Answer:
Promissory Estoppel
Explanation:
Promissory estoppel states that a person who has promised to fulfill a contract cannot go back on the promise even if consideration was yet to be given. The affected party can file suit against the party who refused to fulfill his promise and can claim damages.
Promissory estoppel was created to protect parties under contract from incurring damages due to backing off by the other party. Here, Suzy can sue George on the basis of promissory estoppel.
Answer:
2:1
Explanation:
A firm has a current assets of $300,000
A current liabilities of $100,000
An inventory of $100,000
The quick ratio of the firm can be calculated as follows
Quick ratio= Current assets-inventory/Current liabilities
= $300,000-$100,000/$100,000
= $200,000/$100,000
= 2:1
Hence the quick ratio of the firm is 2:1
Answer:
-$7,621
Explanation:
Calculation to determine the net present value of the machine
Using this formula
Net present value of the machine=(Net cash flow *present value of an annuity at 11%)- Amount invested
Let plug in the formula
Net present value of the machine=($2,800+$26000*2.4437)-$78,000
Net present value of the machine=($28,800*2.4437)-78,000
Net present value of the machine=$70,379-$78,000
Net present value of the machine=-$7,621
Therefore the Net present value of the machine is -$7,621
Answer:
Overhead Rate based on:
Direct labor hours: $12.5 per labor hour
Direct labor expense: 50% of labor cost e.g. $0.5 for every dollar of labor cost
Machine hours: $7.5 per machine hour
Explanation:
Overhead rate is calculated by dividing the total estimated manufacturing overhead to the relevant activity base selected e.g. machine hours, labor hours, labor cost etc.
Overhead rates are calculated for different bases are as follows:
Direct labor hours: $750,000 / 60,000 = $12.5 per hour
Direct labor Expense: $750,000 / 1,500,00 = 50% ($0.5 for every dollar cost of direct labor)
Machine hours: $750,000 / 100,000 = $7.5 per machine hour.
Answer:
Explanation:
1) Desired profit = Invested asset * Rate of return = $700,000*25% = $175,000
2) x - selling price of the product
60,000x - 784,600 = 175,000
60,000x = $959,600
x = $16
Total product cost = Total fixed cost + Total variable cost = (38,700+7500) +
((4.60+1.88+1.33+4.50)*60,000) = 46,200 + 12.31*60,000 = 46,200+738,600 = $784,800
3)
Mark-up percentage = Desired profit/Total product cost = $175,000/$784,800 = 0.2229 = 22.29%
