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Nuetrik [128]
3 years ago
8

You have been working for home-building companies for a number of years. You enjoy construction work, and now you want to start

your own home-building company that you will run yourself You quit your previous job that had been paying $40,000 per year. You have $40,000 in your savings account that you withdraw to start this company. The savings account had been paying you 5% interest. Because the $40,000 from your savings is not enough to start the company, you also borrow $2,300,000 from the bank. (The bank manager is willing to loan you such a large amount because he knows of your reputation and experience in the home-building industry) You use the money to hire workers and buy the tools, machinery, and raw materials with which you will build houses. The cost per worker is $20,000 per year. In your first year, you plan to hire 48 workers to do the construction work, which means that the annual labor cost of your company will be $960,000 (48 x $20,000), With 48 workers, your company can build seven houses. You must also buy raw materials-land, wood, nails, plasterboard, and so forth. Each house requires $20,000 worth of raw materials. The cost of raw materials for seven houses is $140,000 (7 x $20,000). Finally, the bank charges 6% interest on your loan. The interest cost is $138,000 (6% of$2.300,000). 1.5. What are the total fixed costs for your construction company? A. $960,000 B. $42,000 c. $180,000 D. $140,000 E. $1,280,000
Business
2 answers:
hjlf3 years ago
8 0

Answer:

<u>Correct option is D $140,000.</u>

Explanation:

Fixed cost of production is the unrelated to the level of production which remains constant for any number of units of output produced. This accrues to a firm for paying off its fixed factors. Here the fixed payment is $140,000 for 7 houses.

Gala2k [10]3 years ago
5 0

Answer:

The total fixed costs for the construction company is $960000.

Explanation:

Total fixed costs are those costs that are costs that do not change due to production of a product for example in this case we have a cost of raw materials for building 7 houses which is $140000 which variate with the number of houses built and this cost is a variable cost of building a house. The salary for workers is a fixed cost as no matter how many houses the workers build they will still get their salaries of $20000 per worker per year which is in total $960000 for all the workers in the company. Total fixed costs are those costs that are directly involved with the producing of a product but do not change and which in this case it is the salary of workers as also the interest on the loan will be a constant once off amount and is not directly involved in the production of houses.

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Answer:D. Property

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The intellectual property is known as the non-material assets of a company that involves knowledge and company identity; it may include image, know-how, brands, patents, company name, etc. When Shelli rejects to use a design found on the internet, she respects the intellectual property of another company and protect her small boutique from a possible legal infringement.

8 0
3 years ago
Nathaniel is delivering a presentation when an audience member asks a question. Nathaniel answers her question and then says, “W
nordsb [41]
D. Because he is listening to her fully and making sure he fully understands what she is asking
4 0
2 years ago
Comfort chair company manufacturers a standard recliner. During February, the firm's Assembly Department started production of 7
guapka [62]

Answer:

1. a. 81,500

2. $38,481

3. $461,382

Explanation:

<u>The equivalent units for conversion costs during February.</u>

Conversion Costs = 15,700 x 65% + 62,900 x 100% + 10,100 x 85 %

                              = 81,690 units

Material Costs = 15,700 x 0% + 62,900 x 100% + 10,100 x 100 %

                        = 73,000 units

<u>The amount of direct materials cost assigned to ending work-in-process inventory at the end of February.</u>

Step 1 : Determine Cost per Equivalent unit

Conversion Costs = $168,000 ÷ 81,690 units = $2.06

Material Costs = $278,000 ÷ 73,000 units = $3.81

Total Cost = $2.06 + $3.81 = $5.87

Step 2 : Direct Material Cost assigned to ending work-in-process

Ending work-in-process (Material Cost) = 10,100 x $3.81

                                                                 = $38,481

<u>The cost of the goods transferred out during February.</u>

Cost of the goods transferred out = $5.87 x 78,600

                                                        = $461,382

8 0
3 years ago
PandemicsPlus just paid a dividend of $1.00 per share and they consistently grown dividends at 4% annually. Investors require a
oee [108]

Answer:

$13

Explanation:

The current value of the stock can be determined using the constant growth dividend model

according to the constant dividend growth model

price = d1 / (r - g)

d1 = next dividend to be paid

r = cost of equity

g = growth rate

(1 x 1.04) / (0.12 - 0.04) = 13

8 0
3 years ago
Calculate the defects per million opportunities (DPMO) given the following: Blake, owner of Blakester's T-shirt Shoppe, keeps tr
pantera1 [17]

Answer:

His firm's DPMO is 12,083

Explanation:

The computation of the DPMO is shown below:

= (Total complaints ÷ total number of defects opportunity) × 1 million

where,

Total complaints = Shrinkage complaints + poor quality complaints + wear off complaints + fitting issue complaints

= 22 + 16 + 12 + 8

= 58 customers defects

And, the total number of defects opportunity would be equal to

= Number of t-shirts sold × number of possible complaints

= 1,200 × 4

= 4,800

Now put these values to the above formula

So, the value would be equal to

= (58 ÷ 4,800) × 1,000,000

=  12,083

4 0
3 years ago
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