Answer:
The range consistent with both sets would be $34.00 to $37.40. This includes the smallest value that is within both the P/E and EV/EBITDA ranges ($34) and the highest value within both ranges ($37.40)
Answer: The options are given below:
A. $18.00
B. $1,036.80
C. $2.00
D. $7.20
E. $64.00
The correct option is D. $7.20
Explanation:
From the question above, we were given:
Annual demand = 100,000 units
Production = 4 hour cycle
d = 400 per day (250 days per year)
p = 4000 units per day
H = $40 per unit per year
Q = 200
We will be using the EPQ or Q formula to calculate the cost setup, thus:
Q = √(2Ds/H) . √(p/(p-d)
200=√(2x400x250s/40 . √(4000/(4000-400)
200=√5,000s . √1.11
By squaring both sides, we have:
40,000=5,550s
s=40,000/5,550
s=7.20
Answer:
Explanation:
The journal entries are shown below:
On July 1
Prepaid insurance A/c Dr $9,400
To Cash A/c $9,400
(Being the prepaid insurance for cash is recorded)
On December 31
Insurance expense A/c Dr $2,350
To Prepaid insurance A/c $2,350
(Being the insurance expense is recorded)
The computation is shown below:
= Prepaid insurance amount ÷ number of years × number of months ÷ total number of months in a year
= $9,400 ÷ 2 years × 6 months ÷ 12 months
= $2,350
I think it’s a and b are correct
Answer:
<h2>The Average cost usually decreases as the output expands.Hence,the answer in this case would be option c. or will always decrease as output expands.</h2>
Explanation:
- Fixed costs or expenses of production refers to those that are fixed or constant through out the production process or does not depend on the changes or adjustments in the actual output or production level.
- Some of the common examples of fixed cost of production include building rent,utility bills,land rent,insurance and interest payments.Note that these costs and expenses are fixed and unchanged and any firm or company has to pay them regardless of the production or output level.
- Now,since the average fixed cost of production is calculated by dividing the total fixed cost of production by the quantity of output produced by the firm at any particular period of time,the average fixed cost of production will decrease.As the output expands the denominator of the average fixed cost formula will increase but note that the numerator of the formula or the total fixed cost of production will always remain constant.Therefore,the average cost of production keeps decreasing with an increase in output or production level,signifying economies of scale.
