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ruslelena [56]
2 years ago
6

Lakeside Inc. produces a product that currently sells for $64.80 per unit. Current production costs per unit include direct mate

rials, $26; direct labor, $28; variable overhead, $13.00; and fixed overhead, $13.00. Product engineering has determined that certain production changes could refine the product quality and functionality. These new production changes would increase material and labor costs by 20% per unit.
Required:
a. What would be the incremental profit or loss if Lakeside could sell the refined version of its product for $72 per unit? (Round your final answer to 2 decimal places. Loss amounts should be indicated with a minus sign.) Incremental Profit (Loss)
b. Should it be processed further?
Yes
No
Business
1 answer:
iren [92.7K]2 years ago
5 0

Answer:

a. Incremental costs = (Direct materials + Direct labor) * 20%

Incremental costs = ($26 + $28) * 20%

Incremental costs = $54 * 20%

Incremental costs = $10.8

Incremental selling price = $72 - $64.8 = $7.2

Incremental profit (loss) = Incremental selling price - Incremental costs = $7.2 - $10.8 = $(3.6)

b. No. As there is Incremental loss, it should not be processed further

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You own a portfolio that is 30 percent invested in Stock X, 20 percent in Stock Y, and 50 percent in Stock Z. The expected retur
Charra [1.4K]

Answer:

11.2%

Explanation:

We need to calculate the weighted return of the portfolio. You have to multiply each stock's weight by the expected return.

  • Stock X = 0.30 x 9% (expected return) = 2.7%
  • Stock Y = 0.20 x 15% (expected return) = 3%
  • Stock Z = 0.50 x 11% (expected return) = 5.5%
  • weighted return of the portfolio = 2.7% + 3% + 5.5% = 11.2%

6 0
3 years ago
When companies offer new equity security issues, they publicize the offerings in the financial press and on Internet sites.
I am Lyosha [343]

Solution:

Common stock: These are the common shares that a company issues to creditors to raise funds. In return, creditors are entitled to a dividend share of the profits received by the firm.

Par value: It refers to the worth of a share suggested by the charter of the company. Often referred to as a portfolio face value.

Record the sale of common stock in the books of ANIT Corporation.  

Date     Account Titles and Explanation    Debit (S)     Credit (S)

                        Cash (1)                             101,595,000

                 Common Stock (2)                                          7500

   Paid-in Capital in Excess of Par value (3)               101,587,500

(To record safe of .5 million shores of $0.001 par value per share in excess of Par)  

Compute the amount of cash received from common stock issue.  

Cash received = Number of shares issued x Price per share

                        = 7.500,000 shares x $13.546

                        =$101,595,000  

Compute common stock value.  

Common H= 'Number of shares v Par value of common stock stock value  

                  = 7,500,000 shares x SO 001 per share

                  = $7,500  

Compute paid-in capital in excess of par value.  

Paid-in capital in = I (Cash received—excess of par value Common stock value

                           =$101,595.000(1) — S7,5001.2)

                           = $101,587,500  

3 0
3 years ago
Imagine that you are opening a restaurant and need to choose a point-of-sale system. Go online to research different systems. Th
Oksana_A [137]

Answer:

Kayo na dapat nagsasagot nan

Explanation:

Sabe kase

Provide a link to the system that you would choose

5 0
2 years ago
A company produces fruit juice in five different flavors (Mango,Guava,Apple,Grape and Tropical). A local supermarket sells the p
djverab [1.8K]

Answer:

3 ÷ 5

Explanation:

Data provided in the question according to the question is as follows

There are five different flavors like Mango, Guava, Apple, Grape, and Tropical = 5

And, the three flavors i.e Guava, apple and the Grape = 3

So, the probability of the above three flavors is three flavors and the five flavors relation i.e shown below

= 3 ÷ 5

Hence, the answer is 3 ÷ 5

5 0
2 years ago
An investor can design a risky portfolio based on two stocks, A and B. Stock A has an expected return of 14% and a standard devi
Luba_88 [7]

Answer:

0

Explanation:

Given that :

Expected return on stock A (Ea) = 14% = 0.14

Expected return on stock B (Eb) = 10% = 0.1

Standard deviation of return (Sa) = 20% =0.2

Standard deviation of return (Sb)=5% = 0.05

Riskfree rate (rf) = 6% = 0.06

Correlation Coefficient between A and B (r) = 0.50

Wa = (.14-0.06)(.05)^2 - (.1-.06)(.20)(.50)(0.050) /

(.14-.06)(.05)^2 + (.10-.06)(.20)^2 -(.14-.06+0.1-0.06)(0.05)(0.20)(0.5)

= 0 / 0.012

= 0

Weight or proportion of optimal risky portfolio that should be invested in stock A.

8 0
3 years ago
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