An apparel manufacturing plant has estimated the variable cost to be $21 per unit. Fixed costs are $1M per year. Forty percent of its business is with one preferred customer and the customer is charged at cost(without profit). The remaining 60% of the business is with several differant customers and they are charged $40 per unit. Find. a.The break even volume for this job.
b.The unit cost if 100,000 units are made per year.
c.The annual profit for this quantity(100,000 units).

Answer:

the firm's cost of equity is 17.808%

Explanation:

A firm's cost of equity is the return expected by holders of Common Stock.

The Data available allows us to use the Capital Asset Pricing Model (CAPM) to determine the cost of Equity.

Cost of Equity = Risk Free Rate + Company`s Beta × Expected Return on Market Portfolio

                       = 2.8%+1.34×11.2%

                       = 17.808%

Answer:

Cost of equity = 14.1%

Explanation:

The capital asset pricing model is a risk-based model. Here, the return on equity is dependent on the level of reaction of the the equity to changes in the return on a market portfolio. These changes are captured as systematic risk. The magnitude by which a stock is affected by systematic risk is measured by beta.

Under CAPM, Ke= Rf + β(Rm-Rf)

Rf-risk-free rate (treasury bill rate), β= Beta, Rm= Return on market.

Rf- 2.8% , Rm- 11.2%, β-1.34

Using this model,

Ke= 2.8% + 1.34×(11.2%-2.8%)

= 14.1%

Answer:

Part 1 . Determine the cost of goods manufactured

Direct materials                                                                        $280,000

Direct labor                                                                               $324,000

Factory overhead                                                                     $188,900

Add Opening Stock of Work In Progress Inventory              $72,300

Less Closing Stock of Work In Progress Inventory                 $76,800

Cost of Goods Manufactured                                                  $788,700

Therefore cost of goods manufactured is $788,700

Part 2 . Statement of Cost of Goods Manufactured

Opening Stock of Finished Goods Inventory                            39,600

Add Cost of Goods Manufactured                                             788,700      

Less Closing Stock of Finished Goods                                       (41,200)

Cost of Goods Manufactured                                                       787100

Explanation:

Part 1 . Determine the cost of goods manufactured

This is a calculation of all Overheads Incurred in the  Manufacturing process

Part 2 . Statement of Cost of Goods Manufactured

It is Important to note that Glenville Company is in the Manufacturing Business and their Cost of Sales cost from cost of Finished Goods.This would be the statement available for external use

Answer:

B. 2,600 to 2,000.

Explanation:

tax revenue = units x tax rate

units = tax revenue / tax rate = 6,000/3 = 2,000

2,000 will be the quantity after taxes.

6000 goverment revenue - 3900 consumer surplus - 3000 producer surplus

900 deathweight loss

(tax x ↓unit)/2 = deathweight loss

(3 x ↓unit)/2 = 900

(3 x ↓unit) = 900 *2

↓unit = 1800/3 = 600

It decrease to 2000 from 2600

Final answer:

A $3 per unit tax creates a wedge between the price paid by consumers and the price received by producers, representing a production cost increase. This results in a leftward shifted supply curve, with reduced consumer and producer surplus. The burden of the tax is shared, decreasing the equilibrium quantity of goods.

Explanation:

When a $3 per unit tax is imposed on a good, the government creates a wedge between the price paid by consumers and the price received by producers. The distance between these prices equals the tax rate.

The new market price is the price paid by consumers, but sellers receive less per unit sold as they pay the difference (tax) to the government. This tax is akin to an increase in production cost, symbolized by a leftward shift of the supply curve. The new supply curve intercepts the demand at the new quantity.

The tax revenue is found by multiplying the tax per unit by the total quantity sold. The tax incidence, or burden, is shared by both consumers and sellers. In this case, the consumers' surplus decreased by $3,900 and the producers' surplus decreased by $3,000, causing a total tax revenue of $6,000 and a decrease in the equilibrium quantity of goods.

Learn more about Impact of Tax on Supply and Demand here:

brainly.com/question/29785673

#SPJ3

Answer:

Journal entries:

cash       493,574.88 debit

 bonds payable   435,000.00 credit

 premium on bp     58,574.88 credit

--to record issuance--

Interest expense 19743

Amortization 6357

cash 26100

--to record Dec 31st, 2020--

Interest expense 19488.72

Amortization 6611.28

cash 26100

--to record June 30th, 2021--

bonds payable    130,500.00 debit

premium on bp       13,681.98 debit

interest expense    17,400.00 debit

      gain on redemption           25,081.98 credit

       cash                                 136,500.00 credit

--to record redemption--

premium on BP      4,813.04 debit

interest expense  13,456.96 debit

        cash                         18,270 credit

-- to record December 31st, 2021--

Explanation:

First, we solve for the proceeds from the bonds payable:

C 26,100 (435,000 x 12% / 2)

time 8 ( 4 years x 2)

yield to maturity  0.04 ( 8% / 2)

PV $175,724.6412

Maturity   435,000.00

time   8.00

rate  0.04

PV   317,850.24

PV c $175,724.6412

PV m  $317,850.2392

Total $493,574.8804

We now build the amortization schedule.

We take this value, we multiply by the interest rate and then, solve for amortization and ending carrying value.

To record the redemption:

accrued interest:

435,000 x 0.12 x 4/12 (months from June to oct) = 17,400

premium:

480,606.6 - 435,000 = 45,606.6

proportional of premium:

45,606 / 435,000 x 130,500 = 13.681,98

we now solve for the gain/loss on redemption:

130,500 + 13,681.98 + 17,400 = 161.581,9 value redeem

                                      for cash 136,500

gain on redemption 25.081,98

bonds payable    130,500.00 debit

premium on bp       13,681.98 debit

interest expense    17,400.00 debit

      gain on redemption           25,081.98 credit

       cash                                 136,500.00 credit

Now, we solve for Dec 31st, 2021 entry.

bonds payable: 435,000 - 130,500 = 304,500

premium: 45,606 - 13,681.98 = 31.924,02

interest expense:

(304,500 + 31,924.02) x 0.04 = 13,456.96

cash outlay:

304,500 x 0.06 = 18,270

amortization 18,270 - 13,456.96 = 4,813.04

Answer:

The correct answer is letter "B": Enterprise planning and monitoring.

Explanation:

Information Systems impact the Supply Chain at planning and monitoring stages. Information Systems allow managers to analyze information about the flow of the supply chain and allows them to spot where improvement is necessary. Besides, it allows tracking production to maximize it. Decisions can be made upon the feed Information Systems provide.