Answer: See Explanation
Explanation:
First, we have to calculate the worth of factory A which will be:
= Cash flow / Cost of capital
= $19300 / 3.5%
= $19300 / 0.035
= $551428.57
= $551429
Cost of capital of Factory B = Cash flow / Worth
= $19,900 / $545,000
= 0.0365
= 3.65%
Cost of capital of Factory A = 3.5%
Cost of capital of Factory B = 3.65%
Worth of factory A = $551429
Worth of Factory B = $545,000
Therefore, factory A is more valuable than Factory B and Factory B is more risky than Factory A.
Answer:
Production for 2nd Quarter = 15,000 units
Explanation:
given data
ending inventory of finished goods = 25 %
finished goods inventory at year start = 4,000 units
so we consider here Quarter sales in unit
1 = 12,000
2 = 14,000
3 = 18,000
4 = 16,000
solution
we get here Production for 2nd Quarter that is
Production for 2nd Quarter = Quarter 2 sale + Desired Q2 ending inventory - Beginning Q2 inventory ...................1
so it will be as
Production for 2nd Quarter = Quarter 2 sale + (25% of Q3 Sale) - (25% of Q2 sale)
put here value
Production for 2nd Quarter = 14000 + (18000 × 25%) - (14000 × 25%)
Production for 2nd Quarter = 14000 + 4500 - 3500
Production for 2nd Quarter = 15,000 units
The correct answer would be revenue budget approach. In this approach, a manager is asked to maximize the profit they get from the services and goods that are produced. Revenue budget is a forecast of the sales of a company. Managers would use certain model to maximize the amount of such.
B is the answer <span>B- the rate remains the same , even if income increases or decreases
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