Answer:
A. $3,610,000
Explanation:
The Equivalent production = 190,000 + [70% × (200,000 - 190,000)] = 197,000 tons.
While the Cost per unit = ($3,152,000 + $591,000)/197,000 = $19;
the transferred costs = 190,000 × $19 = $3,610,000
= $3,610,000 which is the final answer.
Answer:
The price elasticity of demand for Twinkies in the given price range is 0.641.
Explanation:
The price of Twinkies is reduced from $1.45 to $1.25.
The quantity of Twinkies demanded increases from 2,000 to 2,200.
Price elasticity of demand for Twinkies
= 
= 
= 
= 
= 
= 0.641
Answer:
Option D,50% is the correct answer.
Explanation:
Dividend payout ratio is an important financial measure which measures the ratio of company's dividends payment to net income of the company.
This implies the portion of income earned in a year given to shareholders as dividends while the remains is kept in the business as source of further growth.
Dividend payout ratio=dividends/net income=$100/$200=50%
Answer:
is a potential liability that has arisen because of a past event or transaction.
Explanation:
A contingent liability is a potential liability that has arisen because of a past event or transaction.
Some of the characteristics of contingent liabilities includes being remote, probable, estimable, and reasonably possible.
In order to record a contingent liability as a liability on a company's balance sheet, it must be probable (likely to occur) and subject to estimate.
Hence, companies are advised to record the contingent liabilities so as to meet the Generally Accepted Accounting Principles (GAAP) and IFRS requirements.
Answer:
Project 1, 2 and 3 should be rejected.
Explanation:
This problem required us to tell which project we should not accept. To solve this we have to apply this rule that is accept the project with positive NPV.
The detail calculation are given below.
The discount factors to be used for CFO, CF1, CF2 and CF3 is 1, 0.74, 0.55 and 0.41 respectively. It is calculated by using following formula.
DF= (1 + i)^-n (n is period and i is 35%)
So now calculating NPV of each project by multiplying cashflow with discount factor.
Project 1 = -100+ (50*0.74 ) + (50*0.55) + (50*0.41) = -15 M dollars
Project 2 = -80 + (40*0.74) + (45*0.55) + (50*0.41) = -5.15 M dollars
Project 3 = -70 + (30 *0.74) + (40*0.55) + (50*0.41) = -5.3 M dollars
Project 4 = -60 + (30 *0.74) + (40*0.55) + (60*0.41) = 8.8 M dollars
Project 5 = -50 + (25 *0.74) + (30*0.55) + (70*0.41) = 13.7 M dollars
