Answer: Option A
Explanation: In simple words, WACC refers to the cost of total capital that a company has borrowed form the market in its weighted average form. It includes all sources of debt whether retained earning, equity, debt or preferred stock.
While calculating WACC the analyst takes the market value of the capital sources into consideration, thus, in case of preferred stock the cost of newly issued preferred shares must be taken as they depict the actual cost that the company has to bear.
From my knowledge, Lenders are the people who make them.
Answer: $2500
Explanation:
From the question,
Average variable cost(AVC) = $50
Average total cost (ATC) = $75
Output (Q) = 100
Since Average fixed cost is the difference between the average total cost and the average Variable cost. This will be:
AFC = ATC - AVC
AFC = $75 - $50
AFC = $25
We should note that:
AFC = TFC / Q
TFC = AFC × Q
TFC = $25 × 100
TFC = $2500
Therefore, total fixed cost is $2500
Answer:
The correct journal entries should be:
Department A:
Dr Work in progress inventory 93,000
Cr Raw materials inventory 93,000
Department D:
Dr Work in progress inventory 67,000
Cr Raw materials inventory 67,000
Explanation:
Raw materials is an asset account with a debit balance, and since we must decrease it, we have to credit the amounts. Work in progress (WIP) inventory is an asset account so it has a debit balance.
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❖ The correct answer choice is B. the City Hotel.
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