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3 years ago

The following information was compiled by Frank Ironman Incorporated:

Business

1 answer:

Bumek [7]3 years ago

8 0

Answer:

The correct option is D,$20,000 unfavorable

Explanation:

In the first place, it is noteworthy that fixed overhead flexible budget variance is the between the budgeted overhead cost and the actual fixed overhead incurred.

When actual fixed cost overhead is lower than budgeted,the resultant effect is a favorable variance,where the reverse is the case when the budgeted fixed overhead cost is higher as is the case here.

budgeted fixed overhead costs $200,000

Actual fixed overhead costs ($220,000)

fixed overhead flexible budget variance ($20,000) unfavorable

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Ursula, an employee of Ficus Corporation, is 35 years old and plans to retire in 20 years. The corporation has a qualified retir

True [87]

Answer:

Ursula is not required to include in her current gross income the $2,000 that Ficus contributes to her retirement plan nor the interests that the plan generates.

Only when Ursula starts to withdraw money from her retirement account will she need to pay taxes for it.

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3 years ago

The Plastics Division of Weston Company manufactures plastic molds and then sells them for $70 per unit. Its variable cost is $3

Anna35 [415]

Answer:

The right solution is "$30".

Explanation:

Unless the Plastic Division requires additional production, the Plastic Division would at minimum try to offset its operating expenses even though they have excess extra units which offer.
The variable price seems to be $30 per item, so $30 seems to be the minimum determine the prevalence or transferable price.

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3 years ago

JenBritt Incorporated had a free cash flow (FCF) of $98 million in 2019. The firm projects FCF of $235 million in 2020 and $520

Anna11 [10]

Answer:

Value of the Firm: $ 16, 117,737,003.06‬

Explanation:

We need to calculate the present value of all the future cash flow of the company at his WACC.

For the years 2020 and 2021 we will do the present value of a lump sum:

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

$\frac{235000000}{(1 + 0.09)^{1} } = PV$

PV_2020 215,596,330.28

$\frac{520000000}{(1 + 0.09)^{2} } = PV$

PV_2021 437,673,596.50

Now for the following cash flow, which are perpetuity, we use the Gordon model:

$\frac{FCF_1}{return-growth} = Intrinsic \: Value$

we know grow = 6%

and return = 9%

now for the FCF:

520,000,000 will be for the starting point (0) at which the dividends grow at a certain rate, we calculate next year:

we do 520,000 x (1+ g) = 520,000,000 x 1.06 = 551,200,000

we now solve:

$\frac{551,200,000}{0.09-0.06} = Intrinsic \: Value$

18,373,333,333.33

As this is 2 years into the future we calculate the present value:

$\frac{18373333333.33}{(1 + 0.09)^{2} } = PV$

PV 15,464,467,076.28

We add them and get the total value of the company:

215,596,330.28

437,673,596.50

16, 117,737,003.06‬

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4 years ago

The balance of payments is a record of:___________

makkiz [27]

Your answer is B. the system by which a country tracks all transactions between two nations.
BOP : balance of payments

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3 years ago

A firm is a pure monopoly when: Group of answer choices there are only a few other very large firms selling similar products. it

Verdich [7]

Answer: it is the only seller of a unique product and barriers to entry prevent other sellers from entering the market in the long run.

Explanation:

A pure monopoly is referred to as a single supplier of a particular product in an industry. In such market, there no no substitute exists and such firms usually have a large market share.

They are price makers, profit maximizer, discriminate on prices and have a high barriers to entry. Due to their economies of scale, they prevent other sellers from entering the market in the long run.

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3 years ago