Answer:
$115,269 decrease
Explanation:
Below are the following information given in the question.
Purchase price = $15
Variable cost per unit = $12
Fixed cost per unit = $10. i.e $22-$10
Production in units = 38,423
N.B. As in the above scenario, we will need to factor in the variable cost per unit only in order to determine whether it is convenient to make the part in house or purchase it. Also, we will have to ignore fixed costs because of the fact that it is constant in the option of whether to buy or make part in house.
Therefore,
Option at purchasing/Buying
= $38,423 × $15
= $576,345
Option at making the part in house
= $38,423 × $12
= $461,076
Cost difference is therefore = $115,269 decrease
i think its stick your middle fingers up in the sky and at these moderators hell yeah!!!!!
The correct answer is the second one.
This question is easiest solved through the process of elimination. Organized labor is another term for labor unions, and the second choice is the only one that is addressing labor unions.
Answer:
13.35%
Explanation:
The computation of the after-tax weighted average cost of capital is shown below:
Weighted average cost of capital is
= Weight of equity × Cost of equity + weight of debt × after cost of debt
where,
Weight of equity = $120,000,000 ÷ $200,000,000 = 0.60
Cost of equity = 17%
Weight of debt = $80,000,000 ÷ $200,000,000 = 0.40
And, after cost of debt is come from applying the rate formula which is shown in the attached spreadsheet i.e 12.13%
So after tax it is
= 12.13% × (1 - 0.35)
= 12.13% × 0.65
= 7.8845%
So, the WACC is
= 0.60 × 17% + 0.40 × 7.8845%
= 10.2% + 3.1538%
= 13.35%
Answer:
Feb 5
Dr Cash dividend (900,000 shares*.35) 315,000
Cr Dividend payable 315,000
Mar 18
Dr Dividend payable 315,000
Cr Cash 315,000
Explanation:
Preparation of the Journal entry to Record the declaration of the payment of the dividend.
Based on the information given we were told that the on Feb 5 the board of directors declared dividend of the amount of $0.35, which is to be paid on March 18 including 900,000 shares that was issued and outstanding which means that the company Journal entries will be:
Feb 5
Dr Cash dividend (900,000 shares*.35) 315,000
Cr Dividend payable 315,000
Mar 18
Dr Dividend payable 315,000
Cr Cash 315,000