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3 years ago

Waterproof Roofing Company has provided the following information:

Business

1 answer:

Katyanochek1 [597]3 years ago

4 0

Answer:

(D) Operating income will increase by $27,300.

Explanation:

The sales increase will also generate an increase in the variable cost

The fixed cost, remaing unchanged against the volume of production. they do not increase or decrease at the factory level.

So the operating income will increase by the diffrence between sales and variable cost

sales increase will be:

779,000 x 10% = 77,900

variable cost increase:

506,000 x 10% = 50,600

increase in operating income 77,900 - 50,600 = 27,300

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Kountry Kitchen has a cost of equity of 10.6 percent, a pretax cost of debt of 5.2 percent, and the tax rate is 39 percent. If t

kap26 [50]

Answer: .27

Explanation:

The Debt to Equity Ratio is the amount of Debt per dollar that the company owes per dollar of Equity. It must add up to 1.

The Weighted Average Cost of Capital measures just how much a company needs to pay to it's capital holders including shareholders and debt holders.

The formula is,

WACC = (Cost of equity * Weight of equity) + (Cost of debt * Weight of debt)

Remember that Debt is tax deductible so the After tax cost of debt should be,

= 5.2% ( 1 - tax rate)

= 5.2% * ( 1 - 39%)

= 3.172%.

The debt weight is the amount of debt that the company has per dollar so that means that it is also the Debt to Equity ratio. Denote it as 'x' to find it. Remember that they must add up to one.

WACC = (Cost of equity * Weight of equity) + (Cost of debt * Weight of debt)

8.59% = 10.6% ( 1 - x) + 3.172%( x)

8.59% = 10.6% - 10.6%x + 3.172%x

8.59% = 10.6% - 7.428%x

7.428%x = 10.6% - 8.59%

7.428%x = 2.01%

x = 0.271

= 27%

Debt to Equity is 0.27.

7 0

3 years ago

Select all that apply The weighted average unit contribution margin ______. Multiple select question. is calculated by adding up

8090 [49]

Answer:

hey bro how old are u

Explanation:

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5 0

3 years ago

What is the total manufacturing overhead for the current product order if the firm uses a plantwide rate based on direct labor-h

Vesnalui [34]

Answer:

$44,268

Explanation:

Calculation for What is the total manufacturing overhead for the current product order if the firm uses a plantwide rate based on direct labor-hours

First step is to calculate the Plant-wide Overhead Rate using this formula

Plant-wide Overhead Rate = Total Overhead / Total Direct Labor Hours

Let plug in the formula

Plant-wide Overhead Rate = $632,400 / 4,800 hours

Plant-wide Overhead Rate = $131.75

Now let calculate the total manufacturing overhead for the current product order

Using this formula

Current product order Total Manufacturing Overhead = Plant-wide Overhead Rate * Direct Labor Hours

Let plug in the formula

Current product order Total Manufacturing overhead= $131.75 *336 hours

Current product order Total Manufacturing overhead= $44,268

Therefore the total manufacturing overhead for the current product order if the firm uses a plantwide rate based on direct labor-hours will be $44,268

6 0

3 years ago

You are a manager who has run into some conflict between two of your departments. Both departments are overworked and complainin

navik [9.2K]

Answer:

Collaboration.

Explanation:

Collaboration is the process by which two or more people or group's come together to achieve a particular goal. It usually needs leadership to guide it's activities, and is similar to cooperation.

The departments are complaining and saying the other one has it easy. Bother departments are functioning independently.of one another and so cannot understand the unique challenges faced by the other team.

When they collaborate they pool their resources together to achieve more. They also get to understand the pain points of the other department and this helps foster a good work environment.

4 0

4 years ago

Jasper Company has 70% of its sales on credit and 30% for cash. All credit sales are collected in full in the first month follow

hjlf

Jasper Company Cash Receipts Budget shows the estimated cash receipts from customers and other sources.

<h3>Cash Receipts Budget for April, May, and June:</h3>

April May June Total

Cash Sales 30% $157,500 $160,500 $168,000 $486,000

Credit Sales 70% 400,000 367,500 374,500 1,142,000

Total $557,500 $528,000 $542,500 $1,628,000

Calculations:

a) Cash Sales for April = 30% of April Sales = 30% * $525,000 = $157,500. The difference of 70% is received in May.

b) Sales received on account for April = 100% of Accounts Receivable = $400,000.

c) Cash Sales for May = 30% of April Sales = 30% * $535,000 = $160,500. The difference of 70% is received in June.

d) Cash Sales for June = 30% of April Sales = 30% * $560,000 = $168,000. The difference of 70% is received in July.

To learn more about cash receipts visit the link

brainly.com/question/15561219

#SPJ4

3 0

2 years ago

Waterproof Roofing Company has provided the following​ information:

Waterproof Roofing Company has provided the following information: