Answer:
DEBIT Acc. Rec. 4,123 CREDIT Sales tax payable 323 Sales Rev. 3,800 is the correct answer.
Explanation:
<span>The company president does not believe that the formula should be altered for fear it will tarnish the company's brand. </span>She prefers that the company spend more on marketing and
increase the price. The company’s accountants believe that if marketing costs are increase
by $400,000 then the company can achieve a selling price of $42 per bottle without losing
any sales. At this price, will the company achieve its target operating income of 40% of
revenue?
Total cost
= $9,600,000
Add:
Increase in marketing costs=
400
,000
Total costs of redesigned table =
$10
,000,000
Revised cost per unit ($10,000,000 ÷ 400,000 units)
= $25
Target cost per unit ($42 × 0.60)
= $25.20
Yes, this proposal allows the company to meet its goal of target costs less than 60% of
revenue and target operating income greater than 40% of revenue.
Answer:
Spot rate = 0.3807
Explanation:
Given:
Interest rates in the U.S. = 10% = 0.1
Interest rates in Switzerland = 4% = 0.04
Forward rate = $0.3864
Spot rate = ?
Day ratio = 90 days / 360 days = 0.25 (Assume 360 days in a year)
Computation of Spot rate:
Spot rate = Forward rate[1+(Domestic rate × Day ratio)] / [1+ (Foreign rate × Day ratio)]
Spot rate = 0.3864[1+(0.04 × 0.25)] / [1+(0.10 × 0.25)]
Spot rate = 0.3864[1+0.01] / [1+0.025]
Spot rate = 0.3864[1.01] / [1.025]
Spot rate = 0.390264 / [1.025]
Spot rate = 0.3807
Answer:
833.33
Explanation:
The fixed annual dividend is $100
The required rate of return on this investment is 12%
Therefore the value for each share can be calculated as follows
= 100/(12/100)
= 100/0.12
= 833.33
Hence the value for each share is 833.33