Calculation of rate of return on the investment:
It is given that the uncle invested $118,000 in an investment 6 years ago. The investment is worth now $237,500. It means the interest earned on the investment is (237500-118000) =$119,500
The interest rate can be calculated as follows:
Interest rate = Interest Earned / (Amount invested * Years)
= 119500 / (118000*6)
=119500 / 708000
=0.1688
=16.88%
Hence the annual interest rate (rate of return) on the investment during this period must be <u>16.88% </u>per year.
Answer:
the minimum acceptable price of this special order is $410.
Explanation:
Minimum acceptable price for the special order is the price that gives a Incremental<em> contribution margin of zero</em> or <em>a price that covers all costs related to supporting the special offer</em>.
Since the company has <em>excess capacity</em>, ignore the fixed costs as these are irrelevant for this decision
Costs to Provide for the Special Offer : Minimum acceptable price
Direct materials $150
Direct labor $60
Manufacturing support $105
Marketing costs $95
Minimum acceptable price $410
Answer:
14,100 Units
Explanation:
<u>Calculation of Units completed in June:</u>
Units completed in June = WIP Beginning inventory + Units transferred in – WIP Ending inventory
Units completed in June = 3,900 units + 13,300 units - 3,100 units
Units completed in June = 14,100 Units
Answer:
The correct answer to the following question is $36,000.
Explanation:
Given information -
Units anticipated to be produced - 300,000 units
Variable cost - $150,000
Fixed cost - $600,000
Beginning inventory - 5000 units
Ending inventory - 7000 units
Income under absorption costing - $40,000
Now under the absorption costing, rate of fixed overhead cost per unit -
Fixed cost / Number of units produced
= $600,000 / 300,000
= $2
In April ( under absorption costing ), the amount of fixed manufacturing overhead cost that was still embedded in ending inventory but were not expense -
Fixed overhead rate per unit x number of units produced but not sold
= $2 x 2000 ( 7000 units - 5000 units )
= $4000
So when we calculate the operating cost under variable costing this fixed overhead cost wold be subtracted from total income -
$40,000 - $4000
= $36,000 .
Answer:
True
Explanation:
A ritual is an activity that consists of different rites, activities, etc, performed in a place at a particular time.
From the question, placing a car on the highest point of the engineering building is something that the engineering school has become synonymous with. It has become a ritual because it has to happen every year. It is an activity thta a year isn't complete without.
I hope this helps.