The following that most strongly implied by this information is that at the current level of production, the firm is making a profit of $3000. Jake and Mathew will most likely agree on The firm should increase production from the current level. Mathew is assuming that no new firms enter the market in the short run.
Answer:
The unit sales to earn the target income is 9,000 units
Explanation:
Annual income=Total sales-total expenses
where;
Annual income=$1,550,000
Total sales=Cost per unit sales×number of units sold (n)=(310×n)=310 n
Total expenses=Variable cost+annual fixed cost
Total expenses=(248×n)+992,000
Total expenses=248 n+992,000
Replacing;
1,550,000=310 n-(248 n+992,000)
1,550,000=310 n-248 n-992,000
310 n-248 n=1,550,000-992,000
62 n=558,000
n=558,000/62
n=$9,000
The unit sales to earn the target income is 9,000 units
Answer:
The answer is D
Explanation:
Intrinsic value can be found by simply using the following formula
Put intrinsic value = Strike Price - Current selling price
this gives,
PIV = $45 - $50 = $-5
A put intrinsic value cannot be vegetative as it can be exercised right now at the current price. Thus it is interpreted as 0.
Time value is calculated as follows
Time Value = Option Price - Intrinsic Value
This gives TV = $3.5 - $0 = $3.5
Hope this helps.
The question is incomplete. The complete question is :
On January 1, an investment account is worth 50,000. On May 1, the value has increased to 52,000 and 8,000 of new principal is deposited. At time t, in years, (4/12 < t < 1) the value of the fund has increased to 62,000 and 10,000 is withdrawn. On January 1 of the next year, the investment account is worth 55,000. The approximate dollar-weighted rate of return (using the simple interest approximation) is equal to the time-weighted rate of return for the year. Calculate t.
Solution :
It is given that :
Worth of investment account on 1st Jan = 50,000
Worth of investment account on 1st Jan next year = 55,000
New principal deposited = 8000
Therefore the interest earned = 55,000 - 50,000 - 8,000 + 10,000
= 7,000
Therefore,

= 0.13667
7000 = 0.13667(55,333.33 - 10000 + 10000t)

= 0.5885
Thus, time - weighted rate of the return = 0.5885
Answer:
The question is missing information, however the way to approach the required is presented below in the explanation
Explanation:
When calculating variances it's always important to flex the budgeted information to standard form so we're comparing apples with apples. If we use the actual budgeted figures we can distort the variances and comparisons of information may be useless. For instance if we produce 40 units but budgeted was 50 units we need to work out what was the budgeted cost for 40 units and compare that to the actual cost of 40 units. That is what is meant by flexing to the standard form.
A) The fixed overhead spending variance is the difference between the budgeted and actual fixed overhead expense. This is calculated as follows
Actual fixed overhead - Budgeted fixed overhead = Fixed overhead spending variance $
B) The fixed overhead volume variance is calculated as follows;
Budgeted fixed overhead rate – Fixed overhead rate applied to the units (quantity of production)
C) Variable overhead spending variance is calculated as follows;
The variable overhead spending variance is the difference between the actual and budgeted rates of expenditure of the variable overhead.
Actual hours worked x (actual overhead rate - standard overhead rate)
= Variable overhead spending variance
D) Variable overhead efficiency variance is calculated as follows;
The variable overhead efficiency variance is the difference between the actual and budgeted hours worked. The standard variable rate per hour is used for this and must be calculated.
Standard overhead rate x (Actual hours - Standard hours)