Answer:
65%
Explanation:
Calculation to determine its predetermined overhead rate for the next period should be:
Using this formula
OH rate = Estimated overhead next period/direct labor
Let plug in the formula
OH rate = $65,000/$100,000
OH rate = 65%
Therefore If CWN bases applied overhead on direct labor cost, its predetermined overhead rate for the next period should be: 65%
Answer:
The answer is 30%
Explanation:
Solution
Given that:
Project A
Project A costs = $350
Cash flows =$250 and $250 (next 2 years)
Project B
Project B costs =$300
Cash flow = $300 and $100
Now what is the crossover rate for these projects.
Thus
Year Project A Project B A-B B-A
0 -350 -300 -50 50
1 250 300 -50 50
2 250 100 150 -150
IRR 27% 26% 30% 30%
So,
CF = CF1/(1+r)^1 + CF2/(1+r)^2
$-50 = $-50/(1+r)^1 + $150/(1+r)^2
r = 30%
CF = CF1/(1+r)^1 + CF2/(1+r)^2
$50 = $50/(1+r)^1 + $-150/(1+r)^2
r = 30%
Hence, the cross over rate for these project is 30%
Note:
IRR =Internal rate of return
CF =Cash flow
r = rate
Answer:
A price increase of 1% will reduce quantity demanded by 4%
Explanation:
If the price elasticity is 4 then, this demand is highly responsive to changes in price.
So it will decrease by more than the price increase.
we must remember that the price-elasticity is determinate like:
↓QD / ΔP = price-elasticity
if the cofficient is 4 then a 1% increase in price:
↓QD / 0.01 = 4
↓QD = 0.04
Quantity demanded will decrease by 4%
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Answer:
$329,840
Explanation:
Calculation to determine the net note payable to Grant
Net note payable to Grant=$70,000 × 4.712
Net note payable to Grant= $329,840
OR
Net note payable to Grant= ($70,000 × 5.712) – $70,000
Net note payable to Grant= $329,840
Therefore On AGH's December 31, 2017 balance sheet, the net note payable to Grant is:$329,840
