Answer:
b. $75.
Explanation:
The computation of the time charge per hour is shown below;
But before that the total charge is
Labour Charge = $800,000
Overhead Cost = $480,000
Target Profit = $220,000
Total Charge = $1,500,000
Now
time charge per year is
= $1,500,000 ÷ 20,000 direct labor hours
= $75 per year
Hence, the company's time charge per hour is $75 per year
Therefore the correct option is b.
Answer:
500,000 units
Explanation:
BEP = fixed asset / CMR
CMR = contribution / sales
contribution = 100 - (15 +35)
= $50
CMR = $50 / $100
= 0.5
BEP = $250000/ 0.5
= 500,000 units
Answer:
C) The expected rate of return must be equal to the required rate of return; that is, r~ = r.
Explanation:
In order for markets to be in equilibrium, each stock's expected rate of return should equal the investors' required rate of return.
If the investors' required rate of return is higher than the stock's expected rate of return, then the price will be pressured downwards. If the investors' required rate of return i slower than the stock's rate of return, then the price will be pressured upwards.