Answer:A. LN, JQ, RQ
Explanation:
To know the current profitability, we need to determine the contribution margin unit by the minutes on the constraints .
a) For LN
Contribution by unit = Selling price per unit- Variable cost per unit
$ 161.88 -$116.12 = $45.76
Contribution by the minutes = Contribution by unit / Minutes on the constraint
= $45.76/ 2.60 = 17.60
B) For JQ
Contribution by unit = Selling price per unit- Variable cost per unit
$ 350.41 -$279.11 = $71.3
Contribution by the minutes = Contribution by unit / Minutes on the constraint
= $71.3/ 4.60 = 15.50
c) For RQ
Contribution by unit = Selling price per unit- Variable cost per unit
$ 446.71 -$338.71 = $108
Contribution by the minutes = Contribution by unit / Minutes on the constraint
= $108/ 7.50 = 14.40
In order of their current profitability from most profitable to least profitable, We have LN with 17.60, next JQ with 15.50 and the least RQ with 14.40
Answer:
$64,474.20
Explanation:
As for the information provided,
discount rate = 7.25%
First payment will be made at the end of year 1
Discounting factor = 
Thus, current value of payment = 
= $26,107.20
Discounting factor for receipts =
Year 1 = = $28,000 
0.9324 = 26,107.20
Year 2 = 
Year 3 = 
Therefore, value of contract today = - $26,107.20 + $26,107.20 + $30,429.0 + $34,045.20 = $64,474.20
Answer:
zero
Explanation:
The activity in this scenario is fund raising/ issue note to a bank which is booked in financing activities, not in operating activities.
Thus we can said "there's no operating activity in Madison Company cash flow of 2016" if there's no other information.
It is called the law of demand and supply whereby when the supply of commodity increases, the need reduces. The market becomes flooded with the items while the number of customers is constant. Moreover, when the supply of a good diminishes its demand goes up.
Answer:
TRUE
Explanation:
The coupon rate for a bond is fixed and is paid by the issuer of the bond to the bondholder. The cash outlay/inflow to the issuer/bondholder is always the same reardless of the market rate.
The effect of the market rate is on the cost to acquire the bond in the secondary market. It do not change the coupon obligation.
