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2 years ago

The Southern Bell Company manufactures 2,000 telephones per year. The full manufacturing costs per telephone are as follows:

Business

1 answer:

Degger [83]2 years ago

5 0

Answer:

The company should buy the units because it will save $10,000.-

Explanation:

Giving the following information:

Make in-house:

Unitary variable cost= 2 + 8 + 6= $16

Avoidable fixed cost= $8,000

Buy:

Unitary cost= $15

<u>First, we will determine the total cost of each option:</u>

Make in house= 2,000*16 + 8,000= $40,000

Buy= 15*2,000= $30,000

The company should buy the units because it will save $10,000.-

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You are given the following information on Parrothead Enterprises: Debt: 9,200 6.4 percent coupon bonds outstanding, with 23 yea

valina [46]

Answer:

8.57%

Explanation:

value of debt = $1,000 x 9,200 x 1.045 = $9,614,000

YTM = {32 + [($1,000 - $1,045)/46]} / [($1,000 + $1,045)/2] = 31.02/ 1,022.50 = 3.034% x 2 = 6.07%

value of common stock = 235,000 x $64.70 = $15,204,500

Re = 3.7% + 0.92(11.8% - 3.7%) = 11.15%

value of preferred stocks = 8,200 x $94.20 = $772,440

cost of preferred stocks = 4.6 / 94.2 = 5.46%

total value = $25,590,940

common stocks = 0.594

debt = 0.376

preferred stocks = 0.03

WACC = (0.594 x 11.15%) + (0.03 x 5.46%) + (0.376 x 6.07% x 0.78) = 6.6231% + 0.1638% + 1.78% = 8.57%

7 0

3 years ago

A manufacturing company that has only one product has established the following standards for its variable manufacturing overhea

Butoxors [25]

Answer:

b. $1,144 unfavourable.

Explanation:

The computation of the variable overhead efficiency variance is shown below:

= (Actual Hours - Standard Hours) × Standard rate per hour

=(1,700 - 8.1 × 200 units) × $14.30

= 80 × $14.30

= $1,144 unfavorable

hence, the variable overhead efficiency variance is $1,144 unfavorable

Therefore the option b is correct

6 0

3 years ago

An economy is experiencing a recessionary gap. The government can ______.

Jobisdone [24]

Answer:

Increase expenditure or cut taxes to increase aggregate demand.

Explanation:

A recessionary gap is a macroeconomic term which portrays an economy working at a level underneath its full-employment equilibrium. Under a recessionary gap condition, the degree of real gross domestic product (GDP) is lower than the degree of full employment, which puts descending pressure on prices over the long haul.

6 0

3 years ago

Career fulfillment means

ANTONII [103]

Answer:

enjoying your work and being well compensated

Explanation:

6 0

3 years ago

Jill just made a purchase online. The store that she bought from gave her the option to pay with a check, money order, or credit

Readme [11.4K]

Answer:

The credit card is the most effective method of payment.

Explanation:

The store will not ship the item until the payment is accredited to their account. Because of this, Jill needs to pick the payment method that have the fastest clear time.

The Check: usually takes about two business days for a deposited check to clear.

Money Order: It depends on the bank. Some banks allow for money orders to be cleared and deposited almost immediately, and some require at least one business day for it to clear.

Credit Card: almost all the time payments can take place immediately.

The obvious choice is Credit Card payment for the instant clear of the funds in the store account.

6 0

3 years ago