Answer:
a. 6.72 minutes
Explanation:
There is total weekly demand for 1000 boxes. The production is assumed to be same as the weekly demand. The factory workers have two shifts for 5 days. The total hours which factory workers work every week is :
5 days * 7.5 hours * 2 shifts = 75 hours per week
1000 / 75 hours = 13.33
13.33 / 2 = 6.72 minutes
The company incurs net operating loss of -$15,000 having reported gross margin initially.
<h3>What is net operating income?</h3>
Net operating income is the sum total of a company's profit after subtracting its regular, recurring costs and expenses.
Net Operating income or loss is computed as :
= Total Revenue - Cost of Goods Sold - Operating Expenses
= $100,000 - $70,000 - $45,000
= -$15,000
Therefore, the net operating loss for the company is -$15,000
Learn more about net operating income here : brainly.com/question/25895372
Answer: Option (b) is correct.
Explanation:
Given that,
Direct materials = $24
Direct labor = $10
Variable overhead = $8
Fixed factory (allocated) = $18
Overtime premium = $8 per unit
Purchased = 2,000 units at a special price of $48 per unit
Contribution Margin (2000 - 1000 units) = special price per unit - Direct materials - Direct labor - Variable overhead
= 48 - 24 - 10 - 8
= $6 per unit
Contribution margin for units produced during overtime = special price per unit - Direct materials - Direct labor - Variable overhead - Overtime premium
= 48 - 24 - 10 - 8 - 7
= $(-1) per unit
Total contribution = 1000 × 6 + 1000 × -1
= $6000 - $1000
= $4000 Profit
Therefore, additional profit will be generated by accepting the special order is $4000.
Answer:
Check the explanation
Explanation:
What would be the market prices <em><u>(which is the current or present price at which services or goods can be purchased/procured or sold. In the financial markets, the market price can adjust so rapidly which is mostly how people change their bid or the way they offer prices, or as buyers hit the offer or as sellers hit the bid.) </u></em>for both bond on the day can be seen in the attached images below:
Answer:
(a) 8.90%
(b) $102.04
Explanation:
(a) Market capitalization rate i.e. expected return:
= Risk free rate + Beta (Market return - Risk free rate)
= 4% + 0.70 (11% - 4%)
= 8.90%
Therefore, the market capitalization rate is 8.90%.
(b) Intrinsic value of stock:
= Expected dividend ÷ (Required return - Growth rate)
= $5 ÷ (8.90% - 4%)
= $102.04
Therefore, the intrinsic value of the stock is $102.04.
