Answer:
VC% = 73.5%
The New variable cost percentage of sales = 73.5%
Explanation:
Given;
New Fixed cost = $5.3 million
Total cost = $20 million
Total variable cost = $20 - $5.3 = $14.7 million
Variable cost percent=(total variable cost/total cost)×100%
VC% = (14.7/20) × 100%
VC% = 73.5%
Answer:
A. 5.56%
B. 13.55%
Explanation:
In this question, we are asked to calculate the equity cost using the DCF method and the SML method
A. DCF approach
cost of equity =[ D0(1+growth )/ current price] +growth
= [.40 (1+.05) / 70 ] + .05
= [ .42 / 75] + .05
= .0056 +.05
= 0.0556 same as 5.56%
B)SML approach
Cost of equity = Rf +Beta (Rm-Rf)
= 5.8+ 1.25 (12 -5.8 )
= 5.8+ 1.25 *6.2
= 5.8 + 7.75
= 13.55%
Answer:
manufacturer --> explicit cost
wages and utilities --> explicit cost
implicit cost --> rent of the showroom
implicit cost --> accountant salary
Explanation:
Implicit cost:
A cost already occurred but not necessarily shown or reported as a separate expense. It represents the opportunity cost of internal resources used without explicit compensation. The loss of potential income. but not of profits.
Resuming Implicit cost comes from the use of an asset, rather than renting or buying it.
Explicit cost:
Is a cost that occurs, identificable and accounted. It occurs during business operations and has a clearly defined dollar amount.
Explicit and implicit costs are utilized in the calculation of economic profit. They are used to determinate profitable of a business
Answer:
True
Explanation:
The company received $15000 and credited it to the unearned consulting Revenue accounts because it had not performed any services yet.
According to the accrual principle, the company can only report the amount earned in a period. If the company achieves the required 10% of consulting services by 31st march, it will record 10 percent of $15,000 as its income.
10 percent of $15000= 10/100 x $15000
=$1500
Answer:
b. the marginal benefit of the sixth banana exceeds its price.
Explanation:
Consumer consumes a commodity only until: that commodity consumption yields him/ her more or at least equal satisfaction than the - dissatisfaction from loosing money (price) spent at that commodity.
Marginal Benefit is in terms of Marginal Utility i.e Additional Satisfaction that consumer gains from consuming an additional unit of a commodity.
So, Christine will purchase 6th Banana only if additional satisfaction from that additional banana's consumption > dissatisfaction owing to price cost paid for it.
If Marginal Value < Price, its satisfactory loss making for her & she will rather reduce banana consumption. Average & Total Values are not apt tools to analyse the case.
