<span>Avoidable cost refers to variable costs that can be avoided. It is a cost that can be foregone by not partaking in or no longer performing an activity that will lead to incurring said cost.For example, a business organization looking for methods to reduce or eliminate expenses often analyze the avoidable costs associated with the project.</span>
Answer:
a. $8.0 million; $1.22 million
Explanation:
The computation is shown below:
As we know that
Basic earnings power = EBIT ÷ total assets
So,
EBIT = Basic earnings power × total assets
= 0.20 × 40 million
= $8 million
Now
Times interest earned = EBIT ÷ interest expense
So,
Interest expense = EBIT ÷ Times interest earned
= $8 million ÷ 6.55
= $1.22 million
Answer:
exculpatory clause
Explanation:
Exculpatory clause in contracts is a clause that protects the person issuing it from liabilities of damages to an asset that may not be in their possession or out of their control. It prevents one party from the holding the other liable for damages to an asset during the execution of a contract. This is what Jack has done to protect himself from the liabilities that may result from any damages during the contract.
Answer: 7 years
Explanation:
There are 50 lights and it will cost $50 to replace each light.
Total replacement cost is therefore;
= $2,500
The company gets to save $350 per year if they use LED bulbs.
= 2,500/350
= 7.14 years
= 7 years
Answer:
Maket value of the comapny $
Market value of bond ($380,000 x 97,4/100) 370,120
Market value of preferred stocks (2,600 x $61) 158,600
Market value of common stocks (37,500 x $19) 712,500
Market value of the company 1,241,220
Weight to assign to common stocks = $712,500/$1,241,220 x 100
= 57.40%
The correct answer is E
Explanation:
The market value of each stock is the number of stocks issued multiplied by current market price. Market value of the company is the aggregate of market value of bond, market value of preferred stocks and market value of common stocks. The weight to be assigned to common stocks is the percentage of market value of common stocks to market value of the company.
