Answer: not affecting the manager's bonus
Explanation:
Under Variable costing, fixed manufacturing overhead is not charged on inventories produced or not sold for the year which means that regardless of inventory level, the relevant inventory here when it comes to calculating operating profit is the one that was sold.
The manager's bonus will therefore not change as a result of higher inventory levels. Were this absorption costing where fixed overhead was charged to inventory that was not sold, the manager's bonus would increase because the higher inventory level would absorb more of the cost.
Answer:
$454,000
Explanation:
Ending inventory is the value of the inventory in the store at the end of the year.
Goods are purchased and added to the the beginning inventory, the sale for the period is deducted from it. the residual value is the value of ending Inventory.
In This question it is assumed that there is $26,000 of beginning inventory of the goods. $470,000 of the purchases were made and at the end of the year there was $42,000 balance of inventory.
We can calculate the deduction value as follow
Ending Inventory = Beginning Inventory + Purchases - deduction
$42000 = $26,000 + $470,000 - deduction
$42000 = $496,000 - deduction
Deduction = $496,000 - $42,000 = $454,000
Answer:
When the bond is sale at premium, it means the market rate is lower than coupon rate. So investor purchase the bond a higher price until the bond yield equal the market rate
If sold at discount, the market rate is higher than coupon rate. This means it's sold below face value to increase the bond yield to market rate.
YTM if market price is 887 = 10.7366190%
YTM if market price is 1,134.2= 7.1764596%
Explanation:
For the YTM we can calculate an estimated using the following formula:
Where:
C= coupon payment 1,000 x 9% = 90
F= face value of the bonds = 1000
P= market price = 887
n= years to maturity = 10
YTM = 10.7366190%
C= 90
F= 1000
P= 1134.2
n= 10
YTM = 7.1764596%
A more precise answer can be achieve using excle or a financial calculator.
<span>These are monopoly market structures. This is where the person or company selling items does not face competition and is the only person or company selling the items with no competitor that has a close substitute. This is an imperfect kind of competition.</span>
Answer:
Cyclical unemployment is the loss of jobs due to a recession or downturn in an economy.
Explanation:
Cyclical unemployment is a type of unemployment. It is also known as Keynesian or deficient-demand unemployment. This type of unemployment occurs when the overall demand in an economy is not enough to provide jobs to the people who want to work. Cyclical unemployment is observed during the periods of slow economic growth or recession.
