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2 years ago

The Rock Company produces basketballs. It incurred the following costs during the year.

Business

1 answer:

AVprozaik [17]2 years ago

6 0

Answer:

Total cost under absorption costing= $81,400

Explanation:

<u>The absorption costing method includes all costs related to production, both fixed and variable. </u>The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.

Direct materials $14,400

Direct labor $25,600

Fixed manufacturing overhead $12,000

Variable manufacturing overhead $29,400

Total cost under absorption costing= $81,400

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On January 1, $5,000,000, 10-year, 10% bonds were issued at $5,200,000. Interest is paid annually each January 1. The straight-l

Mnenie [13.5K]

Answer:

$20,000 premium is amortized at the end of the first year.

Explanation:

Straight line amortization:

premium amortized = Premium / number of years

= ($5,200,000 - $5,000,000) / 10 years

= $200,000 premium / 10 years

= $20,000

Therefore, $20,000 premium is amortized at the end of the first year.

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What is trading account

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a trading account deals with the u.s. government

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Norris Co. has developed an improved version of its most popular product. To get this improvement to the market, will cost $48 m

Lorico [155]

Answer:

$1.0725 Million

Explanation:

So now

Net Present Value = Annuity value of the even cash inflow - Investment

Here

Investment is $48 Million

Annuity Value of $13.5 Million Cash Inflow = $13.5 Million * Annuity factor for 5 years at 11.66%

Annuity factor = (1 - (1 + r)^ -n) / r

Here

r is 11.66% (Step1) and n is 5 years

Annuity Factor = (1 - (1 + 11.66%)^-5) / 11.66%

Annuity Factor = 3.635

By putting values in the above equation, we have:

Net Present Value = $13.5 Million * 3.635 - $48 Million

NPV = $1.0725 Million

Step1: Find r which Weighted average cost of capital (WACC)

Weighted Average Cost of capital

= Value of Debt / (V of debt + V of equity) * After tax cost of debt PLUS

(Value of equity (Value of Debt / (V of debt + V of equity) * cost of equity

Here

Post tax cost of debt = Pre tax cost of debt * (1 + Tax rate)

Post tax cost of debt = 9% * (1- 30%) = 6.3%

The debt to equity ratio is 25% which means equity is 100% and debt is 25%.

Value of debt is 25%

value of equity is 100%

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This means

WACC = (25% / 125% * 6.3%) + (100% / 125% * 13%)

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3 years ago

When using horizontal differentiation, a firm divides itself into subunits based on function, type of business, or.

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When using horizontal differentiation, a firm divides itself into sub units based on function, type of business, or Geographic area

Horizontal differentiation

Is basically concerned with how the firm decides to divide itself into sub units. The decision is typically made on the basis of function, type of business, or geographical area. In many firms, just one of these criteria predominates, but more complex solutions are adopted in others. This is particularly likely in the case of international firms, where the conflicting demands to organize the company around different products (to realize location and experience curve economies) and different national markets (to remain locally responsive) must be reconciled. One solution to this dilemma is to adopt a matrix structure that divides the organization on the basis of both products and national markets.

Functional structure :

A functional structure can work well for a firm that is active in a single line of business and focuses on a single geographic area. But problems can develop once the firm expands into different businesses or geographies.

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1 year ago

Public debt includes debt that is held by:________

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The answer is Public debt includes debt that is held by the social security Administration.

Public debt is the total amount, including total liabilities, borrowed by the government to meet its development budget.

What is Public debt?

Public debt has to be paid from the consolidated fund of India. It is also used to refer overall liabilities of central and state governments, but the union government clearly distinguishes its debt liabilities from the state.
The sources of public debt are dated government securities (G-Secs), treasury bills, external assistance, and short term borrowings.
However, if the public debt is calculated as government liabilities, which also includes the liabilities of states.

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