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MakcuM [25]
3 years ago
12

Arley’s Bakery makes fat-free cookies that cost $1.20 each. Arley expects 25% of the cookies to fall apart and be discarded. Arl

ey wants a 50% markup on cost and produces 180 cookies. What should Arley price each cookie? (Round your answer to the nearest cent.)
Business
1 answer:
mihalych1998 [28]3 years ago
5 0

$2.4 should be the price

<u>Explanation:</u>

Cost of one cookie $1.2

Production (numbers) = 180

Cost of 200 ($1.20 multiply with  180) = 216

Markup required ($216 multiply with 50%) = 108

Total Price required (216 plus 108) = 324

Actual production (180 \times(100-25 \%)) = 135

Price per cookie(324 divided by 135) = $2.4

<u> Note : </u>For finding out the cost of 200 production numbers, it is to be multiplied with the cost of one cookie. Markup is required by 50% and total price is calculated by adding the cost of 200 production cookies with markup cost.

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Free cash flow (FCF) and net income (NI) differ in the following ways:
alexandr402 [8]

Answer:

c.  I, II, and III only

Explanation:

As we know that

Free cash flow = Earnings before Interest and Taxes ×  (1-Tax Rate) + Amortization and Depreciation expense - Change in Net Working Capital -Capital Expenditure

And, the Net income is determined after considering all cash and non cash expenses.

Therefore, I, II and III statements are considered

Hence, the option c is correct

6 0
2 years ago
Stock in Daenerys Industries has a beta of 1.2. The market risk premium is 6 percent, and T-bills are currently yielding 4.9 per
kobusy [5.1K]

Answer:

The best estimate of the company’s cost of equity is 12%

Explanation:

Estimate of the company’s cost of equity = (Required Return as per Capital Asset Pricing Model + Cost of Equity) / 2

Required Return as per Capital Asset Pricing Model = Risk Free rate + Market Risk Premium * Beta

= 4.9 % + ( 6% * 1.2)

= 0.049 + 0.06 * 1.2

= 0.049 + 0.072

= 0.1210

= 12.10%

Cost of Equity = (Expected Dividend/Price) + Growth Rate

= [( $ 1.30 * 1.08) / $ 36] + 8%

= 0.039 + 0.08

= 0.1190

= 11.90%

The best estimate of the company’s cost of equity = (12.10 % + 11.90 % )/ 2

=  24% / 2

= 12%

Hence, the best estimate of the company’s cost of equity is 12%

6 0
3 years ago
Gore Global is considering the two mutually exclusive projects below. The cash flows from the projects are summarized below.
d1i1m1o1n [39]

Answer:

D

Explanation:

Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested

IRR can be calculated with a financial calculator  

Flying Car

Cash flow in year 0 = -$200,000

Cash flow in year 1 = 50,000

Cash flow in year 2 = 50,000

Cash flow in year 3 =80,000

Cash flow in year 4 =100,000

IRR = 13%

To find the IRR using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button and then press the compute button.  

7 0
3 years ago
Ellen purchased a dishwasher, which cost $315 before the 9. 22% sales tax. She used the machine an average of 10 times per week
antiseptic1488 [7]

Cost is the amount of spending on a product or service. The lifetime cost of the dishwasher was $1029.8 which is $1030 approximately.

<h3>What is the cost?</h3>

Cost is the amount incurred on acquiring a product or using a service. Cost is the value of the product or service.

The lifetime value of an asset is the total expense incurred on the asset from acquisition till disposal.

The lifetime cost of the dishwasher will be the sum of its cost, sales tax, and water and electricity charges for 6 years.

The water and electricity charges are $0.09 and $0.13 per use. The total number of times the dishwasher is used can be calculated as:

The number of use per week are 10, number of weeks in a year are 52, and number of years of use are 6.

\rm Number\:of\:uses = 10\:times\times 52\:weeks\:\times6\:years\\\\\rm Number\:of\:uses = 3120\:times

Therefore, the water and electricity charges will be:

\rm Water\:charges = 3,120 \times \$0.09\\\\\rm Water\:charges = \$280.08\\\\\rm Electricity \:charges = 3,120\times \$0.13\\\\\rm Electricity \:charges = \$405.60

The cost of the dishwasher will be a combination of its purchase price and sales tax. Therefore:

\rm Cost\:of\:dishwasher = \$315 + 9.22\%\\\\\rm Cost\:of\:dishwasher = \$344.043

The lifetime cost of the dishwasher will be:

\rm Lifetime\:cost\:of\:dishwasher = \$344.043 + \$280.08 +\$405.60\\\\\rm Lifetime\:cost\:of\:dishwasher = \$1029.7\\\\\rm Lifetime\:cost\:of\:dishwasher = \$1030 (approximately)

Therefore the correct option is A.

Learn more about cost here:

brainly.com/question/4557688

8 0
2 years ago
Santiago Incorporated has a constructing company in which he does major constructing jobs and also leases his heavy-duty equipme
Dafna11 [192]

Answer:

"Direct Method" is the right answer.

Explanation:

  • The direct approach provides a clearer overview of how a company receives currency. And therefore it is regarded as equivalent to the alternative manner.
  • Compared to the price of something like the money market account throughout the particular circumstance, the above direct method of registering cash balance somewhat from operations would be advised.
4 0
3 years ago
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