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uranmaximum [27]
3 years ago
8

Sheffield Corp. is unsure of whether to sell its product assembled or unassembled. The unit cost of the unassembled product is $

24 and Sheffield would sell it for $52. The cost to assemble the product is estimated at $15 per unit and the company believes the market would support a price of $64 on the assembled unit. What decision should Sheffield make
Business
1 answer:
matrenka [14]3 years ago
3 0

Answer:

Sell before assembly, the company will be better off by $3 per unit

Explanation:

the aim of a firm is to maximise profit. The decision the firm would make would be based on the decision that yields the higher profit

Profit = revenue - cost

Profit that would be earned from selling the unassembled unit = $52 - $24 = $28

Profit that would be earned from selling the assembled unit = $64 - ($15 + $24) = 25

The profit from selling the unassembled product is greater than the profit from selling the assembled product by $3. The firm would prefer to sell the unassembled unit

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2 years ago
A warewashing machine and/or the compartments of sinks/basins must be cleaned:
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On a day to day bases, as well with non harmful cleanser
5 0
4 years ago
Common stock, par $12 per share, 49,000 shares outstanding. Preferred stock, 8 percent, par $17.5 per share, 7,710 shares outsta
Vlad [161]

Answer:

<h2>a. The Preferred stock is noncumulative.</h2>

Preferred stock

= 7,710 * 17.5 * 8%

= $‭10,794‬

Per share

= 10,794/7,710

= $1.40

Common Shareholders.

= 63,800 - 10,794

= $‭53,006‬

Per share

= ‭53,006‬/49,000

= $1.08

<h2>b. Preferred stock is cumulative. </h2>

This means that if preferred dividends are not paid in a year, they will be accrued and paid when they can.

Preferred stock

= 7,710 * 3 years (2017,2018,2019)

= $‭23,130‬

Per share = 23,130/7,710

= $3

Common stock

= 63,800 - 23,130

= $‭40,670‬

Per share

= 40,670/49,000

= $0.83

c. Why were the dividends per share of common stock less for the cumulative preferred stock than the noncumulative preferred stock?

b. The dividends in arrears on the preferred stock had to be fulfilled before dividends could be paid for the current year.

7 0
4 years ago
Why is the leaf washed with distilled water​
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3 0
3 years ago
Cold Goose Metal Works Inc. is considering a one-year project that requires an initial investment of $500,000; however, in raisi
andrezito [222]

Answer:

The rate of return expected on this project by Cold Goose Metal Works Inc. is 15.20%

Explanation:

Since flotation cost is 4% that implies that $500,000 is actually 96% (100%-4%) of the cash proceeds from the capital funding,hence funds raised is computed thus:

funds raised=$500,000/0.96=$520,833.33  

Annual return on investment=cash inflow-initial cash outflow

cash inflow is $600,000

cash outflow  is $520,833.33  

annual return on investment=$600,000-$520,833.33=$79166.67

rate of return on project=annual return on investment/initial investment

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The rate of return that Cold Goose Metal Works Inc is 15.20%

6 0
4 years ago
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