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3 years ago

8

often the most difficult part of computing accurate unit costs is determining the proper amount of _________ to assign to each p

roduct, service, or job.

1 answer:

Snezhnost [94]3 years ago

6 0

Overhead cost.

Hope this helps!

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when the market demand curve crosses the long-run average total cost curve where average total costs are declining, the firm is

cluponka [151]

Answer: Natural monopoly

Explanation:

A natural monopoly is a form of monopoly that comee into being due to huge start-up costs and also economies of scale. A firm that has a natural monopoly may be the only producer of a particular good or service.

A natural monopoly occurs when the long-run average total cost curve is crossed by the markwt demand curve when the average total costs are still diminishing.

5 0

3 years ago

Local Co. has sales of $ 10.1 million and cost of sales of $ 5.5 million. Its selling, general and administrative expenses are

Firlakuza [10]

Answer:

1. 45.5%

2. 13.3%

3. 7.2%

Explanation:

The formulas and calculations are shown below:

1. Gross margin = (Sales - cost of sales) ÷ (sales) × 100

= ($10.1 million - $5.5 million) ÷ ($10.1 million) × 100

= ($4.6 million) ÷ ($10.1 million) × 100

= 45.5%

Gross profit = Sales - cost of sales

2. Operating margin = (Gross profit - selling, general and administrative expenses - research and development - annual depreciation charges) ÷ (sales) × 100

= ($4.6 million - $460,000 or $0.46 million - $1.4 million - $1.4 million) ÷ ($10.1 million) × 100

= ($1.34 million) ÷ ($10.1 million) × 100

= 13.3%

Operating income = Gross profit - selling, general and administrative expenses - research and development - annual depreciation charges

3. Net profit margin = (Operating income - taxes) ÷ (sales) × 100

= ($1.34 million - $0.6097 million) ÷ ($10.1 million) × 100

= ($0.7303 million) ÷ ($10.1 million) × 100

= 7.2%

The income tax expense = Operating income × income tax rate

= $1.34 million × 45.5%

= $0.6097 million

6 0

3 years ago

Roy Gross is considering an investment that pays 7.60 percent. How much will he have to invest today so that the investment will

Reptile [31]

Answer:

He has to invest $16,803.32 so that the investment will be worth $27,000 in six years with a 7.6% interest rate.

Explanation:

Year 6: 27,000

Year 5: 27,000 - (27,000 x 7.6 / 100) = 27,000 - 2,052 = $24,948

Year 4: 24,948 - (24,948 x 7.6 / 100) = 24,948 - 1,896.05 = $23,051.95

Year 3: 23,051.95 - (23,051.95 x 7.6 / 100) = 23,051.95 - 1,751.95 = $21,300

Year 2: 21,300 - (21,300 x 7.6 / 100) = 21,300 - 1,618.80 = $19,681.20

Year 1: 19,681.20 - (19,681.20 x 7.6 / 100) = 19,681.20 - 1,495.77 = $18,185.42

Year 0: 18,185.42 - (18,185.42 x 7.6 / 100) = 18,185.42 - 1,382.10 = $16,803.32

6 0

3 years ago

At the end of a fiscal period, expense accounts are closed through

emmasim [6.3K]

Answer:

see the explanation

Explanation:

The temporary accounts get closed at the end of an accounting year. Temporary accounts include all of the income statement accounts (revenues, expenses, gains, losses), the sole proprietor's drawing account, the income summary account, and any other account that is used for keeping a tally of the current year amounts.

3 0

3 years ago

A firm issues two-year bonds with a coupon rate of 6.9%, paid semiannually. The credit spread for this firm's two-year debt

fomenos

Answer:

The price of the bond is $104.15

Explanation:

The price of the company's new two year debt is the present value of its future cash flows.

Since the debt pays coupon semi-annually the number of coupons payable over two years is 4 and pays par value with the fourth coupon.

Yield to maturity is 3.9%+0.8%=4.7%/2=2.35% (semi-annually)

coupon rate is 6.9%/2=3.45%

PMT=3.45%*100

PMT=$3.45

par value $100

nper=2*2=4

Using present value formula in excel

pv=(rate,nper,pmt,fv)

pv=(2.35%,4,3.45,100)

pv=$104.15

4 0

3 years ago