Answer:
a. Annual Interest tax shield = Debt * Interest * Tax Rate
Annual Interest tax shield = $35 million *9% *30%
Annual Interest tax shield = $0.945 million
b. PV of tax shield = $35 million *9% *30% / 9%
PV of tax shield = $10.50 million
c. PV of tax shield at 7% = 35million *7% *30% / 7%
PV of tax shield at 7% = $10.50 million
Answer:
$0.15 hours per unit
Explanation:
Given that
Direct material cost = $16
Assume Direct labor cost = X
Manufacturing overheads = $18
Profit margin = 20%
Direct labor per hour cost = $28
The computation of direct labor-hour input is shown below:-
Total manufacturing cost = X + $34
Total cost of goods sold = (X + $34) × 1.7 = $66
Direct labor cost per unit
= (X + $34) = $38.82
= $38.82 - $34
= $4.32
Direct labor hours per unit = Direct labor cost per unit ÷ Direct labor per hour cost
= $4.32 ÷ $28
= $0.15 hours per unit
Answer:
c) Credit to Cash for $242
Explanation:
Petty cash, beginning = $300
Delivery expense = $53
Merchandise inventory = $167
Miscellaneous expense = $22
Petty cash, Ending = $58
The journal to record the reimbursement of the accounts will be:
Event Account Title and Explanation Debit Credit
1 Delivery expense $53
Merchandise inventory $167
Miscellaneous expense $22
Cash $242
Answer:
A) we often do not have sufficient resources to achieve our objectives
Explanation:
Scarcity is an economic problem that comes with scarce resources and unlimited wants. In this situation people have to decide on how to allocate resources better so as to satisfy their need, which involves opportunity cost.
Scarcity occurs when resources needs to satisfy ends are limited in supply. It is a foundational problem in economics.
