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3 years ago

State 2 factors that might influence which source of finance to choose

1 answer:

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Cost: ...
Financial strength and stability of operations: ...
Form of organization and legal status: ...
Purpose and time period: ...
Risk profile: ...
Control: ...
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Flexibility and ease:

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Standlar Company makes and sells wireless speakers. The price of the standard model is $360 and its variable expenses are $210.

Vladimir79 [104]

Total contribution margin = $3,000, standard models sold at break even=800, deluxe models sold at break even=400, superior models sold at break even=100

<u>Explanation:</u>

1.Using sales mix stated in the fact from Figure to form a package what is the total contribution margin?

total contribution margin =($150 multiply 8) plus ($200 multiply 4) plus ($1,000 multiply 1) = $3,000

2.Refer to Figure, What is the number of standard models sold at break even.

break even units =Fixed cost divide contribution margin per package

= $300,000 divide $3000 =100 package standard models sold at break even=100 package multiply 8 = 800

2.Refer to Figure, What is the number of deluxe models sold at break even.

break even units

=Fixed cost divide contribution margin per package = $300,000 divide $3000

=100 package deluxe models sold at break even = 100 package multiply 4

6 0

3 years ago

Suppose the Imperial Galactic Bank has received $1,000 of deposits and all banks face a required reserve ratio of 10 percent. Wh

Bumek [7]

Answer:

Money Multiplier= 1/ reserve ratio = 1/10% = 10

Change in Money Supply = Change in Reserves * Money Multiplier

= 1,000 * 10 = 10,000

So, option d is the correct option.

4 0

4 years ago

Lorenzo Company uses a job order costing system that charges overhead to jobs on the basis of direct materials cost. At year-end

damaskus [11]

Answer:

a. Overhead Rate = 0.34

b. Direct Labour Cost = $53,820

Explanation:

Overhead Rate based on direct materials is calculated as overhead cost/direct material cost

Overhead Cost = $612,000

Direct Materials Cost = $1,800,000

Overhead Rate = $612,000/$1,800,000

Overhead Rate = 0.34

Given

Total cost of job in process = $90,000

Material Cost of job in process = $27,000

Overhead Applied = $9,180 (0.34% * $27,000)

Direct Labour Cost = Cost of job in process - Material Cost - Overhead Applied

Direct Labour Cost = $90,000 - $27,000 - $9,180

Direct Labour Cost = $53,820

8 0

3 years ago

Parkette, Inc., acquired a 60 percent interest in Skybox Company several years ago. During 2017, Skybox sold inventory costing $

serious [3.7K]

Answer:

Please see attachment

Explanation:

Please see attachment

6 0

3 years ago

Assume that you have graduated and have gotten a good job. You are conscientious and want to begin a savings account. You are pa

ozzi

Answer:

The balance of the account on July 1, 2037 will be $677,846.38.

Explanation:

Since the withdrawals are made the beginning of each month, the relevant formula to use is the formula for calculating the Future Value (FV) of an Annuity Due is employed as follows:

FV = M * (((1 + r)^n - 1) / r) * (1 + r) ................................. (1)

Where,

FV = Future value or the balance of the account on July 1, 2037 =?

M = Monthly withdrawal = $300

r = Monthly interest rate = nominal interest rate / 12 = 10% / 12 = 0.10 / 12 = 0.00833333333333333

n = Number of months from August 1, 2007 to July 1, 2037 = 359

Substituting the values into equation (1), we have:

FV = $300 * (((1 + 0.00833333333333333)^359 - 1) / 0.00833333333333333) * (1 + 0.00833333333333333)

FV = $300 * 2,240.81447087212 * 1.00833333333333333

FV = $677,846.38

Therefore, the balance of the account on July 1, 2037 will be $677,846.38.

8 0

3 years ago

State 2 factors that might influence which source of finance to choose​

State 2 factors that might influence which source of finance to choose