Answer:
Expected Cost = $60,000
Present Value of Expected Cost = $45,079
Explanation:
The chance that the bankruptcy will happen is 30% and the cost it will incur if it happens is $200,000. The expected cost is the probability of the event happening multiplied by the cost of the event happening.
Expected Cost = 200,000 * 0.3
= $60,000
The present value of this cost assuming a discount rate of 10% is;
= 
= $45,078.89
= $45,079
Answer:
Contribution margin per unit= $12.85
Explanation:
Giving the following information:
Direct materials$ 7.05
Direct labor$ 4.20
Variable manufacturing overhead$ 1.55
Sales commissions $ 1.15
Variable administrative expense$ 0.40
<u>To calculate the contribution margin, we need to use the following formula:</u>
Contribution margin per unit= selling price - total unitary variable cost
Contribution margin per unit= 27.2 - (7.05 + 4.2 + 1.55 + 1.15 + 0.4)
Contribution margin per unit= $12.85
Answer:
$4,373
Explanation:
we will check lower of cost or market for individual items:
Minolta :
= Market value per unit × No. of units
= 158 × 5
= $790
Canon :
= Cost per unit × No. of units
= 145 x 7
= $1,015
Vivitar:
= Market value per unit × No. of units
= 114 x 12
= $1,368
Kodak:
= Cost per unit × No. of units
= 120 x 10
= $1,200
Total amount should be reported on Brik Camera Shop's financial statements:
= $790 + $1,015 + $1,368 + $1,200
= $4,373
Answer:
Option (B) is correct.
Explanation:
Equivalent units of production(EUP) - Materials:
= Transferred out + Ending balance
= 10,451 units × 100% + 3,483 units × 100%
= 10,451 + 3,483
= 13,934
Equivalent units of production(EUP) - conversion:
= Transferred out + Ending balance
= 10,451 units × 100% + 3,483 units × 36%
= 10,451 + 1,253.88
= 11,704.88
Material cost = 
Material cost = 
= 73,157
Conversion cost = 
Conversion cost = 
Conversion cost = 
= 53,715
Therefore,
Total cost of units completed during the period(10,451 units):
= Material cost + Conversion cost
= 73,157 + 53,715
= 126,872
Answer:
The cash flow to stockholders amounts to $45
Explanation:
Cash flow to stockholders is the term which is defined as the cash amount which the company pays out to the shareholders.
The cash flow to stockholders is computed as:
Cash flow to stockholders = Dividend paid - New equity raised
where
Dividend paid is computed as:
Dividend paid = Net Income × %
= $360 × 35%
= $126
New equity raised is $81
So, putting the values above:
Cash flow to stockholders = $126 - $81
Cash flow to stockholders = $45
