Answer:
$2.20
Explanation:
Given that,
Direct materials = $10
Direct labor = $24
Overhead = $16
Outside supplier has offered to sell the product to Axle = $45
If Wheeler buys from the supplier, it will still incur 45% of its overhead cost.
Buying cost:
= Offered price + (45% of overhead cost)
= $45 + ($16 × 0.45)
= $45 + $7.2
= $52.2
Net incremental cost:
= Buying cost - Production cost
= $52.2 - (Direct materials + Direct labor + Overhead)
= $52.2 - ($10 + $24 + $16)
= $52.2 - $50
= $2.20
Price of share is $12.2. Future dividend is therefore expected to grown by 4.5%. To find the rate of return i.e. K, we will do the following steps:
= 0.36(1.045)/12 = 0.03135+4.5 = 4.53135
Therefore, rate of return is 4.53%.
I believe it's <span>b. grow its manufacturing sector.
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He’s not even lost or missing he probably ghosted you please stop sharing this and move on
