Answer:
Option (D) is correct.
Explanation:
Given that,
Direct materials used in production = $250,000
Direct labor = $185,000
Manufacturing overhead = $245,500
Beginning Work in Process Inventory = $20,000
Ending Work in Process Inventory = $30,000
Cost of finished goods manufactured for the year:
= Direct materials used in production + Direct labor + Manufacturing overhead + Beginning Work in Process Inventory
= $250,000 + $185,000 + $245,500 + $20,000 - $30,000
= $670,500
Answer:
The correct answer is option A.
Explanation:
An increase in supply decreases the equilibrium price as the supply curve shifts rightward and intersects the demand curve at a lower point. This decline in the equilibrium price causes the quantity demanded to increase. The demand for the product remains the same.
The statement given in the question is false. A change in demand is caused by a change in other factors while the price of the product remains the same. The change in price affects the quantity demanded.
Answer:
a. $44,000
Explanation:
The computation of the total cash flow net of income taxes in year 3 is shown below:
= Incremental sales - annual incremental cash operating expenses - one-time renovation expense - depreciation expense - income tax expense + depreciation expense
= $310,000 - $230,000 - $30,000 - $30,000 - $6,000 + $30,000
= $44,000
Since depreciation is a non-cash expense so it would be added back to the computation part
The depreciation expense would be
= (Original cost - residual value) ÷ (useful life)
= ($120,000 - $0) ÷ (4 years)
= ($120,000) ÷ (4 years)
= $30,000
And, the income tax expense would be
= (Incremental sales - annual incremental cash operating expenses - one-time renovation expense - depreciation expense) × tax rate
= ($310,000 - $230,000 - $30,000 - $30,000) × 30%
= $20,000 × 30%
= $6,000
Cost of Equity as per CAPM = rf +beta*(rm-rf)
rf = risk free rate = 2.5%
beta =1.12
rm-rf = market risk premium = 6.8%
Cost of equity = 2.5+ 1.12*6.8 = 10.116% = 10.12%
Answer:
Advantages of Informal Sector employment:
Some employers pay well because company owners do not have many tax obligations. Employee effort is directed towards achieving profit rather than satisfying irrelevant routines.
There can be a close and direct relationship with the employer, therefore making it easy to get permission when in need of time off.
You are saved the hassle of paying Pay As You Earn tax.
There’s no red tape when it comes to dealing with personnel issues which are expressly handled either by the employer him/herself, or a senior manager.
Sometimes employment is done on the spot with little emphasis on attending lengthy job interviews and countless aptitude tests.
Sometimes one is employed because of one’s personal relationship with the employer rather than on merit.
Disadvantages of Informal Sector employment:
Little or no job security.
Unprotected by labour laws.
Odd working hours.
No pension, insurance or health insurance scheme.
Summary dismissals.
Difficult to make any savings due to low wages.
A brief illness or injury or injury can mean no financial means to survive.
Explanation:
