Answer:
Given:
12% bonds have a face value of $35,000,000
Bonds sold for $37,702,483 based on the market interest rate of 10%.
∴
The interest expense on July 1 can be computed as
Interest expense = Bonds sold × Effective market interest rate (
= 5%)
= $37,702,483 × .05 (1/2 of the effective interest rate)
= $1,885,124
⇒ The interest expense on July 1 is $1,885,124
Answer:
C
Explanation:
Inflation is a persistent rise in general price level
Rise in Inflation rate = 220 / 200 - 1 = 10%
Rise in tuition fees = 115 / 100 - 1 = 15%
From the calculations, the percentage change in tuition fees is higher than the percentage change in inflation rate
Market prices for 2006.
100 heads of cauliflower = $200 => 1 head of cauliflower = $200 / 100 = $2.
50 bunches of broccoli = $75 => 1 bunch of broccoli = $75 / 50 = $1.50
500 carrots = $50 => 1 carrot = $50 / 500 = $0.10
Total cost of items of food = $2 + $1.50 + $0.10 = $3.60
<u>Market prices for 2007</u>.
75 heads of cauliflower = $225 => 1 head of cauliflower = $225 / 75 = $3.
80 bunches of broccoli = $120 => 1 bunch of broccoli = $120 / 80 = $1.50
500 carrots = $100 => 1 carrot = $100 / 500 = $0.20
Total cost of items of food = $3 + $1.50 + $0.20 = $4.70
CPI of 2006 = $3.60 / $3.60 x 100 = 100
CPI of 2007 = $4.70 / $3.60 x 100 = 130.56
Inflation rate in 2007 = (130.56 - 100) / 100 x 100 = 30.56%
Answer:
Results are below.
Explanation:
The absorption costing method includes all costs related to production, both fixed and variable. <u>The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead</u>.
<u>First, we need to calculate the unitary cost value:</u>
Unitary cost= (6 + 2 + 1.5) + 40,000/10,000
Unitary cost= $13.5
<u>Now, the income statement:</u>
<u></u>
Sales= 9,100*50= 455,000
COGS= (13.5*9,100)= (122,850)
Gross profit= 332,150
Total administrative costs= (3*9,100) + 50,000= (77,300)
Net operating income= 254,850
