Answer:
Part A:
Labur Productivity:
For US=5.14, LDC=1.35
Capital Productivity:
For US=1.72 LDC=4.31
Part B:(Multi factor productivity)
For US=1.29 LDC=1.03
Part C: (Raw material productivity)
For US=4.90 LDC=10.02
Explanation:
Part A:
Labur Productivity:
For US:
For LDC:
Capital Productivity:
For US:
For LDC:
Part B:
For US:
For LDC:
Part C:
For US:
ForLDC:
Converting Raw material FC into $ (1$=10FC)
Raw Material =19550/10=$1955
Answer:
a. The chef should report her income from cooking classes held at her apartment.
b. the chef should continue and try to expand her cooking classes with reporting her income.
c. started earning and try to secure the license to get a job.
Explanation:
The young chef who got graduated from Cuba should try to secure a license first in order to secure a good job. The chef was unable to find a job and so she started cooking classes at her home. The income was unreported as she did not had license so she is unable to report her income to the government.
<span>Let us assume Toni made 100 apple pies in 10 hours, that means 10/hour.
Now, with help of assistant she produces 60% more and work for 20% less time.
So,
[100+(60% of 100)] = 160 apple pies produced in [10-(20% of 10)]= 8 hours.
160/8 = 20/hour
So, with the help of assistant Toni's output of apple pies per hour increases by 100%.</span>
Answer:
95%, 73.1%
Explanation:
Actual output= 950 per year
Design capacity= 1300 per year (Theoretical capacity)
Effective capacity= 1000 per year (efficiency of the shop)
Now Efficiency = actual output/effective capacity = 950/1000 = 0.95, 95.0%
Utilization= actual output/ design capacity = 950/1300 = 0.7308, 73.1%
Answer:
Pros: Use of singe hurdle rate saves time in the evaluation of projects which results in prompt decision making.
Cons: Company may reject good projects and accept bad ones due to the assumptions underlying WACC use in capital budgeting.
Explanation:
Pros of using WACC: The use of WACC implies that the company uses a single hurdle rate for all projects, which simplifies the decision making and saves time when evaluating projects
Cons of using WACC: Use of WACC assumes that there is no change in capital structure i.e all projects are financed in exactly the same way and all projects have the same risk . These assumptions may lead to the company rejecting good projects and accepting bad ones. For example the company may accept a high risk project with a return of 14% when the minimum return that should be accepted according to the high risk divisional WACC is 16%. Likewise, the company may reject a low risk project with a return of 11%, when it is in fact a good project whose minimum return should be 8% as per the low risk divisional WACC.
