Answer:
absorption income higher by $60000
Explanation:
given data
inventory on hand = 2,000 units
Variable costs = $100 per unit
fixed manufacturing costs = $30 per unit
to find out
higher net income of what amount
solution
we know that Absorption cost and variable cost are different in their treatment of the fixed manufacturing costing
so we use of absorption cost that carry over in fix cost into ending inventory is here
absorption cost that carry over = fixed manufacturing costs × inventory on hand
absorption cost that carry over = $30 × 2000
absorption cost that carry over = $60000
so that here this amount is use for variable costing and absorption income higher by $60000
Answer:
$0.69 million or $690,000
Explanation:
Value of Firm Vₐ = $24.7 million
Debt D = $5.5 million
Shares S = 390,000 * 51 = $19.89 million
Therefore Value Vₓ = 5.5 + 19.89 = $25.39 million
We would expect Vₐ and Vₓ to be the same value. Therefore the decrease in the value of the company due to expected bankruptcy costs is
= $25.39 million - $24.7 million
= $0.69 million
Answer:
I believe it us c but I'm stuck between c and D
after some searching the answer is c
