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scoray [572]
3 years ago
5

Washington Company has two divisions: the Adams Division and the Jefferson Division. The following information pertains to last

year's results: Adams Division Jefferson Division Net (after-tax) income $ 605,000 $ 315,000 Total capital employed 4,000,000 3,250,000 Washington's actual cost of capital was 12%.
Required: 1. Calculate the EVA for the Adams Division. If required, enter a negative EVA as a negative number by entering your answer with the minus sign. 605,000 315,000 4,000,000 3,250,000 2. Calculate the EVA for the Jefferson Division. If required, enter a negative EVA as a negative number by entering your answer with the minus sign.
Business
1 answer:
Gwar [14]3 years ago
4 0

Answer:

$125,000 and -$75,000

Explanation:

The computation of the economic value added is shown below:

As we know that

Economic Value Added is

= Net (after-tax) income - (Capital employed × Actual cost of capital)

For Adams Division, it is

= $605,000 - ($4,000,000 × 12%)

= $605,000 - $480,000

= $125,000

And for Jefferson Division, it is

= $315,000 - ($3,250,000 × 12%)

= $315,000 - $390,000

= -$75,000

We simply applied the above formulas

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3 years ago
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nordsb [41]

Answer:

The correct answer is D.

Explanation:

Giving the following information:

Next year's overhead is estimated to be $338,250.

Direct labor costs $28 per hour and the company expects to manufacture 22,000 units of CC1 and 91,000 units of CC2 next year.

CC1: Direct Labor Dollars Per Unit $22.40

CC2: Direct Labor Dollars Per Unit $15.40

First, we need to calculate the number of direct labor hours required:

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CC2= 15.4/28= 0.55 direct labor hours per unit

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CC2= 91,000* 0.55= 50,050 hours

Total= 67,650 hours

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Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

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4 0
3 years ago
What is the difference between an Oligopoly and a Monopoly?
Sergeeva-Olga [200]

A monopoly and an oligopoly are economic market structures where there is imperfect competition in the market. A monopoly market contains a single firm that produces goods with no close substitute, with significant barriers to entry of other firms. An oligopoly market has a small number of relatively large firms that produce similar but slightly different products. Again, there are significant barriers to entry for other enterprises.

The geographical size of the market can determine whether there is an oligopoly or a monopoly. A firm may dominate an industry in a particular area where there are no alternatives to the same product but have two or three similar companies operating nationwide. Thus, the firm may be a monopoly in a region but operate in an oligopoly market in a larger geographical area.

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8 0
3 years ago
Suppose you owe $3,000 on your credit card. You pay a minimum payment of $30 each month. At an Annual Percentage Rate of 12% (or
lianna [129]

Answer:

Never, you will continue to be in debt

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3,000 x 1% = 30 interest per month

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3 years ago
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statuscvo [17]

Answer:

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6 0
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