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Radda [10]
1 year ago
7

Smith Company manufactures washing machines in their own facility. They sell them to stores like Best Buy and Lowes for ultimate

sale to the consumer. Here are some costs for Smith Company. Calculate total PRODUCT costs for Smith Company. Direct Labor $20906Sales and Marketing Expenses $23289 Metal to make the exterior shell of the washing machines $50181 Electricity to run the machinery in the factory $18939Salary of the manager who oversees manufacturing $8204 Salary of the Chief Operating Officer of the Company $16665Water bill for the building that houses corporate headquarters $2100
Business
1 answer:
MariettaO [177]1 year ago
6 0

Answer:

Answer in Attachment

Explanation:

Download xlsx
You might be interested in
g Western Electric has 27,500 shares of common stock outstanding at a price per share of $70 and a rate of return of 13.45 perce
Ede4ka [16]

Answer:

The WACC is 10.93%

Explanation:

The WACC or weighted average cost of capital is the cost of a firm's capital structure. The capital stricture may be formed of the following components namely debt, preferred stock and common stock. The WACC assigns the weights to each of these components based on the finance provided by each of the above components as a proportion of total capital structure or total assets.

The WACC is calculated by taking the market value of each component. The formula for WACC is as follows,

WACC = wD * rD * (1-tax rate)  +  wP * rP  +  wE * rE

Where,

  • w represents the weight of each component
  • r represents the cost of each component
  • D, P and E represents debt, preferred stock and Common stock respectively.
  • We take after tax cost of debt. So we multiply rD with (1-tax rate)

Debt = 377000 * 106.5%  = $401505

Preferred stock = 6850 * 90.50  =  $619925

Common stock = 27500 * 70  = $1925000

Total assets = 401505 + 619925 + 1925000  = $2946430

WACC = 401505/2946430 * 7.81% * (1-0.35)  +  619925/2946430 * 6.9%  +

1925000/2946430 * 13.45%

WACC = 0.1093 or 10.93%

6 0
2 years ago
The number at the bottom right of each supplier’s box shows the portion of Boeing’s costs in thelast year that went to that supp
vaieri [72.5K]

Answer:

both

  • United Continental with a capital expenditure of 60.68%
  • Southwest Airlines with a capital expenditure of 51.38%

Explanation:

Since United Continental's purchases of Boeing planes represent over 60% of their capital expenditures, this means that Boeing had to be the primary plane supplier. Even if the company purchased planes form other manufacturer, their purchases would not even be 40% of the company's purchases.

The same applies to Southwest Airlines, even though the purchases from Boeing are a little lower, they are still over 51%. This means the company could not have spent more money on purchasing planes from another company. The maximum purchase from another airplane manufacturer would have been less than 49% at most.

Besides the previous analysis, you must also consider that the company spends money on things besides airplanes, e.g. new training facilities, equipment, computer software, other vehicles, etc.

5 0
1 year ago
A North Face retail store in Chicago sells 500 jackets each month. Each jacket costs the store $100 and the company has an annua
algol13

Answer:

1) What is the annual holding and ordering cost?

annual ordering cost = $100 x 12 = $1,200

annual holding cost = ($100 x 25%) x [500 x 1/2(average inventory)] = $6,250

total $7,450

2) On average, how long does a jacket spend in inventory?

= 30 days / 2 = 15 days

3) If the retail store wants to minimize ordering and holding cost, what order size do you recommend?

economic order quantity (EOQ) = √[(2 x annual demand x order cost) / annual holding cost per unit]

EOQ = √[(2 x 6,000 x 100) / 25] = √48,000 = 219.09 units ≈ 219 units

4) How much would the optimal order reduce holding and ordering cost relative to the current policy?

EOQ = 219

total number of orders = 6,000 / 219 = 27.4 per year

average inventory = 219 / 2 = 109.5 units

annual ordering cost = $100 x 27.4 = $2,740

annual holding cost = ($100 x 25%) x 109.5 = $2,737.50

total $5,477.50

annual savings = $7,450 - $5,477.50 = $1,972.50

6 0
2 years ago
From each paycheck of your afterschool job, you’re able to save $45 toward the coat. You get paid twice a month. How many months
RoseWind [281]

Answer:4

Explanation:The total in 4 months would equal 360

6 0
1 year ago
A 9% coupon bond with an ask price of 100:00 pays interest every 182 days. If the bond paid interest 112 days ago, the clean pri
alina1380 [7]

Answer:

$100

Explanation:

The computation of the clean price is shown below:

As we know that

Clean Price = Dirty Price − Accrued Interest

where,

Dirty price is

= Ask price + Accrued interest

The ask price is $100

And, the accrued interest is

= $100 × 9% × 112 days ÷ 360 days

= $2.74

Now the dirty price is

= $100 + $2.74

= $102.74

Therefore the clean price of the bond is

= $102.74 - $2.74

= $100

Or we can say that the ask price equivalent to the clean price of the bond as both are the quoted prices

4 0
2 years ago
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