Answer:
$11,760
Explanation:
The sales less the variable cost gives the contribution margin. The contribution margin less the fixed cost gives the net operating income/profit.
Without the new offer
Profit = 5000($29 - $15) - $20,900
= $70,000 - $20,900
= $49,100
For the new order a variable selling cost of $2 per unit would be eliminated, the contribution of the order will be
= 1680($20 - $15 + $2)
= 1680 * $7
= $11,760
This is the differential effect on profit.
Answer:
11.3%
Explanation:
O'Brien has the following data
rRF= 5%
RPM= 6%
b= 1.10%
Therefore the cost of equity can be calculated as follows.
= 5% + 6%(1.05)
= 5% + 6.3
= 11.3%
Hence the cost of equity is 11.3%
Answer:
Misstatement is referred to as errors in the presentation of financial information that could lead to wrong decision by the users
Explanation:
Occurrence : Issuing of dummy invoices for sales that did not occur
Completeness: Sales invoice were not fully recorded due to omission or misplacement
Authorization: Sales are not approved by the responsible manager. No authorized signature
Accuracy : Casting of sales figure on the register is not correct.
Cutoff : Sales are not recorded in the proper accounting period. January sales being recorded in the previous year account.
Classification : Grants being wrongly recorded as revenue
Presentation : Exaggerated revenue.
Answer:
Assets = Liabilities + Stockholders' Equity
<u>1.</u> 1,600 0 1600
<u>2.</u> -400 0 -400
<u>3.</u> 0 0 0
<u>4.</u> -100 0 -100
<u>5.</u> -400 0 -400
<u>6.</u> 1000 0 0
-1000
<u>7.</u> 7000 7000 0
<u>8.</u> 0 200 -200
<u>9.</u> 10000 0 10000
<u>10.</u> <u> -500 </u> <u> 0 </u> <u> -500 </u>
Totals 17200 7200 10000
The nominal exchange rate if the purchasing-power party holds is $1 exchanges for 40 pesos. The nominal exchange rate is defined as the number of units of the domestic currency that can be used to purchase a unit of a given foreign currency. Purchasing Power Parity, PPP, is an economic theory that uses what's called the "basket of goods approach" Basically, it creates a basket of goods that is worth the same amount of money in two or more different countries.
