Answer:
reduces; geographic diversification
Explanation:
In the above problem, the proposed new branch will economics reduces overall risk exposure and produce a geographic diversification effect.
Answer:
Fixed-charge coverage ratio
Explanation:
The fixed-charge coverage ratio can be regarded as a rato that gives the measurements of the ability of a firm have to cover all her fixed charges. These fixed charges could be expense as well as debt payments and interest. It displays the wellness that earnings of a company has to cover its fixed expenses. This ratio is considered by bank before they lend money to a business. It should be noted that Fixed-charge coverage ratio measures the number of dollars of operating cash available to meet each dollar of interest and other fixed charges that the firm owes.
Answer:
Buyer (Paden Company)
Explanation:
The freight costs will be paid by the Buyer. FOB shipping point means that the Buyer takes all the risks and rewards associated with the purchase as soon as the goods leave sellers location.
Answer:
a. $149.00
b. $217.00
Explanation:
Variable Costing
Product Cost under Variable Costing = Variable Manufacturing Costs Only
Total Variable Manufacturing Cost = $610,900
Unit Cost = Total Cost / Units Manufactured
= $610,900 / 4,100 units
= $149.00
Variable Costing
Product Cost under Absorption Costing = Variable Manufacturing Costs + Fixed Manufacturing Costs.
<u>Total Absorption Cost Calculation</u>
Total Variable Manufacturing Cost $610,900
Fixed manufacturing costs $278,800
Total Absorption Cost $889,700
Unit Cost = Total Cost / Units Manufactured
= $889,700 / 4,100 units
= $217.00
