Answer: C. $250
Explanation: fixed cost are cost which do not change even when other factors Change. Example of fixed cost is ‘rent’ even if the employees increase up to a 100 this variable won't affect the cost of rent which is $250. Unlike salary that increases with an increase in workers.
Labour cost per day of hiring two workers = $80 x 2 = $160
Total cost per day when three
workers are hires. This includes both the fixed cost and labour cost
Total Cost = fixed cost + labor cost
= $250 + $80 x 3
= $490.
<span>Because interest income is usually the largest component of a bank's income, specifically for a commercial bank. (Investment banks earn more from fees and trading.)</span>
Answer: See explanation
Explanation:
a. The company's total book value of debt will be:
= Value of debt + Value of zero coupon bonds
= $70 million + $100 million
= $170 million
b. The market value will be:
= Quoted price × Par value
= ($70 × 1.08) + ($100 × 0.61)
= $75.6 + $61
= $136.6 million
c. The aftertax cost of debt will be:
= (1 - Tax rate) × Pre tax cost of debt
= (1 - 35%) × 5.7%
= 65% × 5.7%
= 3.7%
Answer:
The budgeted cost of merchandise purchases is $527,000
Explanation:
The cost of merchandise purchases for May can be computed by first of all calculating the costs of goods sold,then by deducting closing inventory from costs of good sold and adding opening inventory,just like working backwards.
Sales $870,000
less margin($870,000*40%) ($348,000)
Cost of goods sold $522,000
Cost of goods sold =opening stock+purchases-closing stock
purchases=costs of goods sold+closing stock-opening stock
closing stock is $52000
opening stock is $47000
purchases =$522000+$52000-$47000
purchases= $527,000
