Answer:
The production of the clocks should be continued, as buy option will increase the cost for the company by 48,000
Explanation:
Current escenario
100 DM x 1,200 = 120,000
140 DL x 1,200 = 168,000
80 VO x 1,200 = 96,000
Fixed Cost 150 x 1,200 = 180,000
Total cost = 564,000
420 x 1,200 = 504,000
60% fixed cost unavoudable 180,00 = 108,000
Total Cost 612,000
make 564,000
buy (612,000)
total cost saving (48,000)
Answer:
The correct option is the statement that reads " If a firm commits to making its environment a good place to work,workers will not leave"
Explanation:
The most qualified employees are always been poached because of the value they add to any organization,hence the first statement is absolute truth.
The second statement is wrong because there the best working environment cannot stop people from resigning,what in case someone needs to study masters abroad?
A certain level of turnover is healthy since it paves from for new hands with fresh perspective to be hired.
However, when turnovers becomes excessive,it implies a fundamental problem with the workplace.
Answer:
The minimum amount of time required is:
26.82 years.
Explanation:
Present value = $2,600
Future value = $7,800 ($2,600 * 3)
Annual interest rate = 4.1%
Monthly interest rate = 4.1%/12 = 0.342%
$2,600 will need to be invested for 321.781 (26.82 years) periods to reach the future value of $7,800.00.
FV (Future Value) $7,800.00
PV (Present Value) $2,600.00
N (Number of Periods) 321.781
I/Y (Interest Rate) 0.342%
PMT (Periodic Payment) $0.00
Starting Investment $2,600.00
Total Principal $2,600.00
Total Interest $5,200.00
Answer:
I agree
Explanation:
The demand for butter is increasing as price increases. This means the higher the price, the higher the quantity demanded. This is against the law of demand.
I hope my answer helps you
Answer:
a) diluted earnings per share = 0
Explanation:
Diluted earnings per share (DEPS) is a recalculation of the basic EPS. The difference between DEPS and EPS is, EPS represents the current position of earnings per share. No changes in number shares and/or earnings in the future are incorporated in the basic EPS.
Whereas DEPS is a representation of not only the current position of earnings and shares but also includes the commitments an entity has already made whose occurrence may result in an increase/decrease in the amount of earnings and/or number of shares. For example, in the question Culver Company has issued 10-year convertible bonds which right now have no impact on basic EPS but if in the future these bond holders exercise their right of conversion, this would result in an increase in number of ordinary shares hence decreasing/diluting the basic EPS. The entities use DEPS to show shareholders the impact of such commitments on the basic EPS to improve their decision making.
So in 2017 none of the bonds were converted therefore no diluted earnings per share is calculated in 2017.
If all of the bonds were converted in 2017 the DEPS would have been calculated as follows:
The formula for calculating DEPS is as follows;
DEPS = (Net income + interest savings) ÷ number of ordinary shares + increase in ordinary shares as a result of conversion.
Tax savings as a result of conversion=$128400 ($2140000×6%). Because if bond holders convert into ordinary shares then Culver company will not have to pay them interest and hence the amount of interest is saved.
Increase in ordinary shares upon conversion= 29960 ($2140000÷$1000=2140 bonds. Each bond is convertible into 14 shares therefore, 2140×14=29960).
Now Lets calculate DEPS as follows;
DEPS = ($296000+$128400) ÷ 91000+29960
DEPS =$424400÷120960
DEPS = $3.5