Answer:
d) $3: $6
Explanation:
The computation is shown below:
Before the one firm cheats, the firm revenue is
= $10 × $6
= $60
Before the one firm cheats, the firm revenue is
= $9 × $7
= $63
No cheating firm's revenue
= $9 × $6
= $54
Now in case of cheating, it is
= $63 - $60
= $3
And, in the case of non cheating, it is
= $60 - $54
= $6
Answer:
$56,667
Explanation:
Diluted EPS is a measure used to assess the quality of a company's earnings per share (EPS). Diluted EPS takes into calculation all convertible securities such as convertible bonds or convertible preferred stock, which are changed into equity or common stock.
The stock options have a value of (10,000 × $10)/$12 = $8,333 on conversion.
To calculate the Diluted Earnings per share,
40,000 + (20,000 × 9/12) + (10,000 - 8,333) = $56,667.
The appropriate response is Horizontal Integration. It is the procedure of an organization expanded generation of products or administrations at a similar piece of the inventory network. An organization may do this through inside development, obtaining or merger. The procedure can prompt an imposing business model if an organization catches most by far of the market for that item or administration.
Answer:
$54,639
Explanation:
the approximate amount of principal reduction when the second lease payment is made in Year 2 can be calculated by making the Lease amortization table as follows
DATA
Annual payments = 68,830
Implicit rate = 8%
Annuty factor for 4 years at 8% = 3.55710
Present value of lease payment =$246,212 (68830*3.57710
)
Year 1 Year 2
Opening balance - $177,382(w)
interest - $14,191(w)
payments $68,830 $68,830
principal payments $68,830 $54,639
closing balance $177,382(w) $122,743
Working
Closing balance = Present value of lease payment - Annual payment
Closing balance = $256,212 - $68,830
Closing balance = $177,382
Interest = closing balance x implicit rate
Interest = $177,382 x 8%
Interest = $14,190.56
Answer:
4,513 approx.
Explanation:
The computation of the minimum number of jars of silver polish is shown below:-
Sales revenue for one jar of silver polish $5.60
Sales revenue for 1/4 pound of Grit 337 0.85
($3.40 × 1 ÷ 4)
Incremental revenue from
further processing $4.75
($5.60 - 0.85)
Incremental costs of further processing:
Processing costs $2.40
Selling costs $0.40 $2.80
Incremental contribution
margin from further
processing into silver polish
per jar $1.95
($4.75 - $2.80)
Point of indifference denotes the point where all options are equally profitable. But after that we will see that more processing is profitable. This is due to the fixed costs involved in further production.
Thus Minimum number of jars needed to produce to justify the further processing = Avoidable Fixed cost ÷ Incremental contribution
= $8,800 ÷ $1.95
= 4,513 approx.
