Because casual is an objective term and what constitutes "casual" attire may drastically differ by company
Answer:
$302,500
Explanation:
The computation of total amount of product costs is shown below:-
Product cost for 11,000 units = Direct material + Direct labor + Manufacturing overhead cost incurred
= ($7.30 + $3.90 + $2.20 + $14.10) × 11,000
= $27.50 × 11,000
= $302,500
Therefore for computing the total amount of product costs we simply applied the above formula.
Opportunity based decision making
Answer:
11.33%
Explanation:
The dividend valuation model will be used here to calculate the cost of equity raised which can be calculated using the following formula:
r = D1 / (Po - F) + g
Here D1, Po, F and g are given in the question so by putting the values in the equation, we have
r = $1.75 / ($42.5 - 5% of Po) + 7%
r = 11.33%
Ex-post (in an accounting sense), Savings ALWAYS equals Investment. However, ex-ante, DESIRED savings may very well be different from DESIRED investment. It is the REAL INTEREST RATE which adjusts to make desired savings equal to desired investment.
Explanation:
- In the basic, closed economy model, Savings=Investment. The reason for this is because, in this model, growing capital stock is not the only item taken into account in Investment. The other item is inventory accumulation.
- Savings is whatever is left over after income is spent on consumption of goods and services, investment is what is spent on goods and services that are not 'consumed', but are durable.
- Equilibrium in the goods market can be expressed in two equivalent ways: (1) desired national saving is equal to desired investment; AS = AD.
- The real interest rate is the rate of interest an investor, saver or lender receives (or expects to receive) after allowing for inflation. It can be described more formally by the Fisher equation, which states that the real interest rate is approximately the nominal interest rate minus the inflation rate.
