Answer:
r or expected rate of return = 0.1077 or 10.77%
Explanation:
Using the CAPM, we can calculate the required/expected rate of return on a stock. This is the minimum return required by the investors to invest in a stock based on its systematic risk, the market's risk premium and the risk free rate.
The formula for required rate of return under CAPM is,
r = rRF + Beta * rpM
Where,
- rRF is the risk free rate
- rpM is the market risk premium
r = 0.051 + 0.9 * 0.063
r or expected rate of return = 0.1077 or 10.77%
Answer:
Increases by $66,800.
Explanation:
Given that,
Direct materials = $ 200
Direct labor = 80
Manufacturing overhead (30% variable) = 150
Selling expenses (50% variable) = 50
Administrative expenses (10% variable) = 80
Total per unit = $560
If accept this offer,
Total cost:
= Material + Labor + Manufacturing overhead + Administrative
= $200 + $80 + (30% × 150) + (10% × 80)
= $200 + $80 + $45 + $8
= $333
Contribution margin per unit:
= Selling price - Variable cost
= $500 - $333
= $167
Increase in profits:
= Contribution margin per unit × Number of units offer to purchase
= $167 × 400 units
= $66,800
Basic Checking account vs interest-bearing checking account.
The main difference of these two accounts is the interest.
Basic checking account does not earn interest. Regardless of how long the money stays in the bank, whatever amount it is, it is still the same amount.
Interest-bearing checking account as the name implies earns interest. Sometimes, it must maintain a certain amount for it to earn interest.
Both accounts may have atm access or online/mobile access aside from its check book. Both accounts may also be subject to penalties if its balances fall below the required minimum maintaining account.
Answer:
$4,000
Explanation:
Preparation of the journal entry.
Based on the information given we were told that The indirect materials totaled the amount of $4,000 which means that the appropriate journal entry to record this requisition would include a DEBIT TO MANUFACTURING OVERHEAD of the amount of $4,000.
(To record requisition)
