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iren2701 [21]
3 years ago
6

Kitware Corp. produces and sells kitchen wares. Last year, it produced 7,000 can openers and sold each one for $6. To produce th

e 7,000 can openers, the company incurred fixed costs of $17,000 and a total cost of $45,000. Kitware's average variable cost to produce the 7,000 can openers was
Business
1 answer:
lana [24]3 years ago
7 0

Answer:

Average variable cost = $4 per can opener

Explanation:

The total cost is a function of the total fixed cost plus the total variable cost. If the total cost to produce 7000 can openers was $45000 and the total fixed cost was $17000, we can calculate the total variable cost to be,

Total variable cost = Total Cost - Total Fixed Cost

Total Variable cost = 45000  -  17000

Total Variable cost = $28000

The average variable cost per unit can be calculated by dividing the total variable cost incurred divided by the total number of units produced.

Average variable cost = 28000 / 7000

Average variable cost = $4 per can opener

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At its peak at the end of 1999, Microsoft had a market cap of $600B. PC sales were booming and most PCs ran on Microsoft softwar
Slav-nsk [51]

Answer: C. The decline in the P/E ratio more than offset earnings growth and this pushed the market cap down.

Explanation:

Market Cap = P/E ratio * Earnings

Market cap is dependent on both the P/E ratio and Earnings as shown by the formula and as shown on the graph, the P/E ratio kept on decreasing which means that for the Market Cap to decrease, the downward pull of the P/E ratio must have overshadowed the growth in earnings such that the Market Cap went down instead of up.

For instance, if the earnings were $40 billion and the P/E ratio was 15, Market Cap would be $600 billion.

If earnings increased to $45 billion but P/E ratio decreased to 10, Market Cap would become $450 billion.

6 0
3 years ago
EMC Corporation has never paid a dividend. Its current free cash flow of $490,000 is expected to grow at a constant rate of 4.4%
disa [49]

Answer:

$5,697,674

Explanation:

Dividend Valuation method is used to value the operations of a company based on the dividend paid, its growth rate and rate of return/WACC. The price is calculated by calculating present value of future dividend payment.

Free cash flow is the residual cash flow of operation after paying the capital expenditure from net income of the company. It represent the cash from the operations.

Formula to calculate the value of operation

Value of Operations = FCF / ( WACC - growth rate )

Value of Operations = $490,000 / ( 13% - 4.4% )

Value of Operations = $5,697,674

7 0
3 years ago
Narrow, specifically designated expenditures that are included in more comprehensive legislation are known as: A.earmarks.B. log
Dmitry [639]

Narrow, specifically designated expenditures that are included in more comprehensive legislation are known as earmarks

Explanation:

A reserve is an arrangement in a discretionary spending bill which directs funds to a particular beneficiary while bypassing the distribution process of merit-based or competitive funds. American and South African public finances feature Earmarks.

The allocation process gave Congress the power to allocate discretionary funds for specific programs. The allocation process was a routine part of the federal government allocation process.

For several years, they have been a central aspect of regulatory and distributive reform, an important political mechanism by which national coalitions have been built up by consensus with the intention of implementing or opposing crucial legislation. The ban' contributes to the legislative gridlock and increases the difficulty of achieving tax and immigration reforms,' as congressional appropriations disadvantaged and were ultimately prohibited.

3 0
3 years ago
What is a significant part of the step of evaluating controls and determining which controls to implement?
Kisachek [45]

Answer:

"CBAs" would be the appropriate answer.

Explanation:

  • The CBAs system was intended to incorporate various business practices and knowledge across multiple security experts as well as provide a structured process to match application development policies and procedures with either the institution's threat analysis.  
  • As either a consequence, a structure is developed to enhance their safety infrastructure of business process development.
6 0
2 years ago
Walk Like You Footwear Corporation's flexible budget cost formula for supplies, a variable cost, is $2.67 per unit of output. Th
yarga [219]

Answer:

Actual cost per unit  = $2.13

Explanation:

The spending variance for equipment and supplies can be calculated as below:

Spending variance = Actual spending - Standard Spending, or:

- 9,604 = Actual spending - Standard cost per unit x Budgeted quantity

- 9,604 = Actual spending - 2.67 x 19,200

Solve the equation we get Actual spending = 41,660.

The actual cost per unit for supplies is calculated as below:

Actual cost per unit = Actual spending/Actual production unit

                                  = 41,660/19,600 = 2.13

6 0
3 years ago
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