Answer: A. The internal rate of return is expressed as a percent rather than the absolute dollar value of present value.
Explanation:
The internal rate of return is used in calculating the rate of return for the investment of a company. During the calculation, external factors like cost of capital, inflation, risk free rate are all excluded.
The internal rate of return method is not subject to the limitations of the net present value method when comparing projects with different amounts invested because it's expressed as a percent rather than the absolute dollar value of present value..
Answer:
Production June= 288,000 units
Explanation:
Giving the following information:
Desired ending inventory= 30% of next month's sale.
Beginning inventory= 85,500 units
Sales:
June= 285,000 units
July= 295,000 units
To calculate the production required for June, we need to use the following formula:
Production= sales + desired ending inventory - beginning inventory
Production= 285,000 + (295,000*0.3) - 85,500
Production= 288,000 units
Real estate commission fee
Answer:
D. $162
Explanation:
We know,
Using high-low method, variable cost per unit = (Highest maintenance expense - Lowest maintenance expense) / (Highest machine hours - Lowest machine hours)
Given,
Highest maintenance expense = $4,360
Lowest maintenance expense = $2,950
Highest machine hours = 2,500 hours
Lowest machine hours = 1,660 hours
Therefore,
Variable cost per unit = $(4360 - 2950)/(2500 - 1660)
Variable cost per unit = 1410/840 = 1.68
Total Fixed cost using lowest machine hours =
Total cost - (variable cost per unit x least machine hours)
= 2,950 - (1.68*1,660)
= $162