Answer: B. $438
Explanation:
Correspondence Cost = Number of letters * Predetermined cost of correspondence
Predetermined cost of correspondence = Allocated cost/ Allocated base
= 14,000/1,600 letters
= $8.75 per letter
Northeast Office used 50 letters for correspondence.
Cost = 8.75 * 50
= $437.50
= $438
Answer: d. total cost will fall by more than total benefit will fall.
Explanation:
At this point where Marginal benefit is greater than marginal cost, it means that every additional unit produced gives a higher total cost than total benefit.
If activity levels were to be decreased therefore, total cost would fall more than total benefit would fall until a point is reached where total benefit and total cost would be falling at the same rate. This would be the optimal activity point because Marginal cost would be equal to Marginal benefit.
Answer:
43150 units
Explanation:
For computing the equivalent units of production for conversion costs, first, we have to find the sale units which is shown below:
= Production units for material - ending work in progress units
= 44,500 units - 4,500 units
= 40,000 units
Now the ending work in progress units for conversion would be
= Ending work in progress units × percentage of completion
= 4,500 units × 70%
= 3,150 units
So, the equivalent units of production for conversion costs would be
= Sale units + ending work in progress units for conversion
= 40,000 units + 3,150 units
= 43,150 units
Answer and Explanation:
Given that the dividend will grow at 20% for two years and then a constant 6% at third year
1st year dividend at 20%= $3
Present value of the dividend for the first year=PV factor at 15%(from table) = $2.61
2nd year dividend at 20% = $3.60
Present value of the dividend for the second year = PV factor at 15%(from table) $2.72
3rd year dividend at 6% growth rate =
$42.40
Present value of the dividend for the third year = PV factor at 15% = $32.06
Current price of the stock =$2.61+$2.72+$32.06
=$37.39
The market price of a security is $50. Its expected rate of return is 14%, and the market price of the security is mathematically given as
MR=27.368
<h3>What will be the market price of the security if its correlation coefficient with the market portfolio doubles?</h3>
Generally, the equation for expected rate return is mathematically given as
RR=(Rf+beta*(Rm-Rf)
Therefore
RR=(Rf+beta*(Rm-Rf)
Beta= (13-7)/8
Beta=0.75
In conclusion, the market price of a security
MR=DPs/RR
Where
Po=DPS/RR'
DPS=40*0.13
DPS=$5.23
and
RR=&+1.5*8
RR=19%
Hence
MR=$5.23/0.19
MR=27.368
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