Which of the following is an example of a service business?
1 answer:
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Answer:
The product cost for 24,500 units is $497,350.
Explanation:
The reason is that the the product cost always includes all the variable production cost and specific fixed production cost. In this scenario, direct material cost, direct labor cost, variable manufacturing overhead cost are variable production cost whereas the fixed manufacturing cost is specific fixed production cost which will form part of product cost. The remainder of the cost left is period cost.
Direct materials (24,500 * $7.7 per unit) $188,650
Direct labor (24,500 * $4.7 per unit) $115,150
Variable manufacturing overhead (24,500 * $2.2 per unit) $53,900
Fixed manufacturing overhead (24,500 * $5.7 per unit) <u>$139,650 </u>
Total product costs $497,350
Answer:
B. 21.8%
Explanation:
Cost of preference capital =
No adjustment of growth rate is done as the dividend on preference capital is constant and do not grow in normal conditions, that is it only differs in exceptional conditions.
therefore, in the given instance we have,
Dividend = $2.40
Current price = $11
Expected Return = = 21.8%
Thus correct option is
B. 21.8%