Answer: 8.79%
Explanation:
The premium or discount as a percent of NAV will be calculated thus:
NAV will be calculated as:
= (Market value of portfolio - liabilities ) / shares outstanding
= ($310 million - $3million) ÷ 10 million
= $30.7 per share.
Then, the calculation for the discount percent will be:
= (selling price - NAV) / NAV
= ($28 - $30.7) / $30.7
= ($-2.7) / $30.7
= (0.0879)
= 8.79%
Therefore, NAV is trading at discount of 8.79%
Answer:
Option B, $45,000, is the right answer.
Explanation:
Given actual sales = $450000
Actual units that is sold = 30000 units
Actual selling price = $15 per unit
Planned sales = $540000
Planned units = 45000
Planned selling price = $12 per units.
The difference between actual and planned sales due to unit price factor = change in units × change in price
= (45000 – 30000) × (15 – 12)
= $45000
Thus option B is correct.
Answer:
1.30
Explanation:
The cost of production is usually split into direct and indirect cost or overheads. the overheads is usually stated as a function of the direct cost( labour, machine hours, materials etc.)
The predetermined overhead rate
= $1,170,000/$900,000
= 1.3
This means that the company will incur an overhead cost of $1.30 for every $1 spent on direct materials.
Answer:
c) merchant wholesaler
Explanation:
A merchant wholesaler is a business unit that buys merchandise in bulk from manufacturers and resells to retailers in smaller quantities. The wholesale business has profit motives. It forms a link between manufacturers and retailers.
Unlike agents and brokers, merchant wholesalers take ownership of the goods they buy. Carolyne should avoid becoming a merchant wholesaler. As a wholesaler, she will own all the merchandise she purchases. She can choose to be either an agent or broker as these do not take title to the merchandise.
