Answer:
$14,500 unfavorable variance
Explanation:
the direct labor cost variance is calculated with the following formula:
direct labor variance = total actual labor hours x (actual labor cost per hour - standard cost per hour)
direct labor variance = 1,000 hours x ($48.15 - $34) = $14,500 unfavorable variance
The variance is unfavorable because the actual labor cost is much higher than the estimated labor cost.
Answer:
The correct answer is letter "B": The rate of return decreases.
Explanation:
Net Present Value or NPV is a mathematical calculation used to determine if a project could be profitable or not. NPV is obtained by subtracting the present value of outflows from the present value of inflows, In case NPV is positive, it is expected a project will provide the firm profits, while a negative NPV implies the company incurring in losses.
<em>The Rate of Return (RoR) has an inverse relation with the NPV meaning if the RoR decreases the NPV will increase and vice versa.</em>
Answer:
Debt to income ratio is all your debt payments divided by all the money you earn during a month. Generally you are considered to be in good financial shape when your debt to income ratio is less than 20%, if it's less than 10% it is even better.
Kim's gross income = $1,230 - $165 (taxes) = $1,065
Kim's total debt payments without new debt = $134 (credit card payments)
Kim's total debt payments including new debt = $134 + $172 (new debt) = $306
Kim's debt to income ration without new debt = $134 / $1,065 = 12.58%
Kim's debt to income ration with new debt = $306 / $1,065 = 28.73%
Currently Kim's debt to income ratio is only 12.58% which is very good, but if she takes the new loan then her ratio will increase to 28.73% which is extremely high and not prudent.
Answer:
Option A.
Explanation:
Given information:
GDP = $11 trillion
Consumption = $7 trillion
Taxes = $2.5 trillion
Surplus = $1 trillion
The formula for private saving is
The formula for national saving is
The private saving and national saving are $1.5 trillion and $2.5 trillion, respectively.
Therefore, the correct option is A.
Answer: The correct answer is "personal taxes lower the value of using corporate debt".
Explanation: A major contribution of the Miller model is that it demonstrates, other things held constant, that: <u>personal taxes lower the value of using corporate debt.</u>
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