Factory rent -$ 3,130- Product - MOH - Fixed
Company advertising- 1,060- Period - Variable
Wages paid to assembly workers -30,500- Product - DL - Variable
Depreciation for salespersons’ vehicles- 2,200- Period - Fixed
Screws- 535- Product - DM - Variable
Utilities for factory -845-Product - MOH - Variable
Assembly supervisor’s salary -3,580- Product - MOH - Fixed
Sandpaper- 185- Product - MOH - Variable
President’s salary -5,180- Period - Fixed
Plastic tubing- 4,050- Product - MOH - variable
Paint -285- Product - DM - Variable
Sales commissions- 1,350- Period - Variable
Factory insurance- 1,170- Product - MOH - fixed
Depreciation on cutting machines- 2,000- Product - MOH - Fixed
Wages paid to painters -7,550- Product - DL - Variable
To know more about the variable costs, and the fixed cost, refer to the link below:
Answer:
Factory rent $ 3,130: Product - MOH - Fixed
Company advertising 1,060: Period - Variable
Wages paid to assembly workers 30,500: Product - DL - Variable
Depreciation for salespersons’ vehicles 2,200: Period - Fixed
Screws 535: Product - DM - Variable
Utilities for factory 845: Product - MOH - Variable
Assembly supervisor’s salary 3,580: Product - MOH - Fixed
Sandpaper 185: Product - MOH - Variable
President’s salary 5,180: Period - Fixed
Plastic tubing 4,050: Product - MOH - variable
Paint 285: Product - DM - Variable
Sales commissions 1,350: Period - Variable
Factory insurance 1,170: Product - MOH - fixed
Depreciation on cutting machines 2,000: Product - MOH - Fixed
Wages paid to painters 7,550: Product - DL - Variable
Explanation:
- Direct materials are those materials and supplies that are consumed during the manufacture of a product, and which are directly identified with that product.
- Direct labor is production or services labor that is assigned to a specific product, cost center, or work order.
- Manufacturing overhead refers to indirect factory-related costs that are incurred when a product is manufactured.
- Period costs are not directly tied to the production process. Overhead or sales, general, and administrative (SG&A) costs are considered period costs. SG&A includes costs of the corporate office, selling, marketing, and the overall administration of company business.
- Product costs are the direct costs involved in producing a product. A manufacturer, for example, would have production costs that include: Direct labor, Raw materials, Manufacturing supplies, Overhead that's directly tied to the production facility such as electricity.
- Variable cost is a corporate expense that changes in proportion to production output.
- Fixed cost is a cost that does not change with an increase or decrease in the amount of goods or services produced or sold.
In this exercise:
Factory rent $ 3,130: Product - MOH - Fixed
Company advertising 1,060: Period - Variable
Wages paid to assembly workers 30,500: Product - DL - Variable
Depreciation for salespersons’ vehicles 2,200: Period - Fixed
Screws 535: Product - DM - Variable
Utilities for factory 845: Product - MOH - Variable
Assembly supervisor’s salary 3,580: Product - MOH - Fixed
Sandpaper 185: Product - MOH - Variable
President’s salary 5,180: Period - Fixed
Plastic tubing 4,050: Product - MOH - variable
Paint 285: Product - DM - Variable
Sales commissions 1,350: Period - Variable
Factory insurance 1,170: Product - MOH - fixed
Depreciation on cutting machines 2,000: Product - MOH - Fixed
Wages paid to painters 7,550: Product - DL - Variable
"There are fewer close substitutes for the product your team supports" will improve your bargaining position with customers.
Option: B
Explanation:
Bargaining is the procedure which is preferred by citizens not only with street shops but it is famous internationally too, where defense, economic trade deal, etc are signed between two different nations to corporate and shake hand of unity. Bargaining is more effective when one allow seller to know that the party itself have more substitutes if the product is not provided by the seller in appropriate rate.
For an instance, if India need to buy some rolling defense helicopters for nation from Russia but prices are high and United States is providing same material with lower price or may be with better rewards on buying from them.
Answer:Mary wins because Melissa failed to object to the merchant's confirmation memorandum.
Explanation:
A contract is first establish based on offer and acceptance between two parties. The telephone conversation of Mellisa to Mary constitute a valid offer and the email communication of Mary constitute a valid acceptance.
Furthermore the time interval between the email communication and delivery of the goods are enough period for Mellisa to counter the acceptance memorandum of Mary which she failed to carry out. This is the reason Mary wins.
Answer:
Explanation:
The Internet is essential for a successful business. The Internet helps businesses to achieve their goals and succeed in this competitive market. Marketing is important for business, and in this case the internet is the first and most important marketing tool for business owners. The Internet gives entrepreneurs great advantages in building a business infrastructure based on customer data and information. In this modern era, successful work without the Internet is impossible. The Internet has changed the ways in which education, communication and data are imported and exported. Internet technology provides excellent data management resources to offer customers unique and creative solutions.
The benefits of turning the organization world to the Internet are immense. The Internet provides great opportunities for organizational suppliers and cost reduction at all stages of the manufacturing process. Supply costs can be reduced through increased markets and increased competition through online supply systems. Another option is to transfer sales and data to cheaper channels. The Internet can significantly accelerate the market by reducing the time needed to transfer, purchase and process daily business contacts such as purchase orders, invoices and shipping. notifications. The Internet has greatly expanded the area of information management: documents and technical documentation can be changed in real time, legally recognized signatures can be used, browsers can be accessed from suppliers and customers' data systems, and processes can be completed faster.
The Internet is a very effective tool for the nation. It has the potential to increase productivity through various but mutually reinforcing ways, including:
- Significantly reduce the cost of many operations required for the production and distribution of goods and services;
- Increase managerial efficiency, especially for companies to manage supply chains more efficiently and to communicate more easily within the company and with customers and partners;
- Increasing competition, price transparency and expanding markets for buyers and sellers;
Increasing marketing and pricing efficiency;
- Increase consumer choice, comfort and satisfaction in a variety of ways.
Many people like to think that mankind is at the beginning of a new era of enlightened communication. The visions are packed with how we can live, work, work and change our interactions with digital technology. It is believed that the Information Age will bring about fundamental change and development and that all countries around the world are building the necessary infrastructure, the "data highways" to respond to the challenges of twenty information societies. It is assumed that the digital revolution promises a lot of progress for developing countries and is allowed to leapfrog the more developed countries by leaps and bounds. The idea of joining the global information society is strongly defended not only by business interests, but also worldwide. Increasingly, the measures are aimed at bringing new information technologies to less developed regions of the world, political agendas at the international, regional and national levels and less international development efforts. to improve people's lives. However, it is important to think about what these needs are if they are properly implemented. Disadvantaged people face major health problems, lack of education, and difficulties in ending.
Answer:
Fixed Cost = $24,000 Variable cost = $5
Explanation:
You have to use the High-Low method
From the table you got, you pick the higher and the lowest unit sold
and calculate the diference between them:
Now 14,400 Units generates a cost of 72,000 Dividing we get the variable component
Then we calculate for the fixed cost:
Fixed Cost = 24,000
For your chosen career, identify the certification or licensing required. Develop a strategy to prepare for certification.
Task 3: Information Technology and Interpersonal Skills
For your chosen career, describe the skills you will need to learn and develop.
For Task 1, I have chosen the career of a financial analyst in the financial services industry. To prepare for this career, a Bachelor's degree in Finance, Accounting, Economics, or a related field is required.
For Task 2, becoming a Certified Financial Analyst (CFA) is highly valued in this career. The CFA program consists of three levels of exams that cover topics such as economics, financial reporting and analysis, ethics, and investment tools.
For Task 3, both information technology and interpersonal skills are important in this career. Financial analysts must have strong analytical skills and be proficient in using financial modeling software and spreadsheet applications.
Task 1- Many employers also prefer candidates with a Master's degree in one of these fields. Additionally, courses in statistics, mathematics, and computer science can be beneficial in this career. Task 2- To prepare for this certification, one should enroll in a CFA program review course, study the material thoroughly, and take practice exams to prepare for the rigorous testing process.
Task 3- They also need to have excellent communication and interpersonal skills to be able to work effectively with clients and team members. Additionally, they must be able to present complex financial information in a clear and understandable manner. Developing and honing these skills can be achieved through a combination of on-the-job experience, training, and continuing education courses.
For more such questions on financial analyst
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b. What is the company's unlevered cost of equity capital?
c-1. What would the cost of equity be if the debt-equity ratio were 2?
c-2. What would the cost of equity be if the debt-equity ratio were 1.0?
c-3. What would the cost of equity be if the debt-equity ratio were zero?
Answer: a. WACC = Ke(E/V} + kd(D/V)(1-T)
9.1 = ke(100/160) + 6.4(60/160)(1-0.22)
9.1 = ke(0.625) + 2.4(0.78)
9.1 = 0.625ke + 1.872
9.1-1.872 = 0.625ke
7.228 = 0.625ke
ke = 7.228/0.625
ke = 11.56%
b. WACC = Ke(E/V)
9.1 = ke(100/160)
9.1 = 0.625ke
ke = 9.1/0.625
ke = 14.56%
c-1. WACC = Ke(E/V} + kd(D/V)(1-T)
9.1 = ke(1/3) + 6.4(2/3)(1-0.22)
9.1 = 0.3333ke + 3.328
9.1 - 3.328 = 0.3333ke
5.772 = 0.3333ke
ke = 5.772/0.3333
ke = 17.32%
c-2. 9.1 = ke(1/2) + 6.4(1/2)(1-0.22)
9.1 = 0.5ke + 2.496
9.1 - 2.496 = 0.5ke
6.604 = 0.5ke
ke = 6.604/0.5
ke = 13.21%
c-3. 9.1 = ke (0/0) + kd (0/)
ke = 0%
Explanation:
a. in the a part of the question, the debt-equity ratio was 0.6 ie 60/100. Thus, the value of the firm equals 160. The figures given in the question were substituted in the formula. Cost of equity was not provided, therefore, it becomes the subject of the formula. The variables are defined as follows:
ke = Cost of equity = ?
kd = Cost of debt = 6.4%
E = Value of equity = 100
D = Value of debt = 60
V = Value of the firm ie E + D = 100 + 60 = 160
T = Tax rate = 22% = 0.22
b. In this part of the question, only equity would be considered since we are calculating unlevered cost of equity. The part of the formula that deals with debt will be ignored.
c-1. In this case, the debt-equity ratio is 2. Therefore, debt equals 2 while equity is 1. The value of the firm becomes 3. There is need to substitute these values in the original formula while other variables remain constant.
c-2. In this scenario, the debt-equity ratio is 1. Thus, equity is 1 and debt is also 1. The value of the company changes to 2. These new values would be substituted in the formula in order to obtain the new cost of equity.
c-3. since the debt-equity ratio is 0, therefore, the cost of equity equals 0.
a. The company's cost of equity capital is 8.6014%. b. The company's unlevered cost of equity capital is 5.8729%. c-1. If the debt-equity ratio were 2, the cost of equity would be 8.6788%. c-2. If the debt-equity ratio were 1.0, the cost of equity would be 8.8894%. c-3. If the debt-equity ratio were zero, the cost of equity would be 5.8729%.
a. The formula to calculate the cost of equity capital is: Cost of Equity = WACC - (Debt/Equity) * (WACC - Cost of Debt) * (1 - Tax Rate). So, by plugging in the given values, we get Cost of Equity = 9.1% - 0.6 * (9.1% - 6.4%) * (1 - 0.22) = 9.1% - 0.6 * 2.7% * 0.78 = 9.1% - 0.4986% = 8.6014%.
b. The unlevered cost of equity capital can be calculated using the formula: Unlevered Cost of Equity = Cost of Equity / (1 + (Debt/Equity) * (1 - Tax Rate)). So, by plugging in the given values, we get Unlevered Cost of Equity = 8.6014% / (1 + 0.6 * 0.78) = 8.6014% / 1.468 = 5.8729%.
c-1. If the debt-equity ratio were 2, the new cost of equity can be calculated using the same formula as in part a. By plugging in the new debt-equity ratio, we get Cost of Equity = 9.1% - 2 * (9.1% - 6.4%) * (1 - 0.22) = 9.1% - 2 * 2.7% * 0.78 = 9.1% - 0.4212% = 8.6788%.
c-2. If the debt-equity ratio were 1.0, the new cost of equity can be calculated using the same formula as in part a. By plugging in the new debt-equity ratio, we get Cost of Equity = 9.1% - 1.0 * (9.1% - 6.4%) * (1 - 0.22) = 9.1% - 1.0 * 2.7% * 0.78 = 9.1% - 0.2106% = 8.8894%.
c-3. If the debt-equity ratio were zero (meaning no debt), the new cost of equity would be the same as the unlevered cost of equity calculated in part b, which is 5.8729%.
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