Answer:
Will increase to $460,000
Explanation:
Palmer Inc. currently produces 110,000 units at the rate of $440,000
Next year they are expected to produce 115,000 units
Since the cost is variable, the total cost can be calculated as
(440,000/110,000) × 115,000
= 4×115,000
= $460,000
Hence the total cost is $460,000
Answer:
C.) Accounts receivable 7,840 Cash discounts 160 Sales 8,000
Explanation:
Assuming for now that credit customer will avail the cash discount, the following journal entry shall be made on November 10 by Flores mills in respect of credit sales made by it.
Debit Credit
Accounts receivable $7,840
Cash discount $160
(8000*2%)
Sales $8,000
Based on the above discussion, the answer shall C.) Accounts receivable 7,840 Cash discounts 160 Sales 8,000
Answer:
8.038%
Explanation:
For the computation of the firm's WACC first we need to find out the cost of equity which is shown below:-
Cost of equity = Expected dividend ÷ (Price of the stock × (1 - Flotation cost)) + Growth rate
= $0.65 ÷ ($15.00 × (1 - 10%)) + 6.00%
= 10.81%
Now
WACC = Weight debt × (Cost of debt) × (1 - Tax rate) + Weight of equity × Cost of equity
= 45% × 7.75% × (1 - 40%) + 55% × 10.81%
= 8.038%
Answer: E. The firm's ability to differentiate its product
Explanation:
The factor under the control of owners and managers that make a firm successful and allow it to earn economic profits is the firm's ability to differentiate its product.
Product Differentiation has to do with making a product unique from that of its rivals so that it'll be attractive to the customers and the target market. This will slow be vital for the company to produce at a average cost that is lower than that of its competing firms. This will help the company to have a competitive edge over others.