Answer:
The question does not include any requirements, so I looked for similar questions:
- Use the least squares method to develop the estimated regression equation.
-
For every additional car placed in service, estimate how much annual revenue will change.
1) Y = -14.95 + 12.82X
2) for every 1 thousand cars put into service, revenue should increase by $12.82 million.
See attached PDF for calculations
Question lacks some precise information about the cash flow. However it would be inferred IBM has a positive future investment value.
Answer:
<u>IBM</u>
Explanation:
Remember, the answer depends on the discounted cash flow results irrespective of which offer has lower cost.
Since IBM offers the computers for a single payment of $55,000 due at the end of four years. The Hub could reach a decision if the present value of money calculated by means of discounted cash flow is higher than the current cost of the investment, the Hub could then purchase the computers from IBM.
Answer and Explanation:
The company handles the credit accounts including methods of invoicing and collecting past-due accounts, is indicated by the collection policy as it includes the net days given to the customers
Now if the customer pays the cash within eight days after the sale, the amount of cash paid is
= $100,000 × 0.99
= $99,000
And, if payment is made after 15 days so no discount would be given as it is exceeded the prescribed time limit i.e 10 days. So in this case the $100,000 cash is paid
Now the days sales outstanding is
= 0.30 × 10 + 0.70 × 35
= 3 +24.5
= 27.50 days
Answer:
$75.40
Explanation:
Mark up is a percentage applied on the cost to get the selling price. In other word, the difference between the marked-up amount and the total cost gives the profit of the entity.
To get the target selling price, we would first determine the total cost, then apply the mark up percentage on the cost and add the result to the cost.
Total cost per unit
= $12 + $4 + $9 + $10 + $5 + $12
= $52
Amount of mark up
= 45% * $52
= $23.40
Target selling price = $52 + $23.40
= $75.40
Answer:
Total factory overhead to be charged to each unit of Hooks is $33
Explanation:
Sum of all Activity Cost = Total Factory Overhead
Calculate the total factory overhead to be charged to each unit of Hooks
Activity rate = Budgeted amount / Total of each activity base
∴ Activity Rate
For Setups = 60,000 / 20,000 = 3 per setup
For Inspections = 120,000 / 24,000 = 5 per inspections
For Assembly = 420,000 / 28,000 = 15 per dlh
Activity Cost = Activity base for each unit * Activity rate
∴ Activity Cost
For Setups = 1 x 3 = $3
For Inspections = 3 x 5 = $15
For Assembly = 1 x 15 = $15
Recall that;
Sum of all Activity Cost is the Total Factory Overhead
= $3 + $15 + $15
= $33
