Answer:
2,000 test
Revenues 2,000*$320=$640,000
Variable costs 2000*$205 ($160+$21+$6+$8+$10)=$410,000
Fixed costs=$37,000 ($22,000+$15,000)
Income =$193,000
1,250 test
Revenues 1,250*$320=$400,000
Variable costs 1,250*$205 ($160+$21+$6+$8+$10)=$256,250
Fixed costs=$37,000 ($22,000+$15,000)
Income =$106,750
Explanation:
Answer:
Total direct materials cost variance is $66,000 and it is favorable.
Explanation:
Actual cost = Actual Quantity × Actual Price
= 300,000 × $1.78
= $534,000
Actual cost with selling price = Actual Quantity × Selling Price
= 300,000 × $2.00
= $600,000
The total direct materials cost variance is computed as:
Total direct materials cost variance = Actual cost with selling price - Actual Cost
= $600,000 - $534,000
= $66,000
It is favorable.
Working Note:
Actual Price per lbs = $534,000 / 300,000
= $1.78
Answer:
1. Year 1 expected value = $32.24
2. Required rate of return = 7.35%
Explanation:
1. For computing the stock price which is expected 1 year from now is shown below:
= Current Price × (1+rate)^number of years
= $31 × (1+0.04)^1
= $31 × 1.04
= $32.24
Hence, the expected 1 year value of stock price is $32.24
2. The required rate of return is computed by using an formula which is shown below:
= (Current Year dividend ÷ Current stock price)+ growth rate
where,
current year dividend is = D1
And, D1 = DO × (1+g)
where,
DO = previous dividend share
g = growth rate
So, $1 × (1+0.04)
= $1 × 1.04
= $1.04
Now apply these values to the above formula
So, required rate of return is equals to
= ($1.04 ÷ $31) + 0.04
= 7.35%
Hence, the required rate of return is 7.35%
Answer:
Answer:
$215
Explanation:
Eagles product has an EBIT of $400
Its tax rate is 30%
= 30/100
= 0.3
The depreciation is $16
The capital expenditures are $56
The planned increase in net working capital is $25
Therefore, the free cash flow to the firm can be calculated as follows
Free cash flow= EBIT(1-tax)+depreciation-capital expenditures- change in working capital
= 400(1-0.3)+16-56-25
= 400-120+16-56-25
= $215
Hence the free cash flow to the firm is $215
For the answer to the question above, I think the answer is that
<u><em>petra's lien on the machine will terminate if and only </em></u><span><u><em>if Petra would voluntarily surrender possession.</em></u></span>
I hope my answer helped you. Have a nice day!
