The definition of liquidity is how easily an investment can be exchanged for cash. Hope this helps!
Answer:
The optimal production batch size for the supplier is 980 units.
Explanation:
In order to calcuate the optimal production batch size for the supplier we have to use the following formula:
optimal production batch size= 
(<u>2×Annual Demand×setup cost)</u>
Holding Cost
optimal production batch size= (<u>2×(1,000×12)×($250×4)</u>
($100×25%)
optimal production batch size=(<u>2×12,000×$1,000)</u>
$25
optimal production batch size= 980 units
Answer:
weighted average cost of capital = 13.10%
Explanation:
given data
Debt = 35%
Preferred stock = 15
Common equity = 50
cost of debt = 9 percent
cost of preferred stock = 13 percent
cost of common equity = 16 percent
to find out
Weighted Average cost of capital
solution
we get here weighted cost of each source of capital that is
Weighted Cost of Debt = 0.35 * 9% = 3.15 % ....................1
Weighted Cost of Preferred Stock = 0.15 * 13% = 1.95% .........2
Weighted Cost of Common Stock = 0.50 * 16% = 8 % ..............3
so
so weighted average cost of capital will be
weighted average cost of capital = 3.15 % + 1.95% + 8 %
weighted average cost of capital = 13.10%
Answer:
A) Increase Decrease
Explanation:
As we know that
Mixed cost is the combination of both fixed cost and the variable cost
Mixed costs are costs in which one component of cost is Fixed and the other component is variable
In equation form,
Mixed cost = Fixed cost + variable cost
In the case of variable cost, the per unit would remain the same and it increased when production increases
But the fixed cost amount would remain the same but if the production rises the per unit declines
Similarly, Fixed costs remain the same in Total and decreases per unit with increase in production
Therefore option A is correct
Answer: 57,550 units
Explanation:
When using the weighted average method, the units completed and transferred out are assumed to include the opening inventory.
The weighted average equivalent units are therefore:
= Units completed and transferred out + Equivalent ending units
= 57,000 + (10% * 5,500)
= 57,000 + 550
= 57,550 units
