D. For savers in low income tax brackets than for savers in high income tax brackets.
Answer:
The correct answer is B.
Explanation:
Giving the following information:
Units produced 600 units
Direct materials $40 per unit
Direct labor $13 per unit
Variable manufacturing overhead $6 per unit
Variable selling and administrative costs $4 per unit
The variable costing method calculates the cost of goods based on direct material, direct labor, and variable manufacturing overhead.
First, we need to calculate the unitary cost of production:
unitary cost= 40 + 13 + 6= $59
Inventory= 600 units - 450 units= 150 units
Inventory cost= 150*59= $8,850
Answer:
d. If the WACC is 9%, Project B's NPV will be higher than Project A's.
Explanation:
The internal rate of return is the return in which the NPV is zero i.e cash inflows equal to the initial investment
While the WACC refers to the cost of capital by considering the capital structure i.e cost of equity, cost of preferred stock and cost of debt by taking their weightage
Now if the WACC is 9% so project B NPV would be higher as compared to project A as we can see that project B IRR is greater than the project A IRR
Therefore option d is correct
Answer:
$143
Explanation:
The computation of the demand forecast is shown below:
= Weightage × demand observed + Weightage × demand observed + Weightage × demand observed
= 0.1 × 120 + 0.4 × 140 + 0.5 × 150
= $12 + $56 + $75
= $143
Basically we multiplied the weighatge with its demand observed so that the demand forecast could come