the government tool by which the government alters its spending and the taxation to influence the aggregate demand in the economy.

An expansionary fiscal policy involves means to increase aggregate demand and can include increased government spending and lower taxes. A contractionary monetary policy is used when the government aims to reduce the aggregate demand and thus can either reduce its spending or raise taxes.

Money supply is influenced by monetary policy and other options are wrong and irrelevant to the fiscal policy definition.

Hope that helps.

7 0

4 years ago

Any Burger King restaurant is an example of a _____________.

ICE Princess25 [194]

Answer:

Explanation:

D a franchise

8 0

3 years ago

Read 2 more answers

Condensed financial data of Monty Company for 2020 and 2019 are presented below.

bija089 [108]

Answer:

Monty Company

Statement of Cash Flows

December 31, 2020

Cash flows from operating activities

Net income $790

Adjustments to reconcile net income $40

+ depreciation expense $40

+ decrease in inventory $260

+ increase in accounts payable $300

- gain from sale of investments ($80)

- increase in accounts receivable ($430)

- decrease in accrued liabilities ($50)

Net cash flow from operating activities $830

Cash flows from investing activities

Sale of long term investments $140

Gain from sale of investments $80

Purchases of P, P & E ($190)

Net cash flow from investing activities $30

Cash flow from financing activities

Issuance of Common Stocks $210

- Payments of long term debt ($160)

- Dividends paid ($260)

Net cash from financing activities ($210)

Net increase in cash $650

+ Beginning cash balance $1,160

Ending cash balance $1,810

7 0

3 years ago