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3 years ago

Kulvekowski Company has budgeted sales of $30,000 with the following budgeted costs:

Business

1 answer:

anyanavicka [17]3 years ago

7 0

Answer:

Option (c) is correct.

Explanation:

Given that,

Sales = $30,000

Direct materials = $6,300

Direct labor = $4,100

Variable factory overhead = $3,700

Fixed factory overhead = $5,600

Variable selling and administrative costs = $2,400

Fixed selling and administrative costs = $3,200

Total variable cost:

= Direct Material + Direct labor + Variable factory overhead + Variable selling and administrative costs

= $6,300 + $4,100 + $3,700 + $2,400

= $16,500

Total fixed cost:

= Fixed factory overhead + Fixed selling and administrative costs

= $5,600 + $3,200

= $8,800

Total cost = Fixed cost + Variable cost

= $8,800 + $16,500

= $25,300

Profit = Sales - Total cost

= $30,000 - $25,300

= $4,700

Mark Up as percentage of cost:

= (Profit ÷ cost) × 100

= ($4,700 ÷ $25,300) × 100

= 18.6%

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1 year ago

Exodus Limousine Company has $1,000 par value bonds outstanding at 15 percent interest. The bonds will mature in 30 years. Compu

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if YTM at 4% price : $2,902.1237

if YTM at 8% price : $1,788.0448

The bonds are above face value asthey offer a higher coupon payment than the market yield therefore the bond holders are willing to pay above theri face value

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$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 150.000

time 30

rate 0.04

$150 \times \frac{1-(1+0.04)^{-30} }{0.04} = PV\\$

PV $2,593.8050

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity 1,000.00

time 30.00

rate 0.04

$\frac{1000}{(1 + 0.04)^{30} } = PV$

PV 308.32

PV c $2,593.8050

PV m $308.3187

Total $2,902.1237

No we repeat the process with the yield at 8%

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 150.000

time 30

rate 0.08

$150 \times \frac{1-(1+0.08)^{-30} }{0.08} = PV\\$

PV $1,688.6675

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity 1,000.00

time 30.00

rate 0.08

$\frac{1000}{(1 + 0.08)^{30} } = PV$

PV 99.38

PV c $1,688.6675

PV m $99.3773

Total $1,788.0448

7 0

3 years ago

Kulvekowski Company has budgeted sales of​ $30,000 with the following budgeted​ costs:

Kulvekowski Company has budgeted sales of $30,000 with the following budgeted costs: