Answer:
Option (c) is correct.
Explanation:
Given that,
No. of calculators manufacture = 1,120,000
variable cost = $2,352,000
Fixed cost = $1,232,000
No. of calculators for the special order = 232,000
Variable cost per unit:
= Variable cost ÷ No. of calculators manufacture
= $2,352,000 ÷ 1,120,000
= $2.10 per unit
Income (Loss) from special order :
= Sales - Variable costs
= (232,000 × $16 × 30%) - (232,000 × $2.10)
= $1,113,600 - $487,200
= $626,400
When workers refuse to work its called boycotting
All else constant, a bond will sell at a discount when the coupon rate is less than the yield to maturity. A coupon payment on a bond is the periodic interest payment which the bond holder receives during the time between when the bond is issued and when it matures. The annual coupon of a bond divided by its face value is called coupon rate.
Pre-tax cost of debt is calculated as -
Yield to maturity = [ Coupon payment + ( Face value - Price) / Number of periods ] / [ ( Face value - Price) / 2 ]
Coupon payment = 9.6 % / 2 * 1000 = $ 48
Face Value = 1000
Price = 113.5 % * $ 1000 = $ 1135
Number of periods = 20 (i.e. 10 years *2 )
Yield to maturity = [ $ 48 + ( $ 1000 - $ 1135) / 20] / [ ($ 1000 + $ 1135) /2 ]
Yield to maturity = 3.86 %
Annual yield to maturity = 3.86 % * 2 = 7.72 %
Just in Time <span>manufacturing philosophy emphasizes quality and zero defects.
Companies who held this pilosophy usually only made their products after they receive an accurate number of orders.
By doing this, they will cut out their inventories and eliminate unnecessary expenses for their production cost. Famous company who implement this philosophy: Toyota.</span>