Answer:
The computation is shown below:
Explanation:
a. The company overhead rate based on direct labor is
= Total Overheads ÷ Direct Labor Hours
= $1,048,000 ÷ 40,000
= $26.2 per hour
b) Overheads Rate using Activity Based Costing is
= Cost ÷ Activity level
For Order Processing, it is
= $226,800 ÷ 14,000 orders
= $16.2 per order
For setups, it is
= $157850 ÷ 4,100 setup
= $38.5 per setup
For Milling, it is
= $395,850 ÷ 20,300 machine hours
= $19.5 per machine hour
For Shipping
= $267,500 ÷ 25,000
= $10.7 per shipment
We simply applied the above formula so that the per unit could come
A larger reduction in wacc equals impact from equity and debt. The NPV method assumes that cash flows will be reinvested at the WACC, while the IRR method assumes reinvestment at the IRR
WACC SG&A Sales CAGR EPS To make projections while capital budgeting in Excel, you have to make assumptions Although conservative assumptions are safe, they are generally so safe you would not want to make the investment.
It is best for organizations to keep their debt-to-equity ratio at a manageable level, which is generally indicated by a ratio that is below Sustaining a very low ratio would show companies that they may not be taking advantage of the cash they have for investment opportunities the project will break even.
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Answer with Explanation:
Requirement 1.
The US import will increase by $1,500,000 due to purchase of indian tea product and this import of tea would result in increase of capital outflow as the Net export particular to importation is negative hence capital outflow is genuine effect.
Requirement 2.
The Net exports can be calculated as under:
Net Exports = Exports - Imports = 0 - $1,500,000 = - $1,500,000
The US Net Exports would decrease by $1,500,000.
Tariffs can be helpful if the imports are unfairly cheaper than the domestic counterparts. This would level the playing field and help the domestic companies compete more effectively.
Tariffs can be harmful for consumers because there is strong possibility that the increased costs will raise consumer prices.
Duration of the project. from start to end
