Answer:
The aggregate demand curve is downward sloping because when the general level of price rise; the real wealth of consumers will decline (with a certain amount of money you end up buying less goods), the interest rates will increase (as inflation increases, interest rates also increase), and the price of exported goods increases (as the general price of goods increase, the production of goods will also become more expensive).
Answer:
$60,000
Explanation:
Given that,
Direct materials = $42,900
Direct labor = $29,500
Manufacturing overhead = $30,500
Selling expenses = $21,700
Administrative expenses = $35,800
Conversion costs:
= Direct labor + Manufacturing overhead
= $29,500 + $30,500
= $60,000
Therefore, the conversion costs for September is $60,000.
The cost of equity is 10.6%.
<h3>What is the explanation?</h3>
The calculation of the question is shown as follows:
Cost of equity = Risk - free rate + (beta*market risk premium)
Cost of equity = 3.25% + (1.4* 5.25%)
Which is equal to 3.25% + (7.35%)
hence cost of equity is 10.6%.
<h3>
What are retained earnings?</h3>
Retained earnings refer to the total amount of earnings that a company generates from its operations. This subtracts the dividends shared among stockholders. The retained earnings are then reinvested in business.
To know more about retained earnings, visit:
brainly.com/question/13980094
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The complete question is:
Scanlon Inc.'s CFO hired you as a consultant to help her estimate the cost of capital. You have been provided with the following data: r_RF = 3.25%; R_PM = 5.25%; and b = 1.40.
Based on the CAPM approach, what is the cost of equity from retained earnings?
To keep prices low than you’re going to need to use cheaper materials. Also you’re going to need to have less staff. If you’re spending more money than you’re making than you’ll go out of business. Invest in advertising as well.
Answer and Explanation:
The computation is shown below:
1.
<u>Particulars Units Unit Cost Dollars
</u>
Beg. Inv. 84 $3 $252
Apr-02 75 $4 $300
Apr-14 66 $7 $462
Apr-23 52 $8 $416
Total 277 $1,430
Average cost of one hat is
= Total cost of purchases ÷ Units purchased
= $1,430 ÷ 277 units
= $5.16
2.
Ending Inventory in Units = Units purchased - Units sold
= 277 units - 142 units
= 135 units
Now
Value of Ending Inventory = Units in Ending Inventory × Average cost per unit
= 135 units × $5.16
= $696.60
= $697
3
Gross Margin = Units sold × (Selling Price - Cost of goods sold)
= 142 units × ($24 - $5.16)
= $2,675.28
= $2,675
