Answer:
Consider the following calculations
Explanation:
Step 1. Given information
- Sales $7,270,000
- Gross profit 1,450,000
- Indirect labor 330,000
- Indirect materials 195,000
- Other factory overhead 90,000
- Materials purchased 5,100,000
- Total manufacturing costs for the period 6,170,000
- Materials inventory, end of period 480,000
Step 2. Calculation according to the following formulas.
a. Cost of goods sold = Sales-Gross profit = 7270000-1450000= $582000
b. Direct materials cost = 5100000-195000-480000= $4425000
c. Direct labor cost = 6170000-4425000-330000-195000-90000= $1130000
Answer:
The answer is letter D.
Explanation:
Charities. It’s important to note that sometimes private solutions to externalities do not work. For example, this occurs when one party repeatedly holds out for a better deal. This describes the problem of (transaction cost, breakdown in bargaining, property held in common)
Answer:
The expected rate of return on the market portfolio is 14%.
Explanation:
The expected rate of return on the market portfolio can be calculated using the following capital asset pricing model (CAPM) formula:
Er = Rf + B[E(Rm) - Rf] ...................... (1)
Where:
Er = Expected rate of return on the market portfolio = ?
Rf = Risk-free rate = 5%
B = Beta = 1
E(Rm) = Market expected rate of return = 14%
Substituting the values into equation (1), we have:
Er = 5 + 1[14 - 5]
Er = 5 + 1[9]
Er = 5 + 9
Er = 14%
Therefore, the expected rate of return on the market portfolio is 14%.
Answer:
It is 16.9
Explanation:
Operating cycle = Inventory turnover + Receivable turn over - payable turnover
Hence, Operating cycle = 7.3+9.6
=16.9
Operating cycle implies how long it takes us to convert entire production process to cash .
It has an direct relationship with the level of working capital required. The higher the operating cycle, the higher the working capital investment required to keep the operation running.
A cash driven businesses like restaurant which hardly sell on credit will certainly have shorter operating cycle compared to a manufacturing company.
