Answer:
It is cheaper to make the units in-house by $300,000.-
Explanation:
<u>First, we need to calculate the total avoidable production costs of making 300,000 units:</u>
Total variable cost= 300,000*15= $4,500,000
Total avoidable fixed cost= 800,000 - 200,000= $600,000
Total production cost= $5,100,000
<u>Now, the total differential cost of buying:</u>
<u></u>
Cost of buying= 300,000*18= $5,400,000
It is cheaper to make the units in-house.
Answer:
The correct answer is option b) $367,000
Explanation:
Here for calculating the correct amount of inventory that Horace should report can be calculated through, by adding the inventory worth $320,000 at 31 December, 2015 with consignment given to Herschel worth $47,000, SO
Correct amount of inventory =
Amount of inventory on 31 December
+
Consignment given to Herschel
= $320,000 + $47,000
= $367,000
Here we are taking Herschel consignment in to account and that too at the historical purchase cost because Horace company has give the Herschel to sell the goods on his behalf but the transfer of ownership has not taken place here , the right to ownership here remains with the Horace and the amount at which they should be recorded is at purchase cost not selling cost.
We will also not include goods worth $ 22,000 in to the calculation because the Horace company has not received the goods physically yet, we will include those goods in to inventory on January 3 not before that.
Answer:
WACC 10.42614%
Explanation:
<u>First we use CAPM to solve for the cost of equity</u>
risk free 0.04
market rate
premium market (market rate - risk free) 0.08
beta(non diversifiable risk) 1.1
Ke 0.12800
Then we calculate the WACC (weighted average cost of capital)
D 80,000 bonsd x 1,000 = 80,000,000
E 4,000,000 shares x 40 = 160,000,000
E+ D 80,000,000 + 160,000,000 = 240,000,000
equity weight: 2/3
liability weight: 1/3
Ke 0.128
Equity weight 0.6667
Kd 0.086
Debt Weight 0.3334
t 0.34
WACC 10.42614%
Answer:
A business management degree focuses more on planning and organizing, whereas a degree in business administration provides a broad background and then allows the student to focus on a specialized area of business.
Answer:
Acquisition fee
Explanation:
Acquisition fee is paid to start the application process because the bank or the lessor is concerned about the security fees that must be paid to protect its position. These security fees are paid to company because in time of default the fee covers the installment payment and helps the bank to recover some amount as part of its recovery plan. This security fee is recoverable at the end of the period and the processing fee is not recoverable (Usually).