Answer:
It is a disadvantage to continue processing QI. The lost on profit is= $5500
Explanation:
Product QI has been allocated $18,300 of the total joint costs of $39,000.
A total of 2,500 units of product QI are produced.
Product QI can be sold at the split-off point for $14 per unit.
It can be processed further for an additional total cost of $10,500 and then sold for $16 per unit.
<u>Split-off point:</u>
Sales= 2500q*$14=$35000
Total cost=$18300
Profit=$16700
<u>Post-split-off:</u>
Sales=2500*16=$40000
Cost previous split-off=$18300
Added cost= $10500
Profit=$11200
Comparing profits (16700>11200) it is not beneficial to continue processing QI products.
Answer:
The company's current ratio is 1.25.
Explanation:
The current ratio is calculated by dividing the current assets by the current liabilities:
current assets=$50000
current liabilities=$40000
current ratio=$50000/$40000
current ratio=1.25
According to this, the answer is that the company's current ratio is 1.25.
Answer:
A negative shock to oil prices will mean that now production becomes cheaper. This will cause the aggregate supply curve to shift rightwards and cause prices to fall and the output level to increase. The fall in prices will be short term however as over time the prices will adjust upwards to the point A which is the original market price.
Answer:
(B) are established primarily through negotiation.
Explanation:
Transportation rates can be referred to as the cost paid by users for transportation services. They are the negotiated economic cost of moving a traveler or a unit of freight between a specific origin and location. Rates are often visible to the consumers since transport service providers must provide this information to secure transactions.
In transportation, the scale of operations change by:
- Adding more vehicles to the fleet
- Adding more cars to a train
- Increasing the size of vehicles
- Operating in a larger network
Answer:
19%
Overvalued
Explanation:
Computation for the return the firm should earn
Using this formula
The firm's required return=Risk-free rate+Beta×( Expected return-Risk-free rate)
Let plug in the formula
The firm's required return = 4% + 1.5 x (14% - 4%)
The firm's required return =4%+1.5×10%
The firm's required return =0.19*100
The firm's required return =19%
Based on the above calculation the firm's required return is 19% in which the manager believes a 16% return will be achieved which means that manager is saying the firm is OVERVALUED relative to their own estimate.