Answer and Explanation:
a. The computation of the earning per share is given below:
As we know that
Earning per share = (Net income - preference dividend) ÷ (average no of common shares oustanding)
For 20Y5
= ($1,508,000 - $60,000) ÷ 80,000 shares
= $18.1
For 20Y6
= ($2,676,000 - $60,000) ÷ 120,000 shares
= $21.8
b. Since the earning per share is increased from 20Y5 to 20Y6 so it is favorable
Answer:
$23,000
Explanation:
current annual sales = 49,000 packs
Selling price of course packs = $14 each
variable cost per pack = $12
Earnings = $75,000
Contribution:
= current annual sales × (Selling price of course packs - variable cost per pack)
= 49,000 packs × ($14 - $12)
= 49,000 packs × $2
= $98,000
Fixed costs of producing the course packs:
= Contribution - Earnings
= $98,000 - $75,000
= $23,000
Answer:
18 %
Explanation:
Annual rate of return on this investment = annual profit / average investment x 100
where,
annual profit = $108000
average investment = (initial cost + salvage value) ÷ 2
= ($900000 + $300000) ÷ 2
= $600,000
therefore,
annual rate of return on this investment = $108000 / $600,000 x 100
= 18 %
Answer:
The answer would be $29,063
Explanation:
Hope this helps :D
Answer:
A. (1), (3), (5)
Explanation:
When deciding on whether the items presented in the Job Offer are relevant or irrelevant, Sarah would need to evaluate and compare between the both Offers.
<u>Base Salary</u>
The base salary offered in both the Job Offers are same. Therefore, this item is irrelevant. Since they both are same it won't matter whichever she selects.
<u>Overtime Compensation</u>
This is different in both the Job Offers. Comp. Time is basically where employers give their employees paid time off in lieu of the overtime they have worked. While in the case of hourly rate, the employees receive additional payment for overtime work. Sarah would have to choose which option is more preferred for her whether extra time or additional payment. This item is therefore relevant.
<u>Moving Allowance</u>
This allowance is equal in each job offers. So, she would receive it in any offer she selects. This item is also irrelevant when making decision on the Job Offer.
<u>Signing Bonus</u>
The signing bonus has been offered in only one of the Job Offers for $2,000. Sarah would need to decide if she would need this bonus or could she forgo the same. This item is relevant.
<u>Job Search Cost</u>
This is basically sunk cost which is not recovered. Therefore, it is irrelevant when making the decision for the Job Offer.
Hence, the base salary, moving allowance and job search cost are irrelevant for Sarah when making decision for the Job offer.
