Answer:
See below
Explanation:
Statement of cash flow from operating activities using the indirect method.
Net income
$14,000
Adjustment for non cash items:
Depreciation expense
$5,000
Adjustments for changes in working capital:
Increase in accounts receivables
($8,000)
Decrease in inventory
$4,000
Increase in salaries payable
$1,000
Net cash from operating activities
$16,000
When Ian experiences diminishing marginal utility when buying shirts,
a. the price of each additional shirt he purchases falls when he gets volume discounts.
b. the price of each additional shirt he purchases falls when he gets volume discounts.
c. the value of the shirt he purchased start to fall as they wear out over time.
d. the value of the shirt he purchased start to fall as they wear out over time.
e. the personal value of each additional shirt he purchases starts to fall.
Answer:
e. the personal value of each additional shirt he purchases starts to fall.
Explanation:
Diminishing marginal utility means that as the number of goods that you consume increases, the utility received from consuming every additional unit decreases. For example, if you are very thirsty and drink a glass of Coke, the first glass will yield a very high utility. But as you consume more and more Coke, the following glasses will yield lower utility.
Time Remaining 1 hour 8 minutes 42 seconds01:08:42 Item 5 Time Remaining 1 hour 8 minutes 42 seconds01:08:42 Crich Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the estimated direct labor-hours were 22,020 hours and the total estimated manufacturing overhead was $550,500. At the end of the year, actual direct labor-hours for the year were 21,800 hours and the actual manufacturing overhead for the year was $550,500. Overhead at the end of the year was:
Answer:
under-applied overheads is $1,340
Explanation:
Note : I have attached the full question/similar as an image below.
Actual Overheads = $594,960
Applied Overheads = $594,960 / 22,200 x 22,150 = $593,620
Since,
Actual Overheads > Applied Overheads, overheads have been under-applied.
Amount of under-applied overheads is $1,340 ($594,960 - $593,620).
Karim Corp. requires a minimum $8,100 cash balance. If necessary, loans are taken to meet this requirement at a cost of 2% interest per month (paid monthly). Any excess cash is used to repay loans at month-end. The cash balance on July 1 is $8,500 and the company has no outstanding loans. Forecasted cash receipts (other than for loans received) and forecasted cash payments (other than for loan or interest payments) follow.
July August September
Cash receipts $ 24,100 $ 32,100 $ 40,100
Cash payments 28,150 30,100 32,100
Prepare a cash budget for July, August, and September. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Round your final answers to the nearest whole dollar.)
KARIM CORP.
Cash Budget
For July, August, and September
July August September
Beginning cash balance $8,500
Cash receipts 24,100
Total cash available 32,600
Cash payments
Interest revenue
Preliminary cash balance
Additional loan (loan repayment)
Ending cash balance
Loan balance
Loan balance - Beginning of month $0
Additional loan (loan repayment)
Loan balance - End of month
Answer:
a. Ending Cash Balance are as follow:
July = $8,100
August = $8,100
September = $14,343
b. Loan Balance End of Month are as follows:
July = $3,650
August = $1,723
September = $0
Explanation:
Note: See the attached excel file for the cash budget.
In the attached excel file, the following calculations are made:
July Additional loan = Minimum required cash balance - July Preliminary cash balance = $8,100 - $4,450 = $3,650
August Loan repayment = August Preliminary cash balance - Minimum required cash balance = $10,027 - $8,100 = $1,927
September Loan repayment = Loan Balance End of Month at the beginning of September = $1,723
On December 31, 2017, Extreme Fitness has adjusted balances of $980,000 in Accounts Receivable and $91,000 in Allowance for Doubtful Accounts. On January 2, 2018, the company learns that certain customer accounts are not collectible, so management authorizes a write-off of these accounts totaling $28,000. What amount would the company report as its net accounts receivable on December 31, 2017
Answer:
Account receivable = $889,000
Explanation:
The company would record as net receivables, the total amount on accounts receivable less total amount on the allowance for uncollectible account.
The above means that the balance would represent the amount of credit that has gone bad hence the value represent balance on net receivable account.
Therefore,
Accounts receivable
= Adjusted balance in accounts receivable - Allowance for doubtful account
= $980,000 - $91,000
= $889,000
When the number of units produced equals the number of units sold, ______. Multiple select question. absorption costing net income is greater than variable costing net income absorption costing total expense is greater than variable costing total expense absorption costing net income is equal to variable costing net income all fixed overhead incurred flows to the income statement under both costing methods absorption costing total expense is less than variable costing total expense absorption costing net income is less than variable costing net income
Answer:
absorption costing net income is equal to variable costing net income.
Explanation:
A financial statement is a written report that quantitatively describes a firm's financial health. Under the financial statements is a cash-flow statement, which is used to record the cash inflow and cash equivalents leaving a business firm.
Cash flow statement, also known as the statement of cash flows, contains financial information about operating, financial and investing activities.
Additionally, negotiated transfer prices can be defined as the final price reached between the buyer (consumer) of finished goods and services and the trader (seller) of such goods and services.
When the number of units produced equals the number of units sold, absorption costing net income is equal to variable costing net income as all the fixed overhead are entered into the income statement and thus, there wouldn't be any change in inventory.
A newly issued bond pays its coupons once annually. Its coupon rate is 8%, its maturity is 20 years, and its yield to maturity is 10%. a. Find the holding-period return for a 1-year investment period if the bond is selling at a yield to maturity of 9% by the end of the year. (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. If you sell the bond after one year, what taxes will you owe if the tax rate on interest income is 40% and the tax rate on capital gains income is 30%
Answer:
a) total HPR = 19.38%
b) tax liability = $56.23
Explanation:
price paid for the bond:
PV of face value = $1,000 / (1 + 10%)²⁰ = $148.64
PV of coupon payments = $80 x 8.5136 (PVIFA, 10%, 20 periods) = $681.09
market price = $829.73
coupon received during the year = $80
market price when bond is sold:
PV of face value = $1,000 / (1 + 9%)¹⁹ = $194.49
PV of coupon payments = $80 x 8.9501 (PVIFA, 9%, 19 periods) = $716.01
market price = $910.50
total HPR = ($910.50 + $80 - $829.73) / $829.73 = 19.38%
tax liability = ($80 x 40%) + ($80.77 x 30%) = $56.23
Gunes Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 800 units. The costs and percentage completion of these units in beginning inventory were: Cost Percent Complete Materials costs $ 10,600 65% Conversion costs $ 12,800 30% A total of 8,500 units were started and 7,400 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month: Cost Materials costs $ 142,100 Conversion costs $ 359,500 The ending inventory was 50% complete with respect to materials and 35% complete with respect to conversion costs. The cost per equivalent unit for conversion costs for the first department for the month is closest to:
Answer:
$46.04
Explanation:
It is important to note that Gunes Corporation uses the weighted-average method. This means we are only interested in the Equivalent units completed and transferred and units in working process.
Total Conversion Cost
Consider the cost in opening work in process and cost during the year.
Total Conversion Cost = $12,300 + $359,000 = $371,300
Equivalent Units
Consider work completed in units completed and transferred and units in working process.
Equivalent Units = 7,400 x 100% + 1,900 x 35 % = 8,065 units
The units in working process have been calculated as :
Units in working process = 800 + 8500 - 7,400 = 1,900
Cost per Equivalent Units
Cost per Equivalent Unit = Total Cost ÷ Total Equivalent Units
= $371,300 ÷ 8,065 units
= $46.04
The cost per equivalent unit for conversion costs for the first department for the month is closest to $46.04
Answer:
$46.16
Explanation:
It is important to note that Gunes Corporation uses the weighted-average method. This means we are only interested in the Equivalent units completed and transferred and units in working process.
Total Conversion Cost
Consider the cost in opening work in process and cost during the year.
Total Conversion Cost = $12,800 + $359,500 = $372,300
Equivalent Units
Consider work completed in units completed and transferred and units in working process.
Equivalent Units = 7,400 x 100% + 1,900 x 35 % = 8,065 units
The units in working process have been calculated as :
Units in working process = 800 + 8500 - 7,400 = 1,900
Cost per Equivalent Units
Cost per Equivalent Unit = Total Cost ÷ Total Equivalent Units
= $372,300 ÷ 8,065 units
= $46.16
Question 11 (3 points)
When considering the costs and benefits of a decision, you should do something as
long as
a) the benefits are less than the costs
b) the costs are less than the benefits
c) the costs and benefits are both high
d) the costs and benefits are both low
Answer:b
Explanation:
I think it is
what happens if a business doesn't meet target profit
Answer:
If revenues are less than total cost, a company does not reach the break even point, which results in a less. A company that fails to make enough sales to meet the break even point accumulates debt over time, which can eventually cause a company to go out of business .
Explanation:
I hope it is the right answer you were looking for.
Crystal lives in the fictional country of Cuse, which raises government revenue by taxing everyone the same amount. The government of Cuse has just implemented a tax cut that reduces annual taxes by $2,500 per person. However, government spending has not changed, nor is it likely change in the future. The tax cut has raised Crystal's income by $2,500. If Crystal acts according to the prediction of new classical economics (and doesn't plan to leave Cuse), her consumption is likely to increase by_______ .
Suppose that instead of cutting taxes while keeping its spending the same, the government did the oppo it increased its spending by $2,500 per person while keeping taxes the same. If everyone in Cuse acted like Crystal, the likely increase in aggregate demand would be_______ per person.
Answer: $0; $0
Explanation:
New classical economists believe that any fiscal policy that the government embarks on is ineffective on the goods demanded by people.
If the government reduces taxes, Crystal (according to the New classical) will believe that the government will raise taxes in future to make up for the shortfall so she will send the $2,500 to savings so she can be able to pay off the future taxes.
If the government increases spending, Crystal will believe that this will be financed by future tax increases so she will still save the money to pay off future taxes.
The objective theory of contracts refers to the fact that in determining whether a valid offer exists, the court will mainly consider whether: (A) The offeror and offeree were acting in a calm, reasonable, unemotional manner. (B) The intentions--both obvious and unobserved--of the offeror and offeree match their actions. (C) The offer would seem fair from the perspective of a prudent and reasonable person. (D) A reasonable person, observing the situation, would believe a genuine offer had been made.
Answer:
(A) The offeror and offeree were acting in a calm, reasonable, unemotional manner.
Explanation:
A contract can be defined as an agreement between two or more parties (group of people) which gives rise to a mutual legal obligation or enforceable by law.
There are different types of contract in business and these includes: fixed-price contract, cost-plus contract, bilateral contract, implies contract, unilateral contract, adhesion contract, unconscionable contract, option contract, express contract, etc.
Mutual assent is a legal term which represents an agreement by both parties to a contract. When two parties to a contract both have an understanding of the parameters, terms and conditions surrounding a contract, it ultimately implies that they are in agreement; this is generally referred to as mutual assent.
Hence, the objective theory of contracts refers to the fact that in determining whether a valid offer exists, the court will mainly consider whether the offeror and offeree were acting in a calm, reasonable, unemotional manner.
Note: the offeror is the party that offers the project to another party while the offeree is the recipient of the offer in a contract.
Air United, Inc. manufactures two products: missile range instruments and space pressure gauges. During April, 50 range instruments and 300 pressure gauges were produced. Overhead costs of $94,500 were estimated and allocated to the following activities: Activities Cost Drivers Total Cost
Materials handling Number of requisitions $40,000
Machine setups Number of setups 21,500
Quality inspection Number of inspections 33,000
$94,500 The cost driver volume for each product was as follows. Cost Drivers Instruments Gauges Total
Number of requisitions 400 600 1,000
Number of setups 200 300 500
Number of inspections 200 400 600 Instructions
(a) Determine the overhead rates for each activity Expected Use Estimatedof Cost Driver/Activity-Based
Activity Cost Pools Overhead Activity OH Rates
Materials Handling/ requisition
Machine Setups/setup
Quality inspections/ inspection
(b) Assign the manufacturing overhead costs for April to the two products using activity-based costing, and calculate a per unit OH cost.
Answer:
Results are below.
Explanation:
First, we need to calculate the activity rates using the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Materials handling= 40,000 / 1,000= $40 per requisition
Machine setups= 21,500 /500= $43 per setup
Quality inspection= 33,000 / 600= $55 per inspections
Now, we can allocate overhead to each product:
Missile range instruments:
Materials handling= 40*400= $16,000
Machine setups= 43*200= $8,600
Quality inspection= 55*200= $11,000
Total allocated overhead= $35,600
Space pressure gauges:
Materials handling= 40*600= $24,000
Machine setups= 43*300= $12,900
Quality inspection= 55*400= $22,000
Total allocated overhead= $58,900
Finally, the unitary overhead cost:
Missile range instruments:
Unitary allocated overhead= 35,600/50= $712
Space pressure gauges:
Unitary allocated overhead= 58,900/300= $196.33
express 75 kobo as a decimal of 1 naira 50 kobo
define moral hazard.
Answer:
Moral hazard is type of situation in where on person or party gets involved in a very risky event when knowing that it is protected against and the person or party, which will incur the cost. This can arise when both people or parties have a incomplete information about on another or each other.
CAN SOMEONE PLEASE ACTUALLY HELP AND NOT USE THIS JUST FOR POINTS. I REALLY NEED THE HELP.
What are ?
Business Description
Marketing Strategies
Competitive Analysis
Marketing Plan
Operations and Management Plan
Financial Plan
The relationship between the type of diversification and overall firm performance Multiple Choice takes on the shape of an inverted U so related diversification has the best performance. is negative, meaning that more diversification always leads to lower firm performance. there is no relationship between the type of diversification and overall firm performance. takes on the shape of a U where modest diversification has the worst performance. is positive, meaning that more diversification always leads to higher firm performance.
Answer:
takes on the shape of an inverted U so related diversification has the best performance.
Explanation:
A portfolio variance is used to determine the overall risk or dispersion of returns of a portfolio and it is the square of the standard deviation associated with the particular portfolio.
The portfolio variance is given by the equation;
[tex]Variance = w^{2}_{1} d^{2}_{1} + w^{2}_{2} d^{2}_{2}+2w_{1}w_{2}C_{OV_{1, 2}}[/tex]
Where;
[tex]w_{n}[/tex] = the weight of the nth security.
[tex]d^{2}_{n}[/tex] = the variance of the nth security.
[tex]C_{OV_{1, 2}}[/tex] = the covariance of the two security.
The relationship between the type of diversification and overall firm performance takes on the shape of an inverted U, so related diversification has the best performance.
All of Ameliorate Inc.'s sales are on account. 60% of the credit sales are collected in the month of sale, 30% in the month following sale, and 10% in the second month following sale. The following are budgeted sales data for the company: January February March April Total sales $700,000 $500,000 $400,000 $600,000 Cash receipts in April are expected to be:
Answer:
Total cash collection= $530,000
Explanation:
Giving the following information:
Sales:
February $500,000
March $400,000
April $600,000
60% of the credit sales are collected in the month of sale, 30% in the month following sale, and 10% in the second month following the sale.
Cash collection April:
Cash collection credit sales from April= (600,000*0.6)= 360,000
Cash collection credit sales from March= (400,000*0.3)= 120,000
Cash collection credit sales from February= (500,000*0.1)= 50,000
Total cash collection= $530,000
The cash receipts in April should be $530,000.
Calculation of the cash receipts:
= Cash collection from April + cash collection from march + cash collection from february
= (60% of $600,000) + (30% of $400,000) + (10% of $500,000)
= $360,000 + $120.000 + $50,000
= $530,000
hence, The cash receipts in April should be $530,000.
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Sheffield Company took a physical inventory on December 31 and determined that goods costing $218,900 were on hand. Not included in the physical count were $25,610 of goods purchased from Pelzer Corporation, f.o.b. shipping point, and $22,510 of goods sold to Alvarez Company for $32,160, f.o.b. destination. Both the Pelzer purchase and the Alvarez sale were in transit at year-end. What amount should Sheffield report as its December 31 inventory
Answer:
$267,020
Explanation:
Calculation to determine what amount should Sheffield report as its December 31 inventory
Using this formula
December 31 inventory= Goods costing on hand+Goods purchased+Goods sold
Let plug in the formula
December 31 inventory= $218,900+$25,610+$22,510
December 31 inventory=$267,020
Therefore The amount that Sheffield should report as its December 31 inventory is $267,020
Gabrielle just won $2.5 million in the state lotte, she is given the options of receiving a total of $1.3 million now, or she can elect to be paid 100,000 at the end of each of the next 25year. if Gabrielle can earn 5% annually on her investment, from a strict economic point of view which option should she takes
é miulhão e meiom Explanation:
Hoag Corporation applies manufacturing overhead to products on the basis of standard machine-hours. Budgeted and actual fixed manufacturing overhead costs for the most recent month appear below: Original Budget Actual Costs Fixed overhead costs: Supervision $ 9,880 $ 9,970 Utilities 4,160 4,440 Factory depreciation 21,320 21,190 Total fixed manufacturing overhead cost $ 35,360 $ 35,600 The company based its original budget on 2,600 machine-hours. The company actually worked 2,280 machine-hours during the month. The standard hours allowed for the actual output of the month totaled 2,080 machine-hours. What was the overall fixed manufacturing overhead volume variance for the month
Answer: $7,072 Unfavorable
Explanation:
Find fixed manufacturing overhead rate:
= Total budgeted fixed manufacturing overhead cost / Budgeted machine hours
= 35,360 / 2,600
= $13.60
Variance Favorable (Unfavorable) = (Standard hours allowed - Budgeted machine hours) * fixed manufacturing overhead rate
= (2,080 - 2,600) * 13.60
= -$7,072
DT Motors paid its first annual dividend yesterday in the amount of $4.75 a share. The company plans to increase the dividend at a rate of 20 percent per year for the next 3 years. Thereafter, the dividend is expected to grow at 3.50 percent per year indefinitely. What is the amount of the dividend that is expected to be paid 11 years from now (D11 )
Answer:
$9.52
Explanation:
Calculation for the amount of the dividend that is expected to be paid 11 years from now (D11 )
D11 = 4.75(1.20)3(1.035)8
D11= $9.52
Therefore the amount of the dividend that is expected to be paid 11 years from now (D11 ) is $9.52
You should use a multimedia slide or canvas only if __________. a. the slide or canvas highlights important points b. your presentation is longer than ten minutes c. you have completed training in developing and using the software d. you develop your ideas using the direct organizational strategy
Answer:
a.
Explanation:
thats my answer my module
You should use a multimedia slide or canvas only if the slide or canvas highlights important points. The Option A.
When should you consider using a multimedia slide or canvas?Multimedia slides or canvases are effective tools for highlighting important points in your presentation. By incorporating visual elements, such as images, charts, or videos, you make key information more engaging and memorable for your audience.
These visual aids can help reinforce your message, clarify complex concepts, and create a visually appealing presentation but it is important to use multimedia slides or canvases judiciously and ensure that they serve a purpose in enhancing the understanding and impact of your content. Therefore, the Option A is correct.
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Sunland, Inc. had pre-tax accounting income of $2100000 and a tax
rate of 40% in 2018, its first year of operations. During 2018 the company had the following transactions:
Received rent from Jane, Co. for 2019 $90000
Municipal bond income $114000
Depreciation for tax purposes in excess of book depreciation $54000
Installment sales profit to be taxed in 2019 $156000
At the end of 2018, which of the following deferred tax accounts and balances exist at December 31, 2018?
a. Deferred tax asset $57600
b. Deferred tax asset $36000
c. Deferred tax liability $57600
d. Deferred tax liability $36000
Answer:
b. Deferred tax asset $36000
Explanation:
The computation of the deferred tax is shown below:
= Rent received from Jane for the year 2019 × tax rate in 2018
= $90,000 × 40%
= $36,000
Here the rent received on 2019 but the tax should be paid on 2018 so this represent the deferred tax asset
Therefore the option b is correct
Saturn Corporation issued $300,000 par value 10-year bonds at 107 on January 1, 20X3, which Star Corporation purchased. Pluto Corporation owns 65% of Saturn's voting shares. On Jan 1, 20X7, Pluto Corporation purchased $120,000 face value of Saturn bonds from Star for $118,020. On the date Pluto purchased the bonds, the bonds' carrying value on Saturn's book was $126,019. The bonds pay 12 percent interest annually on December 31. The preparation of consolidated financial statements for Saturn and Pluto at December 31, 20X9, required the following consolidating entry:
Based on the information given above, what amount of gain or loss on bond retirement is included in the 20X7 consolidated income statement?
a. $8,000 gain
b. $5,200 gain
c. $8,000 loss
d. $5,200 loss
Answer:
a. $8,000 gain
Explanation:
The face value of the bonds purchased by Pluto Corporation are $120,000. The bonds are purchased at discount of $1,980. The bonds have carrying value of $126,019 at the time of purchase. The net gain or loss is calculated by the difference between two values.
$120,000 - $126,019 - $6,019
The discount amount of the bond was $1,980.
Total gain on the bonds approximately ($6,019 + $1,980) = $8,000
Lang Warehouses borrowed $196,401 from a bank and signed a note requiring 7 annual payments of $33,942 beginning one year from the date of the agreement. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: Determine the interest rate implicit in this agreement. (Do not round intermediate calculations. Round interest rate to 1 decimal place.)
Answer:
5%
Explanation:
Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested
IRR can be calculated with a financial calculator
The interest rate implicit in the agreement can be determined by finding the internal rate of return.
Cash flow in year 0 = $-196,401
Cash flow each year from year 1 to 7 = $33,942
IRR = 5%
To find the IRR using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button.
On December 31, 2020, Oriole Company sold for $153000 an old machine having an original cost of $266000 and a book value of $113000. The terms of the sale were as follows: $40000 down payment $56500 payable on December 31 each of the next two years The agreement of sale made no mention of interest; however, 7% would be a fair rate for this type of transaction. What should be the amount of the notes receivable net of the unamortized discount on December 31, 2020 rounded to the nearest dollar? (The present value of an ordinary annuity of 1 at 7% for 2 years is 1.80802.)
Answer:
$102,153.13
Explanation:
Amount payable on December 31 each of the next two years = $56,500
The PV of ordinary annuity of ($1,7%,2 years) is 1.80802
The amount of the notes receivable net of the unamortized discount = Amount Payable * PV($1, 7%, 2)
= $56,500 * 1.80802
= $102,153.13
So, the amount of the notes receivable net of the unamortized discount on December 31, 2020 will be $102,153.13.
define nationalization.
Answer:
the process of transforming privately owned assets into public assets by bringing them under the public ownership of a national government or state.
Explanation:
On January 2, year 1, Lava, Inc. purchased a patent for a new consumer product for $90,000. At the time of purchase, the patent was valid for fifteen years; however, the patent's useful life was estimated to be only ten years due to the competitive nature of the product. On December 31, year 4, the product was permanently withdrawn from sale under governmental order because of a potential health hazard in the product. What amount should Lava charge against income during year 4, assuming amortization is recorded at the end of each year
Answer:
The amount Lava should charge against income during year 4 is $63,000.
Explanation:
Since amortization is assumed to be recorded at the end of each year, this can be calculated as follows:
Annual amortization expense = Cost of the patent / Patent's estimated useful life = $90,000 / 10 = $9,000
Amortization expense recorded prior to year 4 = Annual amortization expense * 3 years = $9,000 * 3 = $27,000
Unamortized cost of patent charge against income during year 4 = Cost of the patent - Amortization expense recorded prior to year 4 = $90,000 - $27,000 = $63,000
Therefore, the amount Lava should charge against income during year 4 is $63,000.
UPS, a delivery services company, has a beta of 1.1, and Wal-Mart has a beta of 0.7. The risk-free rate of interest is 4% and the market risk premium is 7%. What is the expected return on a portfolio with 30% of its money in UPS and the balance in Wal-Mart
Answer:
7.78%
Explanation:
Calculation for the expected return on a portfolio
First step is to calculate the portfolio beta
Portfolio beta=30%*1.1+30%*0.7=1.15
Portfolio beta=0.33+0.21
Portfolio beta=0.54
Now let calculate the expected return using this formula
Expected return=rf+(Portfolio beta*mrp)
Let plug in the formula
Expected return=4%+(0.54*7%)
Expected return=7.78%
Therefore the expected return on a portfolio is 7.78%
Costs associated with two alternatives, code-named Q and R, being considered by Albiston Corporation are listed below: Alternative Q Alternative R Supplies costs $ 74,000 $ 74,000 Power costs $ 34,200 $ 33,400 Inspection costs $ 27,000 $ 33,400 Assembly costs $ 39,000 $ 39,000 Required: a. Which costs are relevant and which are not relevant in the choice between these two alternatives
Answer:
Explanation:
Relevant costs are the costs which are affected by the decisions made by the management of an organization while irrelevant costs do not change in future as they're not affected by the decisions from the management.
Based on the information given, the relevant cost are:
1. Power cost
2. Inspection cost
The non relevant cost are:
1. Supplies cost
2. Assembly cost