Answer: -($0.5025) million
Explanation:
As depreciation is expected to increase this year by $0.670 million.
Therefore,
Expenses will increase and will result in decrease in income before tax by $0.670 million.
Additional tax saving on increase in depreciation = $0.67 × 25%
= $0.1675 million
Hence,
Total change in net income = -($0.67) + $0.1675
= -($0.5025) million
Answer:
Predetermined manufacturing overhead rate= $2.15 per direct labor hour
Explanation:
Giving the following information:
It takes 80,900 direct labor hours to manufacture the X-1 and 93,500 direct labor hours to manufacture the X-2 Line.
Total overhead= 225,000 + 149,960= $374,960
To calculate the predetermined manufacturing overhead rate we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 374,960 / (80,900 + 93,500)
Predetermined manufacturing overhead rate= $2.15 per direct labor hour
Answer:
23.25%; 62.01%
Explanation:
(a) Amount received:
= No. of shares × selling price
= 100 × $43
= $4,300
Sales deposit = 60% of Amount received
= 0.6 × $4,300
= $2,580
Amount paid = No. of shares × Purchase price
= 100 × $49
= $4,900
Therefore, Loss = $4,900 - $4,300
= $600
(b) If buys at $27, then
Amount paid = $27 × 100
= $2,700
Profit = $4,300 - $2,700
= $1,600
Loss on investment:
= ($600 ÷ $2,580) × 100
= 23.25%
Profit on investment:
= ($1,600 ÷ $2,580) × 100
= 62.01%
Answer:
Explanation:
The equation to calculate the <em>monthly payment</em> for fixed-rate loans is:
![Monthly\text{ }payment=Loan\times \bigg[\dfrac{r(1+r)^t}{(1+r)^t-1}\bigg]](https://tex.z-dn.net/?f=Monthly%5Ctext%7B%20%7Dpayment%3DLoan%5Ctimes%20%5Cbigg%5B%5Cdfrac%7Br%281%2Br%29%5Et%7D%7B%281%2Br%29%5Et-1%7D%5Cbigg%5D)
Where:
- Loan = $8500 - $300 = 8,200
- r is the monthly interest = 5.75% / 12 = 0.0575/12 ≈ 0.00479
- t is the number of moths = 36
Substituting:
![Monthly\text{ }payment=\$8,200\times \bigg[\dfrac{(0.0575/12)(1+(0.0575/12))^{36}}{(1+(0.0575/12))^{36}-1}\bigg]=\$ 248.53](https://tex.z-dn.net/?f=Monthly%5Ctext%7B%20%7Dpayment%3D%5C%248%2C200%5Ctimes%20%5Cbigg%5B%5Cdfrac%7B%280.0575%2F12%29%281%2B%280.0575%2F12%29%29%5E%7B36%7D%7D%7B%281%2B%280.0575%2F12%29%29%5E%7B36%7D-1%7D%5Cbigg%5D%3D%5C%24%20248.53)
